Updated over 5 years ago on .
My First House Hack - Denver,CO
Investment Info:
Single-family residence buy & hold investment in Denver.
Purchase price: $435,000
Cash invested: $28,000
A 3bed/2bath single family with 2bed/1bath mother in law suite with a full kitchen in the back.
Purchase Price: $435k
Lease Rent for main unit: $1,500/mo ($750/room + myself living in one room)
AirBnB Rent: Target of $2,200/mo
Monthly Payment: $2,500 (after utilities, water, internet)
What made you interested in investing in this type of deal?
First and foremost, I know the hardest part of real estate investing is getting started with your first one. It is very difficult to find any investment properties that cash flow (especially with my limited budget), but learning more about the house hacking made this realistic. My goal was to cash flow as much as possible by finding a house with the maximum amount of bedrooms. Additionally, I liked the flexibility of having a unit that would be easy to AirBnB or rent by the room.
How did you find this deal and how did you negotiate it?
I found it on the MLS. The asking price dropped from $450k to $435k and I went in at $435k as the numbers worked and I didn't want to lose the home from any competing offers!
How did you finance this deal?
5% down FHA loan.
How did you add value to the deal?
I furnished the AirBnB unit with beds, couches and desks for each room. I also installed a washer/dryer.
What was the outcome?
It is still a work in progress! I will know more in a couple months after I get more renters or stick with the AirBnB route.
Lessons learned? Challenges?
I closed on 3/17/2020, and this is right when the COVID-19 started to become much more serious and the city essentially shut down. The general economic uncertainty has presented its challenges.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Craig Curelop represented me as my agent and did a fantastic job! I definitely relied on his expertise and tried to mirror his process as he has done a number of successful house hacks in Denver already. I used the same lender Craig used for all 3 of his house hacks, Michael Stone. He was extremely helpful in walking me through the financing aspect of the purchase.
