All Forum Posts by: Ben Einspahr

@Sean Link very wild story for the first HH! Glad to hear that the sellers were very understanding of both the situation and the factors outside of your control. Sounds like great teamwork by all parties ( buyer, seller, and both agents). 

They will not all be that difficult but I would be lying to you if I said each one of my transactions was a breeze. There is a lot of negotiation that goes on behind the curtains new investors can overlook.

This will be a story you can tell for years to come!

@Kaylee Walterbach love the concept! Looking to execute a very similar strategy. What is your plan for paying off the principle? 

@Devin Keener these guys have a 4 part podcast series coving REPS in extreme detail. If you go through these podcasts, it will tell you everything that you need to know and if it is a ealistig strategy tath you can successfully execute based on your unique scenario.

Below is the link to the first one of 4.

https://www.therealestatecpa.com/podcasts/history-of-469-pas...

best of luck!

@Sung Yu reading through all of the posts already made in this thread. Some great feedback already!
-@Matthew Masoud- see how the tenant takes care of their car

@Ryan Legat- see how long they have been on section 8 program

One last thing that I would add is ensure your RE agent is very familiar with the program that consist of more than "yeah, I know of it. Great program!" They should be able to help you navigate all of the nuances. 

If managed correctly, they can be a great strategy.

We recently did a BP property walk of one of our house hacking clients (turned agent) house hack that rented to section 8 in the basement walkout guest suite. Here are the details.

@John Kuhlman love the goal! I would focus on finding a good agent and securing financing financing first. 

Why an agent? A good agent that already has experience in the strategy you are looking to execute will be able to bring the team to the table. Flipping is not necessarily in our wheelhouse mainly because it is more of a active investing business model vs passive. 

Why financing? This will be a good reality check and help dial in your buy box. 

If interested, I have some case studies you will find interest in of recent buy and hold deals that took a good amount of rehab. Most of which were in Southern CO. Happy to share if interested?

@Matt M. cap x is built into maintenance. I understand how section 8 can get a bad rap. We have had a few clients successfully execute this strategy in the past. One of them being @jeffwhite. 

BP did a walkthrough of that property. Here is the link

@Maria Matthew by now I hope that you have came to conclusion what route to go with your MTR property. But, if you are still on the hunt for feedback here is my 2 cents.

When you say self-manage, how much of the business are your self preforming vs managing. If you are doing all of the cleaning and laundry, I would recommend a PM. 

On the other hand, if you self-manage and hire our cleaning and laundry (very common) but manage pricing, guest communications and any maintenance I would recommend continuing to self-manage. 

Coming from someone that self manages (from a 15 minute drive), here are are some of the challenges I run into not being onsite anymore:

- Exterior quality. Are trees overgrown, grass dying, snow removal, etc. I typically do a drive by once a week. Since you are not able to do that, I would rely on your cleaner for a second set of eyes. For some reason, if you do not trust their judgement have them snap a few photos.

- we planted a good amount of flower in the spring. Went we are out of town we will hire neighbor or handyman to water them (especially with the heat we have been going through)

-and a random one that is more of a pet peeve of mine. Make sure your furnace filters are getting replaced.

-Taking out the trash weekly

Regarding MTR PMs, I have found anywhere from 15%-20%. 20% seems to be more common. What is included in that fee depends on the company. It is safe to say they will be handling all cleaning, laundry, guest communication, pricing, and maintenance. 

Hope the helps

@Michelle Richardson love this strategy. Sounds like you are on the right track having each parent co-sign on the lease. One extra layer of protection to ensure tenants are taking care of property.

Items to include in lease:

-quiet hours

-designated parking

-designated food storage (cabinets + refrigerator) 

-no additional guests staying xyz nights or more out of the month.

-lawn and snow removal. 

Room by room rentals are not a nightmare. They they can be if tenant screening is poorly done business in not properly managed. 

Room by room screening tip: Start out with shorter lease lengths. This will help weed out bad tenants quickly and stay on top of market rent. 

@Annie Tran chiming in more on the conceptual aspect vs. the numbers you provided.

From my years of house hacking and helping others house hack there are 2 different types of avatars.

Avatar 1- Someone purchasing the house hack with the ultimate goal of turning the property into a future rental in 1-2 years, then on to the next. Repeating this process and slowly building their house hack stack.

Avatar 2- The lifestyle house hack. Someone that is just looking to decrease their living expenses and does not have any intention turning the property into a rental. Typically a family with 1-2 kids and can not easily pick up their things and move.

Question 1: What avatar do you identify with?

It is very easy to say go with the ADU house hack. You are buying a larger property that is increasing in value each year and tenants are helping pay down principle, and "most" expenses associated with the home can be written off.

Question 2: Are you comfortable with all of the nuances that come along with self managing? 

@Erika Martinez I have a good connection in the Denver Metro we refer to all of our clients. I will DM you the details.