House hack turned equity into other investments.
Investment Info:
Single-family residence buy & hold investment in Denver.
Purchase price: $440,000
Cash invested: $88,000
Primary Residence used as a house hack from the day of purchase. Remodeled the basement with my own labor. Rented this space for $750/mo. Has a separate entrance and has helped to lead to other investments. The property has appreciated to almost double the purchase price in 4 years. With a cash-out refinance, it allowed reinvesting in another property and development on another.
What made you interested in investing in this type of deal?
The location was up and coming, next to a very high-income area, great accessibility, and home layout allowed for a separate entrance basement.
How did you find this deal and how did you negotiate it?
MLS. Paid over asking with an escalation clause to win multiple offer situation.
How did you finance this deal?
20% down Conventional
How did you add value to the deal?
Added a bathroom, garage, remodeled basement, remodeled kitchen. All my labor
What was the outcome?
House hack that gained large amounts of equity within 4 years that allowed a cash-out refinance that went to other investments.
Lessons learned? Challenges?
Materials and labor are not getting cheaper.
