All Forum Posts by: Chris Henry

Hey Alex, congrats on getting started. I've got a really good wholesale contract that I can give to you. If you are worried about not having funds for EMD, we can hop on a call sometime to discuss gator lending and I may be able to help. Would love to help you get started and create a win-win for the both of us.

Quote from @Colin Bull:

I’m beginning the process of renting out my primary as part of my first investment! I’ve run the numbers and I'll cash flow around $200/mo, which I'm happy about for my first time! However, I’ve heard that furnishing a rental has the potential upside for higher rents. Has anyone had experience renting out their house fully furnished and if so, were you able to charge higher rent? Were there any other issues or upsides that come with a fully furnished home? Thank you!

For further context, my house is located in Oakland County, MI

 Hey Collin. I've got a bungalow over there in Berkley that I have rented out Furnished LTR. At first I had the property on Airbnb and decided to transition to see if I could find someone interested in renting it long term. Found a great tenant using this strategy. I think the location of your property is really important. Ideally you'll want to be within a mile or two of a hospital, close to the interstates, and close to city amenities. I'd probably only consider this strategy in that area with a smaller home like 2 bed/1 bath. Anything larger, I would rent it out unfurnished long term. 

Hi Chelsea! I'd highly highly recommend getting professional photos taken. Having them has statistically been proven to increase rates and traffic to your property. Also, try using a dynamic pricing tool on airbnb and vrbo. Pricelabs will competitively price your property depending on your competition in the area. 

Austen did a great job at answering those questions. Buying a 2-4 unit house hack as your first property will significantly help you build wealth and give you a great crash course on managing tenants. Just make sure that the property will cash flow once you move out! I've chose to rent out rooms in my duplex house hack to increase cash flow. It's a little more work, but worth the extra effort if you choose the right tenants. 

Quote from @My Nguyen:

Quote from @Chris Henry:

I house hack a duplex, but live in the bottom unit. I'm able to take depreciation on 50% of the property for the time being. 

Does your tenant pays his/her own utilities? Can you deduct 50% of those expenses? 

They pay for the electric and internet. Utilities are included in my expense report and then the difference is taken from the gross income. Pretty sure you can’t depreciate a variable expense. I’d recommend working with an accountant from the beginning. 

I house hack a duplex, but live in the bottom unit. I'm able to take depreciation on 50% of the property for the time being. 

@Jennifer F. For STR's, Guesty for Hosts does a good job at synchronizing your calendar on all STR sites along with sending automated messages that you set up. It's also a good scheduling tool with your cleaners. I'd also encourage you to set up with Pricelabs so you can dynamically price your property according to your competition and how well your property performs. For MTR's & LTR's I've been using RentRedi. If you're a BP Pro member you can use this for free. It's a pretty good tool, the only con I have experienced so far is the amount of time it takes for the platform to process payments and deposit into your account.

Quote from @Bonnie Low:

Very nice design!

 Thank you, Bonnie! I appreciate it! 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $198,500
Cash invested: $52,000

2 bed / 1 bath mid-term rental.

What made you interested in investing in this type of deal?

Had a friend approach me with an interest in partnering months after I was telling him about my house hack. This strategy and market allows us to have a higher cash flow while investing in a desirable area of metro-detroit.

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

Conventional 20%. Partner brought majority of cash to close.

How did you add value to the deal?

No major value add on this deal. Utilizing the MTR approach to increase cash flow.

Hi Andrea, 

We just purchased a 2/1 SFH in Berkley. We're going to use a MTR strategy to boost cash flow for the property. There are a handful of hospitals within 5 miles of the area and there is big need for travel health care professionals over there.