Updated about 2 months ago on . Most recent reply
House Hacking - San Leandro, CA Investment
Investment Info:
Single Family buy & hold investment.
Purchase price: $500,000
I purchased a single family home in San Leandro for $500K, put $200K in renovations, did a cash out refinance and was able to pull out $720K at a $980K (ARV).
$100K went into converting a detached garage into a ADU
$100K went into updating the main house to be liveble.
I am house hacking living in main house and collecting $2K a month in rent from tenant.
What made you interested in investing in this type of deal?
My uncle is a local real estate investor and helped me buy providing access to his contractor for renovation work.
How did you find this deal and how did you negotiate it?
This deal was found through a estate sale and was bought all cash
How did you finance this deal?
I refinanced after renovations into a 30 year fixed rate, my w2 income could support the $720K loan amount.
How did you add value to the deal?
Main house: redid floors, Kitchen, Primary bedroom, primary bath, upgraded electrical panel and sub-panel for duel metering.
ADU: converted detach garage into a 1 bedroom cottage, with washer and dryer in unit.
What was the outcome?
$980K re-appraisal
Lessons learned? Challenges?
Do not wait to split electrical metering, PG&E is really expensive, this ate into my cashflow buy almost 40% for the first 6mo getting this set up. Maybe think about putting solar on house and charging tenet for electrical usage.