Newbie in Roseville, CA (Rent By The Room Strategy?)

Lender · Milpitas, CA · Member since 2016 · 376 posts · 248 votes

Hi @Chelsea Luciani, congrats on making the first step and getting into REI! House hacking is an amazing strategy to buy real estate while lowering your cost of living expenses. I did it for 5 years when I first moved back to the Bay Area, and it set me up to buy even more investments! The only thing you should look into is the roommate situation and making sure you have the right people that you don't mind living with in the home. Best of luck!

0 Reply

Jo-Ann LapinPro Member

Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes

5y

For sure picking the right roommate is key and can be so rewarding . A win win for all. Welcome to the industry and happy to network and assist .

[email protected]

0 Reply

Chelsea Luciani

OP

Financial Advisor · Roseville, CA · Member since 2020 · 7 posts · 3 votes

5y

Thank you so much. I will definitely keep that in mind!

0 Reply

Chelsea Luciani

OP

Financial Advisor · Roseville, CA · Member since 2020 · 7 posts · 3 votes

5y

Originally posted by @Jo-Ann Lapin:

For sure picking the right roommate is key and can be so rewarding . A win win for all. Welcome to the industry and happy to network and assist .

Thank you so much, Jo-Ann!

0 Reply

Dmitriy Fomichenko

Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes

5y

Originally posted by @Chelsea Luciani:

Hey BP family!

My name is Chelsea and I live in the Sacramento CA area. I have a BA in business, I am a licensed real estate agent and I'm currently working as a mortgage consultant assistant (while I wait for my NMLS license to be approved).

Given my obvious love for learning & my ultimate vision of achieve financial freedom, I'm OBSESSED with all things related personal development, business, and Real Estate. I spend the majority of my time consuming as many books, podcast, and YT videos I can get my hands on.

After carefully considering all the different investing strategies, I've come to the conclusion that it'd best to pursue the rent-by-the-room strategy (since Sacramento area is only getting hotter).

I've been analyzing single family homes with 5+ bedrooms, 3+ bathrooms in A/B class neighborhoods lately and I've found a great deal that falls within my criteria (200+ cash flow & 12%+ COC Return). Excuse newbie question, but what are some other metrics that I should consider when using this strategy?

I'm also open to any feedback on this strategy or if anyone has any experience with this strategy in the Sacramento area, please message me, I'd love to connect!

Lastly, I just want to say how truly grateful I am too have found such a wonderful community of real estate professionals. I can speak on behalf of everyone just starting on their REI journey, the amount of value & insight you all give is greatly appreciated. Thank you so much!

You are in a good company Chelsea!

0 Reply

Mark Pedroza

Real Estate Agent · Sacramento/Placer ~ San Francisco Bay Area counties · Member since 2012 · 1k+ posts · 743 votes

5y

@Chelsea Luciani

I used to reside in Roseville on Ash St just opposite the train station. I've always enjoyed old town Roseville and the immediate area as well.

For further related connections @Sergey Tkachev has a monthly meet-up in which the next one is in March, and you'll get more information on house hacking as there are other local Sacramento area investors in the group as well..

Warm regards and good luck..

0 Reply

DJ DawsonBusiness Member

Real Estate Agent · Sacramento, CA · Member since 2015 · 394 posts · 259 votes

5y

@Chelsea Luciani I would make sure you have a PM if your roommates are going to be random & you act like a roommate yourself to avoid them asking you for every little thing

0 Reply

Chelsea Luciani

OP

Financial Advisor · Roseville, CA · Member since 2020 · 7 posts · 3 votes

5y

Originally posted by @DJ Dawson:

@Chelsea Luciani I would make sure you have a PM if your roommates are going to be random & you act like a roommate yourself to avoid them asking you for every little thing

That’s a great idea. I was considering that option too. Do you happen to know any PM’s that are willing to manage rent by the room properties or where I can start looking? Thank you I’m advance!

0 Reply

Chelsea Luciani

OP

Financial Advisor · Roseville, CA · Member since 2020 · 7 posts · 3 votes

5y

Originally posted by @Mark Pedroza:

@Chelsea Luciani

I used to reside in Roseville on Ash St just opposite the train station. I've always enjoyed old town Roseville and the immediate area as well.

For further related connections @Sergey Tkachev has a monthly meet-up in which the next one is in March, and you'll get more information on house hacking as there are other local Sacramento area investors in the group as well..

Warm regards and good luck..

Yes, I enjoy living in Roseville too. I live right off of Blue Oaks Blvd & Crocker Ranch Rd. My main concern is that Roseville (from my experience) attracts more individuals that are more established in their careers and have started their families. The rent by the room strategy will be geared toward young working professionals that are just starting out in their career with no interest in starting a family just yet.. Any thoughts?

Should I focus more on Sacramento area because of this?

Thank you so much, Mark! I truly appreciate it!

1 Reply

Chelsea Luciani

OP

Financial Advisor · Roseville, CA · Member since 2020 · 7 posts · 3 votes

5y

Originally posted by @Dmitriy Fomichenko:

Originally posted by @Chelsea Luciani:

Hey BP family!

My name is Chelsea and I live in the Sacramento CA area. I have a BA in business, I am a licensed real estate agent and I'm currently working as a mortgage consultant assistant (while I wait for my NMLS license to be approved).

Given my obvious love for learning & my ultimate vision of achieve financial freedom, I'm OBSESSED with all things related personal development, business, and Real Estate. I spend the majority of my time consuming as many books, podcast, and YT videos I can get my hands on.

After carefully considering all the different investing strategies, I've come to the conclusion that it'd best to pursue the rent-by-the-room strategy (since Sacramento area is only getting hotter).

I've been analyzing single family homes with 5+ bedrooms, 3+ bathrooms in A/B class neighborhoods lately and I've found a great deal that falls within my criteria (200+ cash flow & 12%+ COC Return). Excuse newbie question, but what are some other metrics that I should consider when using this strategy?

I'm also open to any feedback on this strategy or if anyone has any experience with this strategy in the Sacramento area, please message me, I'd love to connect!

Lastly, I just want to say how truly grateful I am too have found such a wonderful community of real estate professionals. I can speak on behalf of everyone just starting on their REI journey, the amount of value & insight you all give is greatly appreciated. Thank you so much!

You are in a good company Chelsea!

Thank you, Dmitriy!

0 Reply

DJ DawsonBusiness Member

Real Estate Agent · Sacramento, CA · Member since 2015 · 394 posts · 259 votes

5y

Originally posted by @Chelsea Luciani:

Originally posted by @DJ Dawson:

@Chelsea Luciani I would make sure you have a PM if your roommates are going to be random & you act like a roommate yourself to avoid them asking you for every little thing

That’s a great idea. I was considering that option too. Do you happen to know any PM’s that are willing to manage rent by the room properties or where I can start looking? Thank you I’m advance!

hmmmm not to sure about that tbh, even if its just a friend who acts as such would probably bode well for you, and just want to say you are WAY ahead of most people who will even take this journey, don't overcomplicate the which home to buy part, this market is so difficult as is, finding something that allows you to reduce expenses + build equity is a win-win. This is your FIRST house not your LAST house so just remind yourself of that, you probably won't even be living in it 5 years down the road anyways right :)

good luck!

0 Reply

Chelsea Luciani

OP

Financial Advisor · Roseville, CA · Member since 2020 · 7 posts · 3 votes

5y

Originally posted by @DJ Dawson:

Originally posted by @Chelsea Luciani:

Originally posted by @DJ Dawson:

@Chelsea Luciani I would make sure you have a PM if your roommates are going to be random & you act like a roommate yourself to avoid them asking you for every little thing

That’s a great idea. I was considering that option too. Do you happen to know any PM’s that are willing to manage rent by the room properties or where I can start looking? Thank you I’m advance!

hmmmm not to sure about that tbh, even if its just a friend who acts as such would probably bode well for you, and just want to say you are WAY ahead of most people who will even take this journey, don't overcomplicate the which home to buy part, this market is so difficult as is, finding something that allows you to reduce expenses + build equity is a win-win. This is your FIRST house not your LAST house so just remind yourself of that, you probably won't even be living in it 5 years down the road anyways right :)

good luck!

That's a great idea, I'll look more into that!

You're absolutely right. I'll be sure to keep that in mind. Thank you so much (:

0 Reply

Newbie in Roseville, CA (Rent By The Room Strategy?)

12 Replies