Think house hacking is dead in Denver’s high-interest market? It might seem impossible in today’s high-interest environment, but one savvy investor just showed it can still be done.
As Colorado’s real estate market continues to evolve, the age-old advice to “buy now or be priced out forever” takes on new relevance. This July market update explores how, even in a high-interest environment, savvy investors are finding ways to enter the market and build wealth through creative strategies like house hacking.
Jeff White, known for his impressive track record of living rent-free through creative real estate investing, recently closed on a $533,000 triplex in Denver with just 5% down. Despite a 6.75% interest rate, he structured the deal to live essentially rent-free.
The secret sauce? A combination of:
- Strategic use of Section 8 tenants
- Savvy negotiations for seller concessions
- Buying down mortgage insurance for improved cash flow
Here’s how the numbers break down:
- Two Section 8 units bring in about $4,000 in gross rent
- Total monthly payment (PITI): $3,588
- $400 set aside for maintenance and capital expenditures
- Result: Jeff lives rent-free in the third unit
Even more impressive? When Jeff eventually moves out, he projects nearly $20,000 in annual cash flow.
The takeaway? Don’t let high interest rates scare you away from house hacking. If House Hacking poster child Jeff White can still make it work in 2024, there are likely opportunities for other savvy investors willing to crunch the numbers and think outside the box.
Interested in following in Jeff’s footsteps? Connect with Jeff White to explore house hacking possibilities in your area. The dream of living for free while building wealth through real estate is still very much alive.
Timestamps
(01:20) Denver and Colorado Springs Real Estate Trends
(09:56) Success Story: Multifamily Deal in Denver
(18:27) Rental Property Deal in Colorado Springs
(27:17) Interest Rates and the Possibility of a Rate Cut
Links from the Podcast
Nova Home Loans: https://troyhowell.novahomeloans.com
Email Troy Howell: [email protected]
- LinkedIn: Troy Howell
Email Jeff White: [email protected]
- LinkedIn: Jeff White
- Denver June 2024 Real Estate Market Updates
- Colorado Springs & Pueblo June 2024 Real Estate Market Updates
Who is Nova Home Loans?
For over 40 years, we’ve been focused on helping homeowners find the perfect loan to fit their financial needs and personal goals. Working with NOVA is a personalized experience from initial application to final loan closing and beyond. We will be with you every step of the way toward successful homeownership. Start working with NOVA & Troy Howell today!
NOVA FINANCIAL & INVESTMENT CORPORATION, DBA NOVA HOME LOANS NMLS 3087/ EQUAL HOUSING OPPORTUNITY/8055 EAST TUFTS AVENUE, SUITE 101/DENVER, CO
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