Investment Info:
Single-family residence buy & hold investment in Roseville.
Purchase price: $535,000
Cash invested: $45,000
We purchased a 6 bedroom 3 bathroom house in Roseville that we are househacking. We are renting each room and live in the master bedroom. We renovated the upstairs bathroom and made fixture and hardware changes throughout the house. We have a pretty full house of 8 people but are learning great lessons along the way!
What made you interested in investing in this type of deal?
Househacking is the easiest barrier to entry of investing and combines the dream of home ownership with the benefit of having other people cover our mortgage!
How did you find this deal and how did you negotiate it?
We found this deal by looking at Zillow and only looking at properties that had been on the market for 60+ days, and it had poor quality pictures and overgrown front yard, making most people look the other way! Our real estate agent Kyle Renke from the David Greene team helped us negotiate 15k under asking.
How did you finance this deal?
5% down conventional loan
How did you add value to the deal?
We completely renovated the upstairs bathroom, updated all hardware and hinges on doors to a matte black finish, deep cleaned the whole house, bought stainless steel fridge and washer and dryer, updated all the light fixtures and fans, and tamed the front yard.
What was the outcome?
We are collecting $4,160 in rent, which covers our $2,950 mortgage and the $1,000 in utilities/supplies/cleaning service.
Lessons learned? Challenges?
The major lesson we've learned is that if we set a standard ahead of time for what type of tenant we want, we need to stick to those standards we set. Such as no pets, no kids, or a certain credit score. These are imperative to keeping the integrity and flow of the house.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
The David Greene team for both our agent and lending! Highly recommend!
