The David Greene Team had the pleasure of working with our wonderful client in North Oakland, CA! Our agent, Johnny Hoang, stayed on top of the market and was able to secure a listing that was expiring for our client. How did finding this diamond in the rough turn out? Keep reading to find out about this ultra successful house hack!

Finding An Expired Listing

Our team was keeping a close eye on the market when they found a listing that was going off market. We called the expired listing and ended up getting the property into contract right at list price with a seller credit. Being such a fast-paced, competitive market with properties often going above list price, this was a huge win!

Our house hacking client was able to find this single-family home that had been turned into multiple units. This would allow him to occupy one unit while renting the rest. The rent from the additional units would help cover the monthly payment and expenses.

What Value Is Left?

Initially, our client was hesitant because this deal was being purchased from a flipper. He worried that the equity had already been completely extracted from the flip and wondered if there would be any opportunity for adding additional value.

Our client stayed open-minded and was guided by Johnny to dig further into the comps and review potential options for increasing the value. Based on the comps and a proposed plan (i.e. adding bedrooms and extra units) they felt the probability of the ARV (after repair value) coming in line with the comps with the higher bed and bath count would be accurate.

Forcing Appreciation With A Plan

Now feeling confident with their offer and future plans, they were able to secure the property. After closing escrow, our client ended up converting the garage AND adding more square footage. He turned the house he bought for $1.2 million into $1.4 million with forced appreciation within the first year of ownership.

And the best part is our client is able to use the equity to now refinance this property to buy another property! He put his property to work in order to line up his plans for future investments and can now reap the benefits by building his portfolio.

Congrats on this purchase and we can’t wait to help with the next one!