All Forum Posts by: Bradley Dosch

This is the monthly house hacker's meetup put on by Craig Curelop and the FI Team. Five time house hacker Jeff White will be sharing his story. Make sure to log on and introduce yourself!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $366,000
Cash invested: $11,000

This was my first house hack and first time investing in real estate. I lived in the basement of a single family house and rented out the upstairs bedrooms to cover my mortgage and cash flow. It now cash flows roughly $200/month after all expenses. I bought this property with a 3% down conventional loan in October 2019. We put about $50k worth of renovations into this property. After having bought it in October 2019 for $366k, it is currently worth $475k. Plenty of road bumps but I learned lots

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

The owner occupant financing that I could take advantage of

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

Found it on the MLS. Was able to beat out other offers but creating a genuine relationship with the listing broker.

How did you finance this deal?

3% down conventional owner occupant loan with a 3.5% interest rate

How did you add value to the deal?

~$50k in renovations. Added a bedroom by adding a egress window. Landscaping, painting, new kitchen, refinished the basement, new windows, etc.

What was the outcome?

Tenant roommates covered mortgage and other expenses. I lived for free. After 12 months, moved out and handed keys to property manager. About $100k in total appreciation. Modest cash flow

Lessons learned? Challenges?

Learned a bunch about managing tenants and renovations

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

Yes - Casey Miller from Liv Sotheby was my real estate agent. He was great. Mo Robinson from First Western Trust Bank was my lender and also fantastic.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $366,000
Cash invested: $11,000

This was my first house hack and first time investing in real estate. I lived in the basement of a single family house and rented out the upstairs bedrooms to cover my mortgage and cash flow. I lived here for 12 months and then moved out to rent it out fully. It now cash flows roughly $200/month after all expenses. I bought this property with a 3% down conventional loan in October 2019. I have not refinanced and still have owner occupant financing on what is now a full time rental property. We put about $50k worth of renovations into this property. After having bought it in October 2019 for $366k, it is currently worth $475k.

There were plenty of road bumps along the way which I took as learning opportunities. I learned so much by going through this experience; way more than any book or podcast. I am a firm believer that the best way to learn is by doing.

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

The owner occupant financing that I could take advantage of

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

Found it on the MLS. Was able to beat out other offers but creating a genuine relationship with the listing broker.

How did you finance this deal?

3% down conventional owner occupant loan with a 3.5% interest rate

How did you add value to the deal?

~$50k in renovations. Added a bedroom by adding a egress window. Landscaping, painting, new kitchen, refinished the basement, new windows, etc.

What was the outcome?

Tenant roommates covered mortgage and other expenses. I lived for free. After 12 months, moved out and handed keys to property manager. About $100k in total appreciation. Modest cash flow

Lessons learned? Challenges?

Learned a bunch about managing tenants and renovations

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

Yes - Casey Miller from Liv Sotheby was my real estate agent. He was great. Mo Robinson from First Western Trust Bank was my lender and also fantastic.

Thanks for the response Matt. These were addressed during inspection so now I’m working to fix it. 

I appreciate the input on vinyl vs Hardie. I’ll keep that in mind. 

Thank you very much Mike! I will certainly take your advice into consideration and I like this route better too. 

Could someone please help with the following situation. See Google drive for pics: 

https://drive.google.com/file/...

My house was built in 1971 and has the original composite wood siding. From the pictures, there are certainly places with damage but I'd say the majority is in decent condition.

I am currently house hacking this house but plan to move out soon and turn it into a long term rental property. It is a single family house near Denver in a suburban neighborhood.

My original plan was just to have a contractor spot fix the places in the pictures. However, after talking to more people I am considering changing the entire siding. I am trying to figure out if this is worth it.

I have been told the most cost effective, long term solution is to put vinyl siding over the current composite wood siding. They would put a layer of insulation in between.

I like this idea because it seems like it will be low maintenance and really take care of the problem rather than just putting a band aid on it. I also love the look, price and durability of vinyl siding. My biggest concern is that I am over improving. Does anyone feel that this would be over improving? Of course, the price is substantial too – looking around $12k.

Anyway, this is a really big decision for me and I would really appreciate anyone being able to give any insight! Thank you so much