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All Forum Posts by: Chris Allen

Chris Allen has started 42 posts and replied 298 times.

Post: What Travel Nurses are Looking For in Housing (From a Travel RN)

Chris Allen
Posted
  • Temple, TX
  • Posts 307
  • Votes 212
Quote from @Allen Duan:

This is super helpful! Thank you for sharing.

I can attest to many of these points. Our smaller properties, one bedrooms and even studio apartments, get a lot of interest from travel nurses. We've also started setting up pet friendly properties as we're finding so many travel nurses have pets. I also like the distinction between the two types of mindsets travel nurses have when it comes to housing. I've wondered before why some travel nurses have such a small budget while others are happy to pay a lot more for housing.


 That is great to hear! And yeah, people do travel nurses for different things. Some nurses still have a home somewhere else that they are paying on every month, so if you can imagine that they are paying $2k/mo back at home, then having to pay $4k/mo for travel housing, it just really does not pencil out that the travel assignment will really make you any extra money. Especially if you are also having to pay for your own health insurance as well. 

Post: Travel Nurse Less Than 12 Months, Loan Options?

Chris Allen
Posted
  • Temple, TX
  • Posts 307
  • Votes 212
Quote from @Christin Nguyen:

Hey everyone, 

I’m having trouble finding a lender who is able to get me preapproved because I’ve been a travel nurse for less than 12 months. I have been a registered nurse for over four years though, and have had a steady income. 

What are my other options in getting a loan for an investment property such as a duplex? What are the pros and cons of having a private investor versus a conventional loan from a bank?

 Like @Marcos Gonzalez said, they should be able to average your income as a nurse because you have worked in the same industry for more than 12 mo. Are you W2 or 1099 as a travel RN? Here are some tips that I did to secure financing

- Write a letter/email detailing your experience as a nurse, how long you have worked as a nurse, your transition to travel nursing, how you are paid, how contracts work, etc... Be as thorough as possible. 

- Provide them your current and even previous contracts to show employment history and pay

- have your recruiter email them and explain your employment and job outlook for travel nurses. 

- Going forward, I recommend taking as little time between assignments as possible, and also try and stay with 1-2 agencies if you can (obviously don't if other agencies have way better jobs and work better for you)

- I would consider trying to get a PRN/Per Diem job where they will allow you to be gone for extended periods of time, that way you can show that you have steady employment where you can go back at anytime and pick up shifts. 

Post: How Does The 1% Rule Apply in House Hacking?

Chris Allen
Posted
  • Temple, TX
  • Posts 307
  • Votes 212
Quote from @Christin Nguyen:

Hey Chris, 

So here’s another question to go off the home and renovation loan: Can I pay a portion of the renovation with my own cash and a portion with a purchasing and renovation loan? Is it wise to use my own money in such a large amount for a renovation? 

Let’s say the property is 190k and I can put 25% down, so 47,500. Now I need a loan of 292,500. Instead of taking out this much, what if I put another 50,000 cash into the renovation? Then should I only take out a loan of 252,500?


After this is all said and done, how much would my mortgage be? Is it based off of the entire loan amount that I took out? Or is it based off of just the property price of 190k?



You will need to run the numbers on what the best option for you to do would be. Look at your return for the different scenarios (Finance purchase and rehab vs put more of your own cash into it). But yes, most loan products, if you finance the rehab, the mortgage will be the purchase and the construction cost. 

Look into the FHA 203k Loan. There are drawbacks on the loan, but I would at least look into it if you can not find other ways to finance the rehab. Only have to have a small down payment; not the full 20%.

If you have the cash available and can put down 20%, are you wanting to buy this as a primary residence, or would you be okay with just buying it as an investment. There are plenty of HML type lenders out there that can finance the purchase, rehab, and then you can refinance and get your cash back out.

Post: How Does The 1% Rule Apply in House Hacking?

Chris Allen
Posted
  • Temple, TX
  • Posts 307
  • Votes 212
Quote from @Christin Nguyen:

Hey everyone,

So I'm a travel nurse ready to get started into this world of real estate. I have a potential duplex but wanted to understand how the 1% rule would apply if I live in one unit and rent out the other.

Let's say the property is 190k and I have to put 100-150k into a complete renovation. Ideally, the unit that I’d rent would be around 1,700-2,000 a month.

How does the 1% rule work here? Do I also include how much I would charge if I were to rent out the unit I’m living in as well or no? Because I would need to make 1,900 a month to make it a good investment (according to the 1% rule). So is this 1,900 split into both units or should it only be accounted for the one I’m renting? 

I’ve got lots more questions but I figured this would be a good start. Thanks in advance for the help and advice!

 Hi there, fellow travel nurse here as well! I would look at this a few different ways. 

1) Like @Jesse L. Weaver mentioned, after you are all in for $340k, will the property rent out for a total of $3,400/mo? From what you mentioned one unit would rent for, if the one you plan to move into would do the same, then yes; even after renovations you would be at the 1% rule. 

2) What is the After Repair Value (ARV) of the property after you put the $150k into it? Will it be worth at least the $340k or more?

3) Is there a better property and use of your money? Do you have cash for the renovation or would you be using a loan product to do the purchase and reno?

Keep in mind that the 1% rule is more of a "rule of thumb" and does not actually mean that a deal is a good deal, just means that it is worth looking more into. If this property would be a good investment without you living in it, then I think it is worth you looking into. If not, you might consider whether the rental savings you would get from the tenant helping pay your mortgage vs what you could re-sale the property for in the future might be. As a travel nurse, you could always try renting your units out as a furnished unit to other travel nurses to increase the rental income as well!

Post: Questions about screening traveling nurses/contractors/professionals/digital nomads

Chris Allen
Posted
  • Temple, TX
  • Posts 307
  • Votes 212
Quote from @Roman Puzey:

Hello,

I was wondering if its necessary to screen a traveling nurse for MTR strategy? Since they are professionals, I am not sure if background check, cc is necessary to do on them but want to get peoples opinions. If it is recommended, would a service that BP partners with will suffice, RentPrep?

From a travel nurse perspective: I have never been requested to do a background check for housing during my travel assignments  (although I have only rented from Furnished Finder (FF) once, and usually just go the AirBNB route). As a nurse, it would irritate me to have to do that after all the paperwork, onboarding, and other things we do to take an assignment. Would rather have it a no-hassle AirBNB type route. 

From a LL perspective: If I am allowing someone to stay in my home and am signing a lease with them, then I would absolutely want to get a at least a background check with them, get their contract agreement, and maybe even get their recruiters email to verify their employment. Depending on your state and your comfort level, I might consider doing a Month-To-Month lease with them instead of the 3-6mo

Post: Looking to Invest in a rental in Waco

Chris Allen
Posted
  • Temple, TX
  • Posts 307
  • Votes 212
Quote from @Noelle Stecher:

I live in Houston and the market here is way too expensive for me to have good cashflow, so I am looking at other options. I’ve seen many good things about Waco and the population growth there. But, I am definitely open to other suggestions. 


I am not that familiar with Waco (other than driving through it routinely) but I know just like any city, there are some really nice areas and plenty of "not so nice" areas. I have recently started looking into the STR market there and know that it does have a strong STR prospect.

I am in Temple areas (Killeen/Belton/Temple) about 45 min south of Waco on I35. This might be an area you consider as well! Temple: Major Medical (only Level I trauma center between Austin and Dallas and VA hospital), FB/META is building a data center here, Belton has private 4 yr university, and Killeen has Ft. Hood. Good population growth in the area

Post: What Travel Nurses are Looking For in Housing (From a Travel RN)

Chris Allen
Posted
  • Temple, TX
  • Posts 307
  • Votes 212
Quote from @Roman Puzey:
Quote from @Chris Allen:

I just wanted to share some of my experience as well as a poll I took as to what travel nurses are looking for in housing. I will separate it by the two most common types of travel nurses; those who try and optimize their income, and those who travel for the experience. Please keep in mind this is more of a spectrum, so some nurses who are in it to optimize their income still might want a really nice place to stay, and nurses for experience may still want decently affordable housing. 

To start, here are some things that you may want to include in your listing, or that nurses may look for in a listing regardless of which type of nurse books.

- Proximity: 15-30 minutes from hospitals is usually a pretty good distance. Some nurses may be okay driving a little more, but most prefer the 15 minute drive. 

- Pet Friendly: A LOT of nurses (myself included) travel with pets. I look for a decent sized fenced back yard so I can let my dog run around outside. While not a deal breaker, consider setting something up specifically for pets (food/water bowls, dog towel, Rover Service/Boarding Service Recommendations or maybe even a kennel).

- Treat your MTR more like a STR. Provide basically the same amenities, but does not have to be to par as a true vacation rental. Nice towels, linen, fully stocked kitchen WITH MICROWAVE, COFFEE MAKER/BAR, good WiFi, decent Smart TV, In-Unit Washer and Dryer is a big plus!

- Room darkening shades is a great amenity for the night shift people

- Overall, just make sure it is comfortable, clean, and equipped for a busy and tired working professional. 

I had a poll and out of 95 people who voted for size of housing (shared vs private 1-2 bed vs private 3+ bed),

80 voted that they look for private 1-2 bedroom properties

10 voted that they look for shared housing (rent by the room)

5 voted that they travel with others need 3+ bedrooms

Nurses who try and optimize their income: These nurses are usually looking for either shared housing, or an affordable 1-2 bedroom. They like all the basic amenities I mentioned above, but are willing to sacrifice quality and comfort to some degree for the ability to save 50% or more of their housing stipend. Usually willing to drive a little farther out to save some money. 

Nurses who travel for the experience: These nurses are usually either those who have no true "Home Base" that they are tied to, are traveling with family, or are just really doing it more for the chance to visit cool places. These nurses usually are looking for either a nice private 1-2 bedroom place in a great spot in town, within 15 minutes of the hospital, or are traveling with multiple people/family. They are usually okay with spending their entire housing stipend on a nice place to stay, but would still like to save a little if they can. They look for all nice quality amenities listed above.

How much of a hinderance is not having a full kitchenette in the traveler's nurses quarters area and they have to share the main kitchen with the owner? 


 If someone is willing to rent by the room, I don't think they are going to care. 

Post: What Travel Nurses are Looking For in Housing (From a Travel RN)

Chris Allen
Posted
  • Temple, TX
  • Posts 307
  • Votes 212
Quote from @Scott Pollock:

Chris,

Great post and appreciate the effort you put into that survey...that is very helpful! I am converting my Granny flat in my backyard from an LTR to a medium term. It's about 350 sq. ft. with a kitchen, fireplace and 3/4 bath. I am wondering how weird it would be for a nurse to live someone's backyard? Any thoughts?

Probably not as weird as you would think if hou are in a high cost/high demand area. As long as they have some good privacy you should be fine. 

Some nurses also just rent a place for the days they work and head home on the days they are off. So they really just need a place to stay the night, not live in. 

Post: What Travel Nurses are Looking For in Housing (From a Travel RN)

Chris Allen
Posted
  • Temple, TX
  • Posts 307
  • Votes 212
Quote from @Nicole Heasley Beitenman:

Thanks so much for sharing! We are looking at either multifamily with 1-2 bedroom units or small (1-2 bedroom) houses. But it may not be a bad idea to throw one larger house into our portfolio and rent by the room. 

That is not a bad idea! 

Post: What Travel Nurses are Looking For in Housing (From a Travel RN)

Chris Allen
Posted
  • Temple, TX
  • Posts 307
  • Votes 212
Quote from @Taylor Dasch:

Hey Chris, I just started my MTR in Temple and wish I would have seen this before hand! Love the info and I have found it true that a lot of nurses will like to travel with their pet as well as their significant other. 

I am currently RIGHT by the hospital in Temple and have had mixed reviews. Some really like that it is super close but others are not a big fan of the neighborhood. I personally think it is a great area to invest. 

The in unit washer and dryer is definitely a must to get the premium rate. 

Thanks for the post man, hope all is well!

That's great! Yeah, the neighborhoods right next to the hospital are not the best, but not bad by any means. Would love to chat