All Forum Posts by: Cody Malave

I was hoping for some feedback in what some have done in regards to out of state property management, particularly for single residences. I am currently looking for a property to purchase in the next couple of months but plan on leaving the state by the end of next year. My question is how others have managed their out of state properties successfully without having the ability to just drive over to it. Outside of hiring a property management company for a single residence, what do you all do? 

Did I post it in the wrong spot? 

I live in a top ten largest city in Florida with an average of 2-3% growth rate per year over the last five years. It seems to only getting larger and I am considering purchasing an SFH to house hack, and I was wondering if it would be more profitable and perhaps less hassle to rent it out as an AirBNB versus renting out individual rooms. As a fairly popular destination for travel on the Treasure Coast, I feel as though it could be smart move. Does anyone have experience having both rented out rooms and had/currently has an AirBNB up? I know some mortgage lenders don't approve for renting out entire homes as AirBNB's, but does that still apply when it's a non-HOA owner occupied SFH?

@Javier D. Great county in which way? It's terribly expensive here. Definitely a seller's market right now.

@Kase Knochenhauer @Whitney Hutten I appreciate the feedback but I was hoping to have more of an experience with strangers. Renting rooms to/from friends is really just like getting a place together except owning the house instead of chipping in for rent yourself lol. I also made the mistake of living with my best friend back in my early 20s and it straight up killed the 18 year friendship. I think I’d actually prefer the strangers.. 

BiggerPockets,

I was wondering if anyone here has any experience in house hacking a SFH but renting out rooms individually as an O/O. While I understand the drawbacks to sharing all of a house's common areas as well as potentially bathrooms, I know there is also much more room for personality differences. Most of my renting in Florida has been on this basis, however. I personally have rented rooms from people found from either Craigslist ads or by word of mouth, and have never had any issues. I screen my "landlord" as tediously as they are probably screening me because I will be living there with them. Due to the market in my area, it is a lot more likely to be able to find an affordable SFH that I could essentially and eventually BRRRR, but house hack for a year or two prior to renting entirely.

I understand certain drawbacks such as personalities clashing and perhaps even personal safety issues, but provided solid screenings are done, is this something you all would encourage? Or be dead set against? Again, hoping to hear from those who actually do or have done this instead of just perspective on what could go wrong or right. 

Thank you!

@AJ Shepard I've had a residual interest in the appeal of real estate for a long time, but I've only fairly recently become completely obsessed. Which is funny because now I'm finding myself talking to more and more successful individuals who have their hands in some part of real estate as a portion of their wealth. I lack experience in many areas of it which will come with time but I have a huge network and reliable people that I've maintained relationships with all over the country so I think once I dive in, I'll do okay. Like you said, the biggest part comes from buying low and adding value, regardless of whether or not its a rental or a flip. Making money is done on the purchase and not the sale or cash flow. I'm just trying to minimize and mitigate my risks as much as possible before I make my first purchase. Especially since I plan on pursuing the househacking route in a SFH with SRO's versus a plex of some sort.

@Angelo Mart I want to know how people come up with so many LLC names. Don't they all have to be unique entities?

@Javier D. I’m surprised this post has taken off like it has. Makes me feel like I joined the right place! I suppose I could always be overthinking too. I need to first with one property and I’m sure I’ll learn to grow as I go as far as keeping track of everything. 

@Jennifer ODaniel I'll definitely have to look into it further. Most of the other poster's here seem to believe that LLC's are essentially useless but I haven't found much online of comparisons for an umbrella policy vs. an LLC. I've seen a few people mention something about setting it up as an S-Corp(?) as well. Where I'd be a sole proprietor or single-owner LLC I'm just trying to establish a baseline that allows me to eventually pay myself without additional risk to my personal assets in the event that something goes poorly in the future. I also would not want multiple properties assets or equities be at risk from one another but having endless LLC's to match each property sounds cumbersome. Surely there must be a way to protect them all at once without so much individual work.. or is that what an umbrella policy covers?

I appreciate the feedback from everyone too, it's hard to keep up with responding to you all individually but I'm definitely reading every word!