All Forum Posts by: Connor Rice

@Ryan Riches thanks Ryan!

A few questions

-so after you get your leads you negotiate with a standard lease (or whatever lease you use for all other rentals)? What site do you use to get your lease templates?

-I’m assuming you pay all utilities?

-do you collect a security deposit?

Hi BP community,

I purchased a house hack property and the upper unit was previously used as a "corporate" rental through AirBNB.  I will be living in the lower unit. 

My question is.....should I continue with AIRBNB with a 30-60 day minimum or draft up a M2M lease?  AirBNB charges a 3% fee, so I would like to avoid going through them.  I would also like a 30 day notice before the tenant vacates and that doesn't seem to be something I can set up on AIR BNB.  The tenant plans on staying until spring so I am just trying to weigh my options and think of all implications going either route.  I would like to hear your thoughts, especially from some people who currently own corporate rentals/Long term AirBNB.

Thanks in adavanced

@Marcus Auerbach thanks! It's refreshing to hear a positive outlook for such narrow margins. The property is located in a West Tosa neighborhood (south of north Ave) so it's hard to pass up a seller financing deal there. I can't seem to find any of these 60-90% COC deals that everyone keeps referencing. Maybe I'm looking in the wrong places, but I'm certainly going for quality over quantity because I'm house hacking.

@Clint Shelley good advice! I have a decent cash reserve and put in a certain percentage for capex and repairs in my budget. It is a turn key property with newer roof, furnaces, hot water heaters and driveway.

@Steve Morris understood. The reason I am only using 3.5% down is so I DO have some reserves leftover. I have about 50k in reserves.

@Steve Morris the numbers on the report are the ACTUAL numbers. I’m using 3.5% down at 3.5% interest rate. All the details are above in the comments and report. I’m still not sure what the actual question is.

@Steve Morris I’m not 100% understanding the question. Should I ask the seller to sell to me at 0% down?

@Brent Coombs Gotchya. Thanks for the advice

@Steven Foster Wilson Very good point.  I am actually purchasing this duplex as a house hack but crunched my numbers as a full investment property as I will only live there for a year.   I would totally invest in the C/B neighborhoods, just maybe not for a house hack.

@Steven Foster Wilson Absolutely! It seems that here in Milwaukee 20% COC in a B (or better) class neighborhood is way above average. As a beginner investor I am trying to avoid any C or lower class neighborhoods for now.