All Forum Posts by: Chris G.

@Kris Tully

Hey Kris,

I did not get much response. I was able to find out who my company contracts to place employees. The issue is I'm stepping into the unknown with trying to rent out just a room in a house vs the entire house.

So far the best response I got from the placement company is that it has not been done but doesn't mean it can't be.

Fingers crossed but I will let you know.

-Chris

I'm looking for a way to properly insure a single family residence with more than two roomers/boarders.

Background: I live in a 4 Bedroom 2 Bath house. I rent out two of the rooms to co-workers. Under a standard home insurance policy I am covered because it is no more than 2 roomers/boarders. They are on annual leases and advised to get renters insurance as their belongings are not covered. We deploy overseas so generally there are no more than 2 people in the house at once.

The problem: I would like to add another renter to the house. This would then make a standard home insurance policy invalid due to the more than 2 roomers/boarders. Landlord insurance would not work since the property is owner occupied.

Does anyone know of a company that can make this work?

If I, the owner, moved out would a Landlord Insurance policy allow one of the renters to sublet to co-workers? IE- I charge a flat rent to him. He rents the other rooms.

Let me know what you guys think. So far I've gone through about 5 different insurance companies who all say it can't be done.

Hey guys!

So I am currently creating a pitch for my company to open up the ability to rent a room / house instead of putting employees up at local hotels. I am looking for a company or person who has experience in the Corporate housing world to run some questions by. Any help would be awesome!

Hey @Andrew Harker. 

I will hold onto this house for as long as possible. I know for a while there wasnt much building being done in the High Desert. Yet, that is all starting to change. There are huge developments starting to build again. Ive also read Victorville's City development plan and there are plans for some multifamily developments as well. 

I think it is getting to a point where there isnt much more space for down the hill, LA and Inland Empire basin, to grow so that pushes people to the HD. The commute sucks but its cheaper and the communities are new, shopping centers are new. 

@Michael Guzik Do it! Especially if you have some friends that you could rent the rooms to or people that you trust. You could either splits the bills or include it in the rent. For my situation it made more sense for me to pay all the bills. I know also if you live in the residence you have more wiggle room as far as who you rent to and how you can get them out. 

Thanks guys! @Anthony Angotti, @Joe Norman. As of posting this I am now dealing with my first tenant turnover! One roommate off to another job, time to get another in! Timing is a funny thing! 

My story of a house hack with roommates... Before finding Bigger Pockets

It all began with a new job a few hours from where I lived with my family in Glendora, CA. I got sick of spending 4 hours a day, without traffic, in the car. I had a few options. Rent a place closer to work and give my money away. Stay with my family and save. Or buy a house closer to work and rent the rooms to some of the people I work with.

I finally landed on a house in a great area, for what is great, in Victorville, CA. It was close to work. It was safe. It was quiet. Before I bought the place I already had the roommates lined up. Leases signed I had 2 of the 4 bedrooms rented, leaving one open and claiming the master for myself. 

The numbers: Purchase price was $197,000. Using the FHA I put little down. Mortgage was $1300. Rooms were rented at $650 a month each and that included all utilities which have averaged about $400 a month. All in all it doesnt cash flow but I have a master bedroom in a house in California that I only pay utilities for.

The Lessons: In the original hunt for a house we came across a huge 2 story 4 bedrooms 3 bath house that needed some cosmetic work. Looking back at it after the years of knowledge, that would have been the house to buy. Forced appreciation and I could have refi-d into a loan shortly after purchase and dropped that evil leach PMI. With a larger layout I would have been more comfortable with renting out all the bedrooms as the roommates now have a small bathroom to share. But it is what it is.

The Future: My girlfriend and I now have a plan to get out of the master bedroom we have now. In the short term, depending on job and market, we plan to move out, FHA another property and rent the rooms in the same manner as before. If we free up the master bedroom in the house and drop some of the utilities on the tenants it will easily be a cash flowing property.

In all it has been an amazing life experience. Buying a house, dealing with being a landlord, separating landlord and roommate relationships and seeing in the moment how no one will treat your property how you want. With the knowledge of BiggerPockets at my fingertips I am ready for more!

Get the book on Long Distance Real Estate Investing! Also find The Frightening Four by @David Greene. I had doubts about investing out of state but The Frightening Four really kicked my %&* into gear! 

Find a market. Build a team. Take action.

Best of luck!

Hey Mike! I have the same problem with SoCal!

Ive been looking into Cleveland. From what I can tell it seems to have stabled out. Still has room for the house prices to come up to what they used to sell at. My problem is trying to find people in the local market to work with. Partners, Contractors, Managers. 

Best of luck!

Hey guys! Im trying to find a mortgage company I can start with and hopefully continue to use and build a relationship with. Ive read some of the reviews on BP of Guaranteed Rate and they seem to be positive. I have not seen much on New American yet their BBB score and reviews look good.

Does anyone have any input?

Does anyone have any recommendations?

Im looking to get started in Ohio (Conventional), with a possible refi in California (FHA to Conventional).

Maybe something in Australia? Thats later though..

I might just go with both and post a side by side review...