Investment Info:

Single-family residence other investment.

Purchase price: $349,000
Cash invested: $30,000

House Hack example. I purchased this property as my primary residence- and then converted the bonus room off the garage into a furnished, studio apartment with a private entrance. This 500 sq. foot apartment covers my entire mortgage each and every month. I currently rent to traveling nurses and people who are in between homes for whatever reason. Hands down- this is the best investment I've ever made because not only do I get a rental property- but my mortgage is paid in full.

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

I wanted to buy a house for me and my daughter. With housing prices going up I needed to figure out a way to get into a house I loved and afford the mortgage at the same time. A friend of mine was paying her entire mortgage + each month by renting out her basement, so I thought I would give it a try.

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

Since this was also going to be my primary residence, I searched the MLS for a home I liked, but needed to make sure it had a garden level with a private entrance.

How did you finance this deal?

Standard conventional loan. Since this was my primary, I was able to put 10% down.

How did you add value to the deal?

After closing, my mom and her extremely talented and handy husband came down and stayed with me 5 weeks. We added plumbing, electric, framing and built out a 500 sq. foot studio apartment with a full kitchen and bathroom. We also furnished it. I have to say- this is one of my more prouder projects.

What was the outcome?

I have been fully booked since April 2021. FULLY. BOOKED. Each month the income covers my entire mortgage. In a few more months I am going to test boosting revenues from $1850/ month to $2250- I think I am maxed out at $1850 for now- but let's be honest...for a garden level studio w/ private entrance- this is a great rate. I couldn't be happier.

Lessons learned? Challenges?

#1- DO IT! House Hacking is a great way to add value to your current residence.
#2. BE CREATIVE! Think about your current space available. Could you create a private entrance anywhere? Could you take the stairs out of the basement to the main area to expand out living space? Could you convert windows into a door to make a private space?

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

I used Vance Blew with SWBC Mortgage in Gainesville, GA
I represented myself in the transaction since I have my real estate license. I also received $10,500 at closing that was I able to use for my renovations.