All Forum Posts by: Cody McVay

Kristen Fox with Fox & Fox Law is who I use! (https://www.foxandfoxlawco.com...)

Hello all,

I have completed one House Hack and am potentially taking a great job opportunity where I will be relocated to three different locations around the U.S. two are going to be for a short period and one being my end location. I am hoping to cover my cost of rent in these locations and house hacking is the best way I know how. Is it possible to house hack this much if I could be relocating in 9 months to a year and does it make sense to do so as I will have properties in potentially 4 different markets.

Thanks for your help in advance!

P.s. I certainly don’t plan on halting my investing, so my other option is just to keep investing in Columbus (where I believe I’ll end back up at the end of this rotation anyways) as I move to different locations and essentially become an out of state investor.

Liliinvests is great on Youtube, plus she has a bootcamp course you can join. She does mainly on-market and works with agents, but worth the watch! She was also on BP rookie podcast.

Best,

*Warning - Long response*

On my first HH I had a similar situation I inherited two tenants (one is still renting from us) and the other had a German Shepherd would not answer the phone/email and did not pay rent and the unit was pretty rough from their way of living. I purchased the property in Dec. of 2020 and their lease was up Feb. 1st 2021 (I had 90 days to occupy the property after closing, so I needed to move in by March). I mailed them a tenancy termination letter 60 days prior to the lease expiration and never heard anything back, about 30 days out tried to contact and still no response... (they have still not paid rent for January) so I sent the following paraphrased text a few days later...

"Rent is now 13 days late, I have tried to communicate with you and have not had any luck, I was willing to work something out with you e.g. drop the late fee, a payment plan, etc. but you have not communicated with me. This is my last attempt to communicate and work something out or I will be forced to get my attorney involved (make it clear this is not the route you want to take as evictions are long, draining, and go on their record making it difficult to rent) I added... If you leave the property by the lease expiration date AND leave the property clean and in as good condition as you found it I will not charge rent for Jan. and I will return the security deposit in full" I made the offer contingent on them responding to my message. 

They ended up leaving the property cleaned (even mopping the floor) and told me that I could keep the SD to cover unpaid rent. It does take a hit to your ego as you think "I need to be the big bad landlord and make them pay me or else" but when you take a step back if I would've taken the eviction route it would've been a long process (Plus covid was just starting up), an expensive process, and they probably would've left the property trashed. Taking this route not only makes it easier on you, but also shows your tenants that you care about them and are willing to be flexible, but not taken advantage of.

So my advice to you is to communicate with them an figure out how you can assist them, maybe help find them a new place to rent or find out what would motivate them to move out sooner (cash for keys, etc.)

Hopefully this helps and please feel free to reach out if you have any questions!

Best,

I've seen minimums as low as $25k If you're an accredited investor, but I would say most operators are looking for a minimum investment aro $50k, however, I've seen some of the big guys like Grant Cardone having a minimum investment requirement of $100k, it just varies from operator to operator.

@Bob Foglia I would Invest in large syndications with tried and true operators this is a passive way to make some serious returns depending on the amount of capital you have to deploy, On a smaller scale I would probably consider a Joint Venture with someone in a market you're interested in. A great book I recommend would be "The hands off investor" by Brian Burke.

Best, 

You can be successful in any class, albeit some are more/less difficult to succeed in than others. If you're up for it C & D class can provide great ROI just be aware that there's more risk involved ie generally worse tenants, less desirable location (Higher vacancy), higher maintenance costs, etc. it's all about what you're after low risk or high roi...

Also I wouldn't allow the cost of entry to make the decision for you, if you need capital partner with someone who has it or house hack in an A/B location (this is the BEST way to start in my opinion and you will learn a ton about landlording), but at the end of the day it comes down to your risk/reward tolerance.

Best,

@Jason DeVelvis I would reach out to @Chris Wharton he's great! He may be able to help you out! or at least provide some insight. 

Hello fellow Cbus investors!

I am a local small multifamily investor mainly focused on the East side of the Columbus/Newark market. I am looking to wholesale as a way to create additional income to reinvest into more buy and hold properties. My question is how do you quickly estimate a rehab budget for your buyers? I have been using rehab grades (light, medium, heavy, extra heavy) with a corresponding $/sq ft. ie. (light = $15/ sq ft., medium = $25 / sq ft., heavy = $30 / sq. ft, and extra heavy = $40 - 50/sq ft.) is this the correct way to do this and are the numbers I'm using accurate for our local market? 

Thanks in advance!

 Going from HH to a 132 unit is impressive! Were you the GP or LP on that deal? 

I agree! Thorough tenant screening and having solid rental criteria will make or break a landlord, great advice!