New with New IDeas

[Brandon West]

Hey there BP,

Im pretty new to the real estate game and am looking for advice. I currently own a Duplex that cash flows 400 per month and am in contract on a SFR that should do about the same. I am a commercial Pilot for an airline that is based on the east coast and spend a lot of time in the ohio and northern Kentucky area.

I currently have an idea to make a little cash on the side doing a house hack and I thought i would share it with the group. I found a landlord who is ok with the idea so well get that out of the way upfront. Being a pilot I am intimately familiar with the need for housing that is available to commuters (people living in another state and only need a place to stay a few nights a month) as a crash pad. These crash pads usually have multiple beds per room and charge by the month. It works out because everyone is on very different schedules and is usually not in the house at the same time. 

The numbers

Rent+Utilities(4 bedroom house) -1250/month

Total Beds possible- 10 @ 250/month Total 2500

Total cost to furnish house- 5500

Time to recoup investment - 2.6 months

Total ROI 300%

Systems in Place to Manage

Keyless lock to remotely change codes on a month to month basis

Invoice via Paypal and venmo

cleaning service once a month

local handyman to take care of small repairs otherwise the landlord would be responsible

I have been debating on buying my own place to do this however I thought I would try it out by renting for the first year. I am marketing to my own company via internal company websites and have had good responses. I am debating on whether to sign leases with the people or go without a lease (other crash pads I have seen do not require a lease, however I am definitely going to do background checks). Also wondering how the tax situation would work and if I would need to report the income or not. 

Any advice would be welcome.

Thanks

[Kathleen Bassett]

Welcome to BP @Brandon West! That sounds like a great idea, like a long term version of airbnb. Feel free to contact me if you are looking to invest more in the NE Ohio area. Best of luck to you, Kathleen