First House-Hack With an Attached Guest Suite

2 Replies

Investment Info:

Single-family residence buy & hold investment in Lynn Haven.

Purchase price: $207,000
Cash invested: $1,500

Contributors:
@Cain McNeil

My wife and I purchased our first home. It is a 3 bed 2 bath SFR with attached mother-in-law/guest suite that has 1 bed 1 bath. The purchase is financed with my VA loan so we put no money down. We rent out the guest suite and one bedroom on Airbnb to cover all of our living expenses. They both rented within 24 hours of being listed and now we are on pace to cover all of our expenses. We plan on saving all the saved/earned income to put towards our next investment property.

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

I originally sought out small multi-unit properties to house-hack. I found this one hiding among other SFRs on the MLS and analyzed it as a STR. The numbers worked well, and it was in a great neighborhood. I wanted to make my wife happy with a good place to live but also pursue living for free so that we can expedite our financial freedom by reinvesting our profits.

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

I found the deal on the MLS hidden among other SFRs. I was looking for multi-unit properties and noticed it had a fully functional efficiency suite attached and thought I could get the best of both world's for myself and my wife (who didn't want to live in a traditional multi-unit and live next to long term tenants). My agent and I submitted a full price offer because it was only listed for about a week and in a hot market, but with seller paid closing costs.

How did you finance this deal?

I financed the deal with a zero down VA loan.

How did you add value to the deal?

The house was already fixed up post hurricane Michael (which devastated the area) but we bought just under the comparable price per square foot, furnished the guest suite, and added small fixtures.

What was the outcome?

We listed both the guest suite and a bedroom on Airbnb and both booked within 24-hours. We are on track to pay all our living expenses and even make a little.

Lessons learned? Challenges?

Act fast. I have missed out on deals in the past because I spent too long analyzing or trying to negotiate a fantastic deal rather than jump on a good deal when I first saw it. I also learned to find a good agent that knows the market, my agent was a big help and actually saw it for me before I ever arrived in the local area. I trusted his judgement, trusted my analysis, and dove in.

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

I worked with Cain McNeil, a local real estate agent (who I would highly recommend) and Irene Commander, a local lender (who I would also recommend). They made the process easy and we actually closed early.

Thanks Brady! I have some Air Force buddies at Sheppard AFB in your area for pilot training who are interested in real estate investing. 

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