Airbnb House Hack at the "PeptoBismol House"

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $190,000
Cash invested: $93,783

Our 2nd House Hack! Although it's technically a single family home, it has an attached mother-in-law suite with private entrance so the house functions like a duplex. We completed a full rehab and decided to go the STR route with this one, staying in the 1/1 and renting out the 3/1. After a year, we moved out and use the whole 4/2 as an STR.

What made you interested in investing in this type of deal?

We loved the location and the floor plan of the house. Doing a full remodel meant we got to choose the design and could easily set it up as an STR.

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

30 year fixed conventional 5% down at 2.85% interest. Used cash and 0% interest credit cards to rehab and furnish the property.

How did you add value to the deal?

Completed a major rehab and furnished the home. Worked as the GC and hired my own subs this time.

What was the outcome?

Subsidized housing expenses during year one, $150,000 of forced equity, cash flowing STR and access to a HELOC we can use for future deals

Lessons learned? Challenges?

Supply chain issues during COVID significantly increased our rehab timeline, but the numbers still worked out in the end.