Northglenn House Hack- Case Study

This case study was discussed in the December Monthly Roundup Podcast.

Property Details:

  • 5 Bedrooms
  • 3 Bathrooms
  • Sold Price: $375,000

This unique home in North Denver presents a great opportunity for house hack and a long term cash flow investment. The new owner has the ability to have a tenant in the house while still maintaining their own private living space. The house is split into two levels much like a duplex would be with both floors having their own entrances and kitchens. The house features 3 bedrooms and 2 bathrooms on the first floor and the lower level has 2 bedrooms and 1 bathroom.

One of the previous owners converted the garage into a bedroom and did an excellent job on the remodel. The exterior brick that replaced the garage door matches with the rest of the house to give cohesive curbside appeal. The current basement layout could easily be modified to include a third bedroom. An interior wall with a door along with an egress window would need to be added to accomplish the lower addition. The new owner also plans on updating the lower kitchen to maximize potential monthly cash flow from the unit once he moves out of it.

The Numbers:

The new owner of the house has already rented out the top level and is currently living in the bottom half of the house. He had so much demand when he put the house on the market at $1750 per month that he decided to bump it up to $1825 and still go it rented out almost immediately. He also has a roommate with him on the lower level who pays an additional $500 per month. After all of the expenses, he is only paying about $176 per month, while this is not completely free it doesn’t include the benefits of owning the home. Tax incentives, depreciation schedule, and appreciation of the property value. After he moves out and is able to rent both units he should conservatively be able to get $2825 per month, which translate to a 15% cash on cash return. That’s with only 5% down! This property should make for an excellent long term investment for the new homeowner.

Analyze Before You Buy
Start Evaluating Properties Today with Our Free Toolkit
In a rapidly changing market, having the tools you need to help you analyze the data is critical. Know what the numbers will look like ahead of time so you don't buy a bad deal. Our toolkit is designed to help you thoroughly analyze any kind of deal so you can invest with confidence.
Start analyzing your Colorado investment properties today
Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Start analyzing your Colorado investment properties today
Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Authors
Chris Lopez
Chris Lopez is a Denver area real estate entrepreneur and investor, as well as the host of Bigger Pockets’ House Hackerz and the Denver Real Estate Investing Podcast.
Similar Post You Might Also Like
Market Update - Denver
How to Find Cash Flowing Deals | Colorado Real Estate Market August 2023
August 2023 Colorado Real Estate Market: What it Takes to Cash Flow Today
Denver
Denver August 2023 Real Estate Market Updates
Stay informed and make sound investment decisions with our comprehensive analysis of the latest August 2023 real estate market updates
Sign Up For Our Newsletter
What do you want to learn today?

All registrants get the recording sent to them automatically.