House Hack 6/3 Lakewood, Colorado!

[Kiley Marvin]

Investment Info:

Single-family residence buy & hold investment in Lakewood.

Purchase price: $425,000
Cash invested: $55,000

Last Room Rented!

The Property:
This house is a 6/3 in Lakewood, CO near the popular Belmar shopping center. It is set up like a duplex with a 3/2 upstairs and a 3/1 downstairs, both with their own kitchen and laundry room.

The Remodel:
I spent two months renovating the upstairs before renting out all 3 rooms up there to cover my mortgage while I renovated the basement. This way I only paid one mortgage payment out of pocket! It took another two months to renovate the downstairs. On both the upstairs and the downstairs I finished the remodel the day before tenants moved in, definitely stressful but talk about efficient margins! The biggest rehab projects were redoing the flooring (with sound barrier underlayment) on the whole house, upgrading the addition on the upstairs to match the quality of the rest of the house, hanging drywall & sound board on the ceiling of the basement and upgrading the basement kitchen/bathroom. I did about 80% of the work and hired out a few odd jobs and all the drywall (ask me about my drywall guy!).

Rehab Cost: $30,000
New ARV: $470,000

The Strategy:
This house will start out as a house hack but my long term strategy for this property is to rent out the upstairs by room and then experiment with airbnb in the basement! With the rent comps in my area, I will be looking at around $1600 cashflow and that's with 500/mo in reserves!

With the higher ARV I have from the remodel, I'm hoping to get rid of my PMI in 2 years so that's an additional $300/mo starting 2022!