Single-family residence buy & hold investment.
Purchase price: $402,000
Cash invested: $30,000
Single family home with fully separate basement apartment. This property started as a house hack renting out the 3 bedrooms in the basement individually. After 1.5 years of house hacking and many renovations (funded by the tenants) this property had appreciated greatly. We were able to take out a HELOC and used that to buy two additional properties. This home is now fully rented and cash flowing nicely.
What made you interested in investing in this type of deal?
The opportunity to purchase an undervalued home with many avenues to force appreciation.
How did you find this deal and how did you negotiate it?
MLS. Made an offer with an escalation clause in order to slightly out bid a cash offer.
How did you finance this deal?
Used a HELOC from a previous home as a down payment.
How did you add value to the deal?
Full kitchen and bathroom renovations. Added a bedroom in the basement.
Great job, congrats Matthew!
The beauty of the house hack! Bravo!
@Matthew Kresky nice! Congratulations!
@Matthew Kresky This is great! I bought my house hack a year ago and am in the process of putting in a basement apartment. The goal is to move elsewhere and convert it to a full time buy and hold in the future.
Why did you ultimately decide to move out and rent it out? Did you find another property to house hack?
Amanda Gisonni, Licensed Real Estate Agent in NY ((10401335254)
@Amanda Gisonni We moved out for reasons completely unrelated to real estate. But having the luxury to rent out the entire property and have rent cover the mortgage, the heloc payment and other expenses made that decision much easier.
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