Airbnb House Hacking in OCC

[Luke Rzepiennik]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Colorado Spgs.

Purchase price: $400,000
Cash invested: $50,000

An up/down duplex. We are currently house-hacking, living in the 1-1 downstairs and doing an STR in the 3-2 upstairs. We plan to move out and STR both units in the next 6 months.

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

Wanted to generate big cash flow to fund future deals

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

Found it on the MLS. Made an at-asking offer on the first day it was on the market. Negotiated concessions and sellers ended paying for around $14,000 in repairs and updates (Electrical panels, fixed deck, fixed broken sewer pipes, ect.)

How did you finance this deal?

HELOC on our first home.

How did you add value to the deal?

Updated much of the house: New counter-tops in kitchens, new paint inside, new light fixtures, new fences, new hot tub, landscaping

What was the outcome?

It has been an awesome house-hack. The big cash-flow will allow is to move onto our next deal shortly. We are hoping to take out a HELOC on this house as well.

Lessons learned? Challenges?

We learned the power that making sacrifices, like living in a 1-1 basement apartment while house-hacking, can have on your finances.

I learned the hard way to vet contractors well.

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

Behr and Behr Real Estate Team. Rueth Team - Fairway Independent Mortgage