First House Hack in Westminster CO

[Steven Mitchell]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $401,500
Cash invested: $20,075

Contributors:
Craig Curelop

House Hack investment. Built in 1955. 4 Bed, 2.5 Bath. 1,100 sq ft main level.

Upstairs: 3 bedrooms, 1 & 1/2 bath.
Downstairs: 1,000 sq ft finished basement with bedroom, office, full bath, and full kitchen (no dishwasher). 100 sq ft basement storage/laundry area.

Rehab: 55x16 ft concrete driveway $11k cost versus $3k seller credit. Painting in all rooms of the house. Replaced old carpet in basement with vinyl plank. Back yard reseeded and back fence repair as improperly installed.

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

Reading The House Hacking Strategy by Craig Curelop!

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

Found on the MLS via the FI Team and real estate agent Nick Monge. Offered asking price and requested a credit for driveway repair.

How did you finance this deal?

5% down conventional loan. Used a 401K loan to finance the down payment and preserve cash for improvements after moving in.

What was the outcome?

Ended up effectively making this 4 bedroom home a 5 bedroom rental due to the mother-in-law suite in the basement. Currently making $350 per month over the mortgage while living in the property and planning to make about $1,200-$1,400 per month over the mortgage after moving out.

Lessons learned? Challenges?

Avoid emotional over-investing. While a concrete driveway was great, I could have gone with loose stone for a lot less money. Hire painters to speed up the rental process and avoid vacancies as much as possible. Get the rooms rented as fast as possible (with great tenants based on high standards) and keep those rooms rented! Also set up all leases to expire or renew every July so that you can allow tenants the option to move out and set the expectation of renewal and increasing rents slightly.

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

The FI Team and agent Nicholas Monge - both are amazing!