All Forum Posts by: Alejandro B Yoon

I just had an extremely similar situation with my househack. 

Previous owners rented out to a family with 6 kids. Sharpie and crayon everywhere. As everyone else has said, definitely clean first (light scrub with soap and water and large sponge). 

You don't need to sand, but it will help with adhesion. Definitely sand imperfections and residue that you can't clean off. Clean again to wipe off dust.

I used "Zinsser Cover-Stain" primer; this stuff is thick and smells like battery acid. It will make your walls look like nothing ever happened; It's not the cheapest but I highly recommend. After that paint whatever color you like

The total cost of materials, priming, painting and cleaning the walls my 2400sq ft home was ~$500 dollars and ~10 hours of work by myself. Enjoy that sweat equity!

I've heard different opinions from different lenders. I really think it is up to their discretion, level of trust with you, and comfort. 

The current lender I have has told me that I can buy a house across the street from my current househack when I qualify again. Larger/smaller he doesn't care.

I started househacking in Houston with 0 prior knowledge of the Greater Houston area. Here is what I did to find my househack which cashflows. Many of these tips will be considered common sense by others, but your question is very vague so here goes:

- Look at crime rates, school districts, proximity to malls/shopping areas.

- Average wage/employment rate in the zip code.

- DRIVE to the area and look around, Are there metal bars on house windows/doors? New development? Trendy restaurants/bars?

- Rentometer, zillow, apts.com, realtor.com and MLS to look at rent comps.

- Talk to your Real Estate agent.

Ultimately no one is going to tell you the "next emerging Houston neighborhood" if you don't provide any value to them or figure it out yourself. 

Best of luck. Keep us updated when you close on a property.

Ultimately it all comes down to understanding where you are investing in. The easiest thing would be to talk to a reputable agent and get their opinion but here are also a few things you can look at too.

- Population charts, avg wage, and days on market of different properties.

- Are most neighbors renters or owners?

- distance to major shopping areas/good schools.

- Look at google earth at different years and see where development has been created; things like new apt's, neighborhoods, and malls. (also be aware of new construction)

Remember, appreciation is not guaranteed, so make sure you will save money on rent and eventually cash flow after moving out if things don't turn out how you expect them.

Best of luck!

The go-to book that everyone knows is Craig Curelop's "The House Hacking Strategy: How to Use Your Home to Achieve Financial Freedom".

Reality is you don't need to purchase a book to understand how to househack. The idea is pretty simple to understand, there are also endless Youtube videos explaining how and what to do. 

I don't know the age, income, or any further details on your tenants. But here are a few ideas.

Seller Finance

- If they can afford it you can create a note, and have some sort of balloon payment so they can purchase the home from you. If they fail, you can regain control and sell it on the MLS. Win-win for everybody if they can afford a larger payment with interest.

Allow them to stay MTM but warn them

- Notify then that you will be putting the house in the market, put them in month-to-month leases, and warn them that if their rent is not up to market it almost certainly will be by the new owners and/or the owners may end their lease and not renew.

End the lease

- End their lease, assuming they were very good tenants and you have a relationship with them, I would help them find a new place, and vouch for them in their application. Maybe also invite them to a lunch or buy them some sort of gift to thank them.

This is a tough spot to be in, and these ideas have varying levels of care/warning. Best of luck Marci!

The type of home (multi or SFH) you buy doesn't make it a "smarter" or "dumber" deal. The easiest way to view it with Househacking is; the more uncomfortable you are willing to be, the more you can potentially cashflow RIGHT NOW.

Buying a duplex may offset living expenses, and may be a few hundred dollars cheaper than renting. This is very desirable since you can comfortably live with a girlfriend/dog/whatever, and not lose comfort.

Buying a SFH, building rooms, renting every room and sharing your room will almost certainly cashflow in most markets (outside of VHCOL cities). I personally am doing this, and cashflowing a few hundred dollars a month after expenses. I purchased with a 6.5% rate.

Either way, rents will increase and you will most likely cashflow in the future. Househacking is so powerful since you can lower your largest expense (rent), while learning to be a landlord and building equity.

UPDATE: I ended up paying $1000 for a guy to frame, insulate, texture, and install matching baseboard on the new wall. I opted to paint it myself. He was the lowest quote and did a great job. I had quotes ranging as high as $2200 for the 11' x 8' wall. I already have a tenant who will be moving into the room only a week after the room has been completed for $550 a month. 

It will take me less than two months to recoup the cost of the improvement, but will generate an extra $6,600 in yearly revenue. Providing me with a 660% cash on cash return. 

Lease templates are free online. They are pretty simple and standard, but I would recommend reaching out to some sort of property manager and maybe paying a fee to understand how to fill them out if you need guidance. Written leases are vital in protecting your home; verbal leases are a recipe for disaster. You can make up any and all the rules and fine tenants for not following them.

Look through facebook marketplace and roomies.com to find what market rates for rooms in your area can be. Some include utilities, some don't. It is up to your discretion. I personally don't charge utilities, as many renters don't like having some sort of variable payment. However, I have many controls to prevent overuse of utilities (locked thermostat, fees for excessive electric consumption, hot water in certain hours). Although it may sound harsh, a large bill can kill cashflow for the month.

As for the extra income, talk to your CPA/a tax professional, your scenario may be different than mine.

Keep us updated as things move on!!

No need to get complicated; Most bankers would have no idea what a househack is, many might scoff since it sounds silly. You also don't need to disclose what you plan to do with the home you plan to buy. 

I would just drive or make a few calls and talk to multiple lenders/brokers from different banks and shop for the best rate. They will be happy to talk to you.

Getting a Real Estate agent familiar with Househacking would be more important as they may have more experience with the nuances of your market.

Best of luck and keep us updated!