Primary Residence to BRRR conversion

[Niles Emerick]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $350,000
Cash invested: $35,000

Bought as primary residence, converted a den to a 4th conforming bedroom, cosmetic updates, lived there for just over 2yrs, then rented to 4 roommates.

What made you interested in investing in this type of deal?

Low capital investment, simple conversion to "add" 4th bedroom, multi-family zoned lot, 150ft to light rail transit, across street from open space

How did you find this deal and how did you negotiate it?

MLS. Offered full price, negotiated down after inspection.

How did you finance this deal?

Primary Residence 80(1st) / 10(HELOC) / 10(down)

How did you add value to the deal?

Bedroom addition by adding a door to a den (already had egress and closet). Added back patio, new front and back door, painted interior, exposed original brick wall in living room. Homeowners insurance claim for new roof/gutters and exterior paint. Large attic still available for conversion to living space or 2nd unit.

What was the outcome?

Long-term hold cash-flowing property with multi-family upside.

Lessons learned? Challenges?

Initial tenants were all students, so I used a co-signer agreement for parents to protect against non-payment.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Have had good experience with USBank refinance on owner occupied loans and HELOCs in Denver market. Desktop approvals.