Updated over 7 years ago on .
House Hack Live in Flip turned Rental
Investment Info:
Single-family residence buy & hold investment in Denver.
Purchase price: $150,000
Cash invested: $10,000
Property started with house hacking with the goal of being a live and flip and realize had the ability to rent out as is while slowing updating property
What made you interested in investing in this type of deal?
The idea of house hacking allowed me to save the additional money up to do the repairs for the live in flip piece
How did you find this deal and how did you negotiate it?
My real estate agents found the deal on the MLS that was pre-foreclosure. Did not negotiate as the amount I paid is what the seller needed to ensure the paid everything off
How did you finance this deal?
I used a mortgage broker with FHA financing to ensure I had to bring as little of my own cash as possible to save that for repairs
How did you add value to the deal?
We added new carpet upstairs, along with painting the entire house. Updated one of the bathrooms and installed new door handles on cabinets
What was the outcome?
Property is now being rented out to tenants we know that wanted to live in the area as we continue to updated the property
Lessons learned? Challenges?
Money is absolutely made on the buy. Would not have been able to rent it out if had not gotten it for the price. Live in flip along with house hacking is a great way to minimize the amount of cash require, but can be very taxing as we did almost all the work yourself. The stress of coming home every night to a construction zone can wear on you emotionally.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, I would with Scott and Denise Franks at Signature Realty and Lisa Gaimara at Supreme Lending. Would not have been able to find or finance the deal with out all of these amazing people!