All Forum Posts by: Bradley LaBrie

@Linda Jumat

Welcome to Genesee County! I work in flint and have invested in GC for several years. I’m also a licensed agent if you would like help searching! I have multi-family units in Davison- just East of Burton. There are definitely good price points and areas in Burton to buy. Flushing and Grand Blanc are also places I’ve had luck with! Let me know if I can help👍🏼

Congrats on choosing House Hacking! It has changed many people’s lives! You should connect with @Shaye Mora who’s doing big things out there! He came on our podcast and shared what he’s doing. Good guy to know!

Obviously the big box stores have frequent sales on engineered wood and laminate etc.. I’m looking for online retailers who also have these sales for rentals. Looking for a mid grade and I’m not finding the deals I’d like at Menards, Home Depot etc

Thanks in advance,

Bradley

@Greg M. Sure and that’s why I was asking before we talked with the department tomorrow.

@John Teachout ok so holdovers need to go through the same eviction process?

My investor buddy has a tenant that’s lease is up and they’re ghosting him. What rights does he have to remove them the day after the lease is up? Does he have to file anything? Any time period he has to wait? Thanks

@Jerard Graham no problem at all! Never hesitate to reach out if you have any questions. Best of luck 

@Jerard Graham perfect! I have house hacked twice now.

I always use these 6 formulas when doing basic numbers on a property.

The 1% rule- example is a $100,000 House should rent for around $1,000 per month

The 50% rule- 50% of the gross rents of the property will go towards expenses on the property that don’t include principal and interest payment.

Gross rent multiplier- similar to a P/E ratio where you take the purchase price and divide by the gross rents for the property 

Cap rate- tells us what a property will produce after expenses. You will divide the net operating income that you found in the 50% rule and divide by the total purchase price

Net income after financing costs-you take the net operating income and divide by the financing costs. You can find this with a basic online mortgage calculator 

Cash-on-cash return-you take the net annual income and divide it by the down payment you will put down on the property 

The best place I have found to figure what rents you can expect in your area is at rentometer.com

@Jerard Graham I had a decent amount saved but if you do a 203k to house hack like I did you don’t need as much in reserve because you lower your risk by having your tenants pay for your mortgage.

As far as the numbers you should know, I go by the back of a napkin criteria that Chad Carson uses also.

The biggest question is will this be a rental/house hack or a flip? That will determine what numbers to run.