When we first toured this Grafton property in 2022, what struck us wasn’t just its size — nearly 5,000 square feet — but its untapped potential. On paper, it was listed as a two-family home with an in-law suite. In reality, it was a blank canvas. The bones were strong, the location was solid, and the in-law suite gave us an opportunity to create something more than just another duplex.
We purchased the property for $700,000, knowing that the real value wasn’t in what it was, but in what it could become.
The Vision
The question we asked ourselves was simple: how do we take an already big property and make it work harder? The answer was to turn it from two units into three by giving the in-law suite its own identity.
This strategy had several advantages:
- More rental income streams to spread out risk.
- Stronger property value by increasing usable, rentable space.
- A path to house hacking — where rental income could cover most (if not all) of our living expenses.
Renovation Plan
Every unit needed a different level of attention. Instead of doing a blanket renovation across the whole property, we tailored the upgrades to each unit’s needs:
Secondary Unit (Cosmetic Updates)
Not every unit needs a gut job. This one got a lighter touch — fresh paint, new flooring, and small improvements that made it brighter and more appealing. Cost-effective, but enough to justify a healthy rent.
Main Unit (Full Gut Renovation)
This was the biggest project. We stripped it down, rebuilt the interior, and gave it a complete facelift. New kitchens, bathrooms, flooring, and systems. The result was a modern, highly desirable space that allowed us to raise the rent while keeping the tenant happy enough to stay.
In-Law Suite (Modernized & Updated)
This was the game-changer. What had been an underutilized side space became a fully independent apartment with its own entrance, updated finishes, and functional layout. Suddenly, we had a brand-new income stream without expanding the property.
Renovation & Rental Impact
| Unit | Work Done | Rental Outcome |
| Main Unit | Full gut renovation | Tenant stayed with higher rent |
| In-Law Suite | Modernized & updated | Became a fully separate rental |
| Secondary Unit | Cosmetic updates | Reliable rental income maintained |
By splitting the home into three income-generating units, we effectively turned one purchase into a small multi-family portfolio.
Property Value Growth
| Metric | Value |
| Purchase Price | $700,000 |
| Current Value | $1,050,000 |
| Equity Gain | +$350,000 |
Living for Free: The House Hack Advantage
What makes this project even more rewarding is the way it changed our monthly finances. With all three units occupied, the combined rental income covers 100% of the property’s carrying costs. That means the mortgage, taxes, insurance, and upkeep are all paid for by the tenants — leaving us with virtually no out-of-pocket housing expense.
This is house hacking in its purest form: using real estate not just as an investment, but as a way to live more affordably while still building wealth. It’s a strategy that gives you breathing room every month, and at the same time, positions you to scale into future opportunities.
Lessons from Grafton
Looking back, this project reinforced a few key lessons that any investor or first-time buyer can take away:
- Don’t overlook hidden space. An in-law suite, basement, or oversized layout might be the key to an extra rental unit.
- Renovate with intention. Go all-in on units where you’ll see the biggest jump in rent or value, and keep other upgrades simple.
- House hacking reduces risk. When tenants cover your living expenses, you’re free to grow without the stress of high monthly bills.
- Cash flow and equity go hand in hand. Beyond living for free, this property gained $350,000 in equity in just a few years.
The Grafton project is proof that creativity and strategy can transform an ordinary property into a long-term wealth builder. By reimagining the layout, tailoring the renovations, and leaning into the house hack model, a standard two-family became a three-unit income property that pays for itself and grows in value year after year.
If you’d like to explore how to achieve the same for your next investment, schedule a consultation with The Mejia Group — we’ll help you find and unlock the opportunities hidden in plain sight.
