House hack + Short term rental in Denver, CO
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $615,000
Cash invested: $15,000
House hack + Short term rental = profit! My wife and I utilized private money loans to acquire this deal, and are looking to break even on the investment while we're living in it. Based on our projections, year 2, when we move out, we will be cash flowing approximately $980/mo, split 3 ways (myself and the two private money lenders).
What made you interested in investing in this type of deal?
It's the most lucrative way to house hack and generate income at the same time with the exception of living in the living room while the bedrooms are rented out (looking at you, Craig Curelop haha)
How did you find this deal and how did you negotiate it?
We found it on the MLS. We were approximately 65k over asking price (Denver is a hot market!).
How did you finance this deal?
We used the commission of the deal towards the down payment and closing costs (I'm a realtor) as well as private money loans to finance the down payment. 5% Conventional loan.
How did you add value to the deal?
We will be operating the main unit and basement as separate units for AirBnB. The basement will have a separate unit, which will allow us to operate two units in one single family home!
What was the outcome?
Still exploring the income generation capabilities of this property
Lessons learned? Challenges?
Let the transaction coordinator, lender, and selling party that you'll be using the commission for the down payment funds.