Seeking House Hacking Advice

[Jonathan Viero]

Three weeks ago purchased a single family home in Running Springs, CA. I need help figuring out what strategy of house hacking I will use. My loan is a conventional primary residence mortgage. I will need to live on the property and am trying to figure out how to house hack this deal.

Here are my expenses

$1895 for Mortgage, Insurance, and Taxes

$350 Average Monthly Utilities

Total Monthly $2255

The house is 4 bedroom, 3 bath, that would could rent full time for $2300. I am considering renting it by the room, by the room on Air BNB, by the bed to utility workers, or by the room to the elderly. I have run general numbers on each of these strategies and could use some guidance of which strategy to go for.

#1 Renting it by the room: 

$800 each for the two main floor bedrooms (including utilities)

$1000 for the master

Total Monthly $2600

#2 Renting it by the room on Air Bnb

(Best Case Scenario) At 80% occupancy charging on average $95 per room = $2000 per room

Total $ 6120

(Worst Case Scenario) At 50% occupancy charging on average $75 per room = $1000 per room

Total $ 3000

#3 Renting Beds to local Utility Workers

3 Twin Beds in the Master Each $600 per month

2 Bedrooms on the main floor each $800 per month

Total Monthly $3400

#4 Renting to the elderly 

$1200 for the master

$1000 for each main for bedroom

Total Monthly $3400

I will be staying in the basement and renovating each bedroom (got to take of wall paper and paint) over the next couple months. So I could use some flexibility with being able to work on the house. I am limited on capital so I juggling how I am going to pay the margate and fix the place up while finding rental income. My other concern is management time as I am a full time real estate agent and am very busy. Let me know your thoughts.