First House Hack Questions

[Brady Pretzlaff]

I am a student athlete at Michigan state university and am planning on starting my investing career with my first house hack. I have spent the past couple years doing research and think its time to actually start. If there are any specific tips specifically trying to rent by the room house hack in a college, like things to look for in the house, how to estimate the correct rent, or anything similar to that i'd really appreciate the advice. 

[Anya Swanson]

Hi Brady, are you going to purchase a house? Or rent it? Go to furnished finder and airbnb to compare rents and determine your rate. It's pretty easy, just make sure you vet people you let into your house. If something feels off, or bad reviews, do not rent to them. You will have more specific questions when you start. Good luck! 

[Drew Sygit]

@Brady Pretzlaff I did rent arbitrage right after college w/o knowing that's what I was doing!

I rented a 4-bed house in Royal Oak, then got 3 roommates that I charged each 30% of the rent, so they covered most of my  rent.

You can do the same if you buy a house:

1) More rooms the better, if renting to fellow college students.
2) Can YOU live in the basement?
- You can rent out the bedroom you would normally occupy.
- Most cities do NOT care if an owner lives in basement, but will not allow a tenant to unless baement has legal egress window.
3) Check local statutes if any limitations on how many unrelated roommates are allowed.
4) Check with local building dept to see if rental inspections and corresponding requirements.
5) Local statutes allow locks on bedroom doors?
6) What parking requirements/issues will you run into?
7) You'll need a good "roommate" lease!

[Wale Lawal]

@Brady Pretzlaff

I think you should focus on properties close to campus with multiple bedrooms, adequate bathrooms, and parking for renting a room in a college town like near MSU. Research local market rates to set competitive rents, and consider offering utilities or furnishings to attract tenants. Use individual leases to reduce risk, screen tenants carefully, and set clear rules about noise and responsibilities.

Good luck!