House Hack in the Islands, Gilbert AZ

[John Bradley]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $266,000
Cash invested: $30,000

House hacking my primary residence by renting out each room to cover my mortgage plus some!

I partnered with a friend of mine who will do the labor/remodel while I finance and support the deal financially. We live in the property and rent out the other rooms to Flight Instructors since he's a Flight Instructor as well and get's asked all the time if he knows anywhere to rent. The best part is that the Flight School's bunks on site are $750 a month and we can rent out 2 other bedrooms to live for free and double our mortgage :)

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

The location being in Gilbert AZ in a nice area was perfect. Worst house on the block in a good area.

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

MLS deal, used the inspection to negotiate 30k off the deal since it was in original shape from the 80's and had a leak in the roof.

How did you finance this deal?

First time buyer conventional loan. I could've put 3% down but I put 5% instead.

How did you add value to the deal?

Complete interior remodel.

Lessons learned? Challenges?

Partner when they can cover value that I cannot!

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

My trusty realtor that does all of my deals and my good friend that can do the remodel.