Investment Info:
Single-family residence buy & hold investment in Arvada.
Purchase price: $307,000
Cash invested: $50,000
Originally bought this house with intentions to be a primary residence. When searching for a home in a hot market we really began to analyze our must haves and wants. My wife and I stuck to 2 must haves; location and budget, This house was outdated but listed well below market value. We knew it was competitive, so we ran the numbers to determine what amount we were wiling to pay to not lose out on this property. Two years into owning the home we stumbled into househacking by renting out basement to traveling physical therapy students, we then started listening to BiggerPockets and educated ourselves on all things real estate investing and got motivated to change our lives! We completed cosmetic renovations (shown in pics) and now rent this house for $500 true cashflow every month! Our househacking allowed us to save for the next down payment on our next investment property!
What made you interested in investing in this type of deal?
Honestly we we're just looking for a house for ourselves in a good appreciating and enjoyable place to live.
How did you find this deal and how did you negotiate it?
Found on MLS after a couple months of good patience and sticking to our numbers and must haves. New our numbers and despite low listing price, knew what the real value in house was. We offered 40k over asking, beat out 13 offers, still appraisal came in 3k over our offer, thus earning us instant equity!
How did you finance this deal?
5% down. Conventional.
How did you add value to the deal?
Cosmetic renovations to all surfaces. New roof.
What was the outcome?
Househacking helped us save for the downpayment on our next investment property. We departed this primary residence and now rent the home for $800/mp more than mortgage, true cashflow about $500/mo.
Lessons learned? Challenges?
Know your market, know your must haves, and know your budget. Then work an agent that helps you know good value no matter the listing price or market.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes worked with excellent lender Hunter Combs and agent Jameson Cappelli
