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Dealsletter Issue #24: Unlock House Hacks & BRRRR Opportunities

Maximize your investment with high-potential short-term rentals and multi-family properties in California and Texas.

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Hello Investors,

Welcome to Dealsletter Issue #24! We're rolling out new, limited-time increased investment metrics like 5-10 year returns to help you make smarter long-term investment decisions. This issue is loaded with tons of investment potential. Since house hacking is all the rage these days, we've included 2 awesome house hack opportunities that are also great long-term investments. Plus, we've got a combo investment property that can be a house hack, BRRRR, and long-term rental. Let's dive into this issue!

🏠 Share the Love: If you're enjoying the insights and deals, why not spread the word? Forward this newsletter to friends and fellow investors. Don't let them miss out on these golden opportunities!

🚨 Note on Numbers: We base our insights on a 25% down payment and the current interest rate of 6.54%. Rest assured, we've crunched the numbers so you can focus on the core β€” the deals.

πŸ‘‰πŸΌ Stay up to date: What’s the latest on mortgage rates?

πŸ“ˆ The Stats: Each listing comes with detailed investment metrics like cap rates, GRM, and special financing options where available.

This Weeks Deals 🏘️

  1. Multi-Family in Kansas City, MO

  2. Short Term Rental / House Hack in Julian, CA

  3. House Hack / BRRRR in Escondido, CA

  4. House Hack or BRRRR in Austin, TX

Multi-Family

$995,000

7 Unit Apartment / Unit Mix of 2 Bed / 1 Bed Units / UNDER $1mil !

Why this is a good investment πŸ‘‰πŸΌ : This property offers a prime location in the heart of Kansas City’s walkable Valentine neighborhood, close to major hospitals and employers, making it highly attractive to potential tenants. 7 Units available and listed under $1mil! The building features spacious units with modern renovations and luxury amenities, ensuring a strong rental demand. With a high cap rate of 9.1%, strong monthly revenue, and significant long-term returns, it promises excellent income potential and investment growth.

The Stats πŸ“

  • Cap Rate: 9.1%

  • Monthly Revenue(Pro Forma): $9740

  • Operating Expenses: $1213

  • NOI: $7553

  • GRM: 8.51

  • Cash Flow: STRONG

  • (NEW) 5 Year Return: 99.1%

  • (NEW) 10 Year Return: 263%

Ease into investing

Ease being the key word. With automated tool like portfolio rebalancing and dividend reinvestment, Betterment makes investing easy for you, and a total grind for your money.

Short Term Rental / House Hack

$1,080,000

Main House (2/1) + 4 Cabins (1/1)

Why this is a good investment πŸ‘‰πŸΌ : This property offers an amazing opportunity to live in the main house and rent out the 4 cabins on platforms like Airbnb or VRBO. The property is already being used as an Airbnb, and with the sale, you'll gain access to the seller's Airbnb profile, which currently has 5 stars and a Superhost status. It’s super easy to take over and continue, saving you the time and effort of building your own profile from scratch. Plus, the revenue from the cabins can essentially allow you to live for free in the main house, or at the very least, help pay down your mortgage!

The Stats πŸ“

  • Cap Rate: 5.9%

  • Gross Revenue: $8000/mo

  • Operating Expenses: $1920

  • NOI: $5280

  • Occupany Rate: 70%

  • Effective Mortage: $1908/mo (factors ALL expenses and occupancy rate)

House Hack / BRRRR

$1,549,000

Unit Mix of (3) 3 Bed / 2.5 Bath, (1) 2 Bed / Office / 1 Bath

Why this is a good investment πŸ‘‰πŸΌ : This property is a fantastic investment opportunity, whether you're looking to house hack or rent it out. We've found the best strategy with this place is using the BRRRR method, no matter if you're house hacking or not. Basically, you use a hard money lender to cover the rehab costs, then refinance to get most of your cash back. You can either live in one of the units, cutting your mortgage significantly, or rent it out completely for the long term. The cash back, instant appreciation, big tax deductions, and high demand area make this the perfect BRRRR for a seasoned investor.

The Stats BRRRR into House Hack with HML @ 10% Down πŸ“

  • Cash Needed: $195,000

  • Rehab Costs(Covered by HML): $220,000

  • 6 Month Holding Costs: $94k

  • ARV: $2.5mil

  • Refinance Cash out: $135,000

  • Total Cash Invested: $59k

  • Effective Mortgage Renting (3) 3 Bed units: $3450 (Include operating expenses, vacancy of 10%, taxes, insurance, etc.)

  • Monthly Revenue: $11,700

BRRRR into Rental πŸ“

Most stats are the same as above besides:

  • Monthly Revenue Fully Rented: $14,700

  • Operating Expenses: $2158

  • NOI: $11,072

  • Cap Rate: 8.9%

House Hack OR Long Term Rental

$995,000

6 Units: (6) 1 Bed / 1 Bath, (1) 2 Bed / 1 Bath

Why this is a good investment πŸ‘‰πŸΌ : This multi-family property in Austin, TX is a fantastic opportunity for a house hack or a long-term rental! Currently, it's fully occupied, so one of the residents would need to move out for you to live there. Don't worry, it's completely legal since you'll be using it as your primary residence. Once you're in, there's great potential to increase the rents to market rate, making your mortgage much more affordable. Owning a 6-unit property like this means you'll benefit from strong appreciation, tax deductions, and more. And if house hacking isn't quite your style, no problem! This property cash flows with 25% down and offers excellent long-term investment potential!

The Stats w/ 5% down (House Hack) πŸ“

  • Cash Needed: $79,600

  • Gross Rent: $7000/mo

  • Operating Income: $6300/mo

  • NOI: $4060/mo

  • Effective Mortage after all expenses: $1600/mo

  • Cap Rate: 4.9%

The Stats(Fully Rented @ 25% Down) πŸ“

  • Monthly Revenue: $8250

  • Operating Expenses: $2300/mo

  • NOI: $5060

  • Cap Rate: 6.1%

  • GRM: 10.05

What’s Brewing at Dealsetter β˜•οΈ

  • Extended Listings: Discover exclusive properties that aren't listed elsewhere.

  • ROI Deep Dive: Understand the financials in-depth β€” from cash flow to occupancy rates.

  • Yearly Projections: Make informed decisions with our smart investment forecasts.

  • Buy & Hold Analytics: Get the long-term metrics essential for sustained growth.

  • Your Voice, Our Action: Your feedback is our guiding star. Keep the suggestions coming!

A Big Thank You! πŸ™Œ

We're immensely grateful for our early subscribers. Your trust and engagement are the fuel that drives Dealsletter. We promise to keep delivering top-notch real estate insights and deals.

Until next time,

The Dealsletter Team