All Forum Posts by: Bryan Balducki

@Caleb Scott rent by the room works great where I am in Denver, and with a 5-6 bed, one can still cash flow. Renting by the room tends to exceed the cash flow of a duplex. I don’t know what state you are in, but I have had great experience with it and the tenants are great.

You could also considering short term rental in one side or splitting up a single family home into 2 units. This will also depend on if you are looking in a STR friendly area.

ADU could work but it would be more difficult to get a loan and funding it with cash may not make sense.

If comfortable living in an RV and renting out the whole house, that would work great. If you’re looking for an RV spot, then I would keep your eyes out for large lots and RV storage spots, or large driveways.

Good luck and go get it!

@Kwame Essieh you can quit claim deed your properties into an LLC. 95% of the time, this won't be a problem as long as the loans are still getting paid. There is a risk of them calling the loan due, in which case you'd have to sell or come up with the money, but those chances are slim. I'd consult with a specialist before hand, but many investors do this with no problems.

@Qwan Sanders buy a 2-4 unit in Tampa and house hack it! It may take 10-20 offers but you’ll find one eventually. Then, do the same thing a year later. House hacking is the best way to get started. You could look into short term rental as an option for increasing cash flow, but I don’t personally know the regulations in Tampa so do your DD. Congrats on wanting to move forward in life! If not Tampa, pick an area and stick with it. It’s easy to get overwhelmed by the many places and strategies, so create your vivid vision and dive in!

@Michael Cha my advice would be to buy another property with 5% down instead of waiting to save 20%. I would rather pay private mortgage insurance than put down 20%. I did the same thing for my first property and am break even on that condo. That condo deal taught me more than I could have ever learned from education, so I consider it a blessing!

@Sarp Ka I believe the best way to do this would be to stay off title and have a separate operating agreement with this partner, though I am not a lender and this is not lending advice. Would love to know what a lender would say on this…

@Geovany Espinoza the difference between strong coverage and minimum coverage will be negligible over a year. I would make sure you are covered and add in flood insurance. No need to get land lord insurance until you turn it into a rental, but make sure the property is fully covered in case anything should happen. I’m no insurance agent but I would shop around and see what fits best for your scenario. Hope this helps!

@Anthony W. Congrats on your first deal!! I’d let your property manager increase the rents since you did higher them to be less hands on. Manage your property manager and make sure they are on top of things. Don’t over spend on cosmetic upgrades as it can get costly. Keep a decent amount in reserves for any future capital expenditures. Save for your next deal and do it again! Would love to hear the numbers on this deal if you don’t mind sharing…? What are the current rents and market rents? How much will the upgrades cost?

@Frank Jeff definitely depends on your goals and finances. When you say, you’ve seen them…do the numbers work for cash flow or are you open to an appreciation play? Would you rather stay in Brooklyn or are you open to a change of pace down South? It could make sense to move to a more affordable market if the barriers of entry are to high in Brookyln or if the deals there don’t work well…I know NY tends to be more tenant friendly so that is something to consider also. You could compare some deals in the South and see how they compare to the NY deals and decide from there. Hard for me to answer this not knowing your full situation but I hope this helps with your decision.

@Kyle Mullins I think this is a fair way to do it. If they do not agree to the new terms, raise the rents to market value and find new tenants. Look at the rental demand in your area and post on Facebook groups to see what type of tenants you are attracting. Just make sure you screen them well. Nice work getting a triplex!!

@Dakota Rholetter awesome on you for getting into the RE industry and having a plan in place! I would start talking to lenders and see what you could get pre approved for with the capital you have or get a co-signer to help with the purchase of your first property. A great place to start is house hacking. Buy your property with a 3-5% down loan and rent out the other rooms to help cover your mortgage or even cash flow. Do this again a year later, rinse, wash, repeat. Use this experience to get into more deals and build a track record. Talk to as many investors as you can and continue to educate yourself. Listen to podcasts and go to meetups, surround yourself with those who are doing it. Your off to a great start…keep it up!