Updated almost 5 years ago on . Most recent reply
#1 House Hacking Contributor
- Real Estate Agent
- Colorado Springs, CO
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My First House Hack - Its so easy
#1 House Hacking Contributor
- Real Estate Agent
- Colorado Springs, CO
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $260,000
Cash invested: $10,000
Contributors:
Mark Hirleman
House Hack with an airbnb. SFH with 4 bedrooms. Live in one. Rent the other three. Converted one of the garages into a studio kitchenette apartment by using a 20K personal loan. The airbnb nets me $1450 every month and the bedrooms rent for $1800 total. On a $1550 mortgage I am grossing $3250 on rent every month.
What made you interested in investing in this type of deal?
Cash flow and living for free. Snowballing this cash flow into my next house hack a year later.
How did you finance this deal?
I financed it with a conventional mortgage and then used a personal loan to convert the garage.
How did you add value to the deal?
I converted the garage into a studio apartment that makes me $1450 a month after paying all expenses and loan repayments.
What was the outcome?
Grossing $3450 in rent a month and living for free.
Lessons learned? Challenges?
Lessons: Building Plans and managing the conversion of a garage into a studio apartment.
Leveraging debt and other people's money to create cashflow with very little of your own investment.
- Ryan Thomson
