Wheat Ridge House Hack | Airbnb

[Ben Einspahr]

Investment Info:

Townhouse other investment.

Purchase price: $525,000
Cash invested: $37,700

This is my second HH located in Wheat Ridge CO. It is a 3bed/4bath town home. First lvl consists of garage and 1bed/1bath studio w/ separate entrance we operate as an airbnb. Avg. monthly income from BNB is $1,850. Avg. Occupancy is 80%. Reason for lower occupancy is about 1 weekend out of each month is blocked for family and friends to come stay. Makes it easy for grandparents to come see their new granddaughter :)

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

Being a new build with plenty of privacy, it was the perfect next step for my family. Was especially appealing for my wife b/c it was ready to go- no rehab needed. Bnb is pretty small total about 200sf but will make an excellent stabilized rental after moving out.

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

Found deal right off the MLS. No negotiating needed to close. Was on the market for about 30 days so listing was stale. Negotiated $7,500 seller credits to go towards closing costs

How did you finance this deal?

5% down, 30 year fix, Conventional

What was the outcome?

Another successful house hack. I feel very fortunate that vacation rentals have been in high demand over the summer. The higher rental income has helped recoup initial cash invested much quicker. The plan for HH#3 is to sell my out-of-state rental and use the equity/proceeds for downpayment/rehab.

Lessons learned? Challenges?

When managing multiple properties with high volume of turnover, having your systems dialed in early on is very important.
If investing with a significant other, having clear expectations in rolls and responsibilities is key. Airbnb auto messaging is a game-changer when used properly.

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

With the top notch service Envision Advisors provided during HH#1, it was a no-brainer to use them for HH#2. 5 out of 5 starts. Highly recommend their team.