Single Family Home as a "house hack"

[Torrey Moe]

Investment Info:

Single-family residence buy & hold investment in Merced.

Purchase price: $225,000
Cash invested: $5,000
Sale price: $272,000

This was our house hack home. We enjoyed it as home and did Airbnb out of the back separate entrance bedroom as well as rented the RV pad on the back of the property with a couple of different RVs that we flipped one at a time. We housed travel nurses and had at one point over $3,000 in gross cash flow from this property giving us a net profit from the property.

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

Seeking an option for net zero or net profit housing.

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

Bought on open MLS market as soon as we saw the house hacking opportunity with the separate entrance back room and RV pad.

How did you finance this deal?

FHA

How did you add value to the deal?

Refinished flooring myself with Home Depot sander I bought and then bartered into a deal where I bought a 40 foot Park Model RV that we rented on the property for $1,200/month at one point.

What was the outcome?

Great. Helped us bring our business debt down with cash flow from $250k to around $150k - combined with other efforts - and we sold at a net profit of $41k with which we have been able to dive into house flipping.

Lessons learned? Challenges?

Definitely prefer the vision of house hacking with say a four plex and living in one of the units. That said, it's certainly enjoyable when you set it up right to do it the way we did it since we got to enjoy living in a nice single family home on a large lot with relatively light foot prints from the travel nurses - they are out working most of the time.

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

Agent and lender here in Merced. Jeff Lawry with London Properties and Scott Crawford as my lender. Great guys! Highly recommend them.