House Hacking Success Story | Denver Cap Hill House Hack
I love sharing success stories of Denver House Hacker’s crushing it! This post is to highlight Vasily Rossokhin first house hack purchased in September of 2020.
Investment Goals: Vasily had his mind set on building long term wealth. He was looking for a house hack with great long-term appreciation and cash flow. Less concerned about high cash flow while house hacking.
Investment Details: Capitol Hill attached Duplex.
Purchase Price: $740,000
Cash Invested: $177,000. (20% down to eliminate PMI and $20,000 in renovation cost)
Being a risk-averse investor, chose 20% down to eliminate PMI and increase long term cash flow. The $20,000 in upfront renovation costs consisted of new windows, kitchen refinishing, password-protected front gate for tenant security, and back entrance facelift.
What interested him in the property?
3 bed/ 1 bath on top + 3 bed/ 1 bath on bottom with shared front entrance. Plenty of space and easily “house hackable”. Great condition for the age of the property and excellent location.
How did you find the deal?
Like most of our house hacking clients, the property was found directly off the MLS. Our investor friendly agent was able to negotiate $10,000 off the asking price in a very hot market.
What was the outcome?
Vasily is currently living in the top unit and renting out the bottom unit as a long term rental for $2100/month. Average monthly expenses after the first year, $1000/month!
The top unit is estimated to rent for $2500/month after he moves into house hack #2 this summer.
Lessons Learned?
Schedule any rehab as soon as possible because many contractors are booked months in advance. When it comes to receiving quotes, everything is negotiable.
Challenges?
First floor tenants' ceilings leaked from the old plumbing. $1800 in unexpected repairs + $100 in DIY drywall repair.
Second floor furnace died a few months after closing. $2000 repair/ replacement costs.
Some issues with loitering+drugs in the front/back: password-protected front gate+installing Ring cameras with lights/sirens+more secure new back entrance mentioned above all helped a lot.
Keep on crushing it Vasily Rossokhin
