We’re back with another episode of House Hack Mastermind. Guests Kyle and Tiffany join co-host Jeff White and me to discuss their first house hack, a duplex in Englewood. They faced some hurdles during the transaction process, but are settled in and ready to continue their investing journey.
- Listen to the podcast “#372: Lessons Learned from First Time House Hackers in an Englewood Duplex” on the Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom).
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
Overcoming Hurdles During Closing
Kyle and Tiffany found a property in Englewood to set up as a house hack. Originally a single family home, it was converted into two apartments. There’s a 2 bed/1 bath upstairs, and a 1 bed/1 bath downstairs. Each unit has its own entrance, along with a kitchen and laundry room. The turnkey home is located in a nice area and close to two hospitals.
The property was still classified as a single family home, so they planned on using the Bank of America grant program to help with the down payment. This is a great program that gives home buyers an extra boost to their down payment and closing costs. Applicants need to fall below the income requirements and buy a home in a designated area.
However, they ran into a roadblock when the city of Englewood reclassified the home as a duplex as they were in the middle of closing. The grant program can’t be used on duplexes, so they had to pivot to an FHA loan. Without the grant program, they see this property as a solid base hit, rather than the homerun they expected with the grant.
Taking Advantage of Location with a Medium Term Rental
Because the duplex is close to two hospitals, they’ve had a lot of interest from traveling nurses. Since they started renting out the downstairs apartment, they’ve had almost no vacancy, and tenants are paying most of their mortgage!
They use a property management company to find tenants and run the unit. The company takes care of everything, from listing the property on Airbnb to providing extra linens and snacks. They appreciate that their rental is completely hands off and charges reasonable rates.
Once they move out, they plan on putting long-term tenants into the upstairs unit and continuing the medium term rental model on the downstairs unit. They also have the option to rent the upstairs unit as a medium term rental, as well.
Connect with Kyle and Tiffany
Real estate investing wasn’t on their radar before they moved to Colorado, but now they’re excited to continue building their portfolio. For their next property, they plan on trying to use the Bank of America grant program again and continue their house hacking strategy.
If you want to connect with Kyle or Tiffany, you can contact them:
Connect with Us
If you are interested in learning how to house hack, reach out to me for a house hacking coaching session.
You can also connect with Jeff to learn more about self-managing strategies your long term rental: firstname.lastname@example.org or 720-951-6868.
To learn how to operate your own short or medium term rental, check out my new online course, Step by Step Short Term Rentals. If you’re an Envision Advisors client, reach out to me to get the course for free!