All Forum Posts by: Andrew Powers

Congrats! How have the roommates been an issue? Is there something that you learned... a different house layout works better, roommate screen process, house rules, lease? Curious as I and many others rent or are thinking of renting to roommates

I agree with the above, and look at craigslist as well for room rentals. See comparables to your available room's size, pre furnished or not, separate bath, location of house, etc. Often times depending on the area, a room rental house will produce more income than traditional rental... so for your 2 bedroom house for example, the price of one of the rooms may be 60% of a traditional rental. Best to check how the room renting market is to confirm

1 option is to back out... is that something you are considering? Of course depends on where you are in the process (ie does your accepted offer allow backing out per inspection or appraisal?). If you are past the inspection and appraisal, you could technically back out before closing BUT that doesn't look good!!

The other option is to reduce the projected repair cost as much as possible, and focus on increasing the ARV as much as possible. Investigate how appraisers in your area value houses and use that to your advantage... sq ft, bd / ba count, materials used in kitchen or bath, etc ... I haven't done this myself but are all examples I've hear with success in the forums depending on how appraisals work in your area. For example, if home values increase greatly just by having luxury tile in the bathrooms, do that!

Is there something creative you can do with the property to have higher ARV? Can you target finding cheaper / used materials on FB marketplace, craigslist?

I recommend reaching out to multiple lenders and get a response. Try local banks and talk with them about how to become eligible for a loan. You may not be far off depending on prices in your area and your work history/ credit. 

If not, there are other avenues which can depend on your strategy. Are you looking to buy a move in ready house to house hack? Or something that needs work / rehab?

Congrats! Are the repairs complete, any learnings? Are the units rented yet?

I agree witht the above posts, most seem to either self manage or pay a premium on room rental property management. Typical PM companies do not specialize in room rentals so maybe that's a contributing factor to higher prices (along with more management of course)... perhaps there's opportunity for a PM niche specializing in room rental properties...

Good tips above. You can ask for rent roll, and make sure there is an estoppel clause for tenant rent rates. I'd suggest having your own lease agreement, or if you can get the previous owner lease then add things to it you would like. Make sure it is reviewed by an attorney. There are also sample leases for each state available from BiggerPockets.

People sell for various reasons.. from headache tenants to they just don't want to do real estate anymore. Do your due diligence on the property and tenants to make the best decision possible.

 Welcome! I am in SE Michigan too. I know both those towns well. House hack is a great option! I house hack at 9 mile.

If you do single family, room renting works, just make sure the layout of the house and # bathrooms are satisfactory. I house hack a 4 bed 3ba house which has worked well.

There isn't as much multifamily openly available on the MLS in those towns and if so they're often pricey. But if you can find the right one that'd be awesome.

Feel free to reach out and good luck !

 I agree, engineers often look at the numbers and sometimes struggle with pulling the trigger. I remember in college one of professors saying, "don't let great get in the way of good enough"... I agree, especially when "good enough" keeps the momentum moving forward instead of sitting on the sidelines waiting for the perfect deal!

I am a mechanical engineer. I find the skills from my engineering education and job experience directly relates to REI. Skills that carry over: deal analysis, physical property analysis, REI systems building, dealing with ambiguity, pugh matrix, decision-making abilities... just to name a few!

An engineer, opposite of popular belief, needs to be a people person... in REI, having a great network, partners, etc is key to growth.