Investment Info:
Single-family residence buy & hold investment in Arvada.
Purchase price: $357,300
Cash invested: $25,000
Rent-by-the-room house hack. Housing expenses are around $2300/month (including utilities). Rent collected from three roommates $2000/month. This lowered cost-of-living is allowing me to throw an extra $800/month towards my student loans. I want to knock those out for a peace-of-mind investment.
What made you interested in investing in this type of deal?
A combination of being able to lower my living expenses while living in a nicer neighborhood
How did you find this deal and how did you negotiate it?
MLS via agent found here on BiggerPockets
How did you finance this deal?
5% down conventional loan
How did you add value to the deal?
Made bathrooms functional; refinished hardwood floors; lots of minor cosmetic work;
Lessons learned? Challenges?
Refinishing the hardwood floors was absolutely NOT necessary for a rent-by-the-room scenario. In fact if I wanted to sell the property I'd probably need to redo the floors again at this point.
People willing to do roommate situations like these don't actually care about a lot of things a home buyer would, so the renovations necessary to get roommates can actually be much more minimal than I initially convinced myself of.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Mike Wilkinson
