All Forum Posts by: David Mathews

@Sam Dalton

Hello Sam. I'm curious about what you went with? I have a 2 bedroom SFR home and about a mile away a very large SFR home that I converted to a 4plex that I do furnished rentals with. The reasoning behind mine is bc we have so many industrial expansions going on in our area. I originally decided to try it for 2 reasons.

#1 The 2 bedroom SF home was vacant and I had it listed for $1100/mo. While showing, the majority of potential tenants were from out of town here to work construction for 1 to 2 years. SEVERAL of them asked me the same question. "Would I be willing to do all bills paid for an increased amount of rent?" They were all going straight to work full days from the moment they got to town and didn't want the hassle of setting up the utilities.

#2 As I inspected my properties or lost these types of tenants previously I noticed they were using very cheap or free types of furniture (and bare minimum). Several times I noticed air up mattresses for beds. As they left they would typically just leave the furniture for me to have to get rid of.

So what I did to test the waters...

My daughter and I both love shopping garage sales. Plus she loves decorating. We picked up gently uses but nice furniture, generic art to hang, kitchenware, and pretty much anything a home would need to live in. Garbage can, microwave, coffee pot, etc... The bedding and linens I ordered from Amazon. People were looking but balking at my $1100/mon for this 2 bedroom. After setting it up to be move in ready and stocked and hassle free with bills I relisted for $1600/mo. It rented right away and hasn't had a single problem. I'm actually on my 3rd lease on this particular property without missing any rent between leases. An additional plus is that this clientele typically receives per diem for living expenses so they're not concerned about their deposit. ($1000) I do have a clause in my lease requiring a 30 day written notice to vacate. I make sure to point that out and stress it at signing so I'm not being shady. They acknowledge it and most of the time they also acknowledge they will mostly likely forfeit that when their work here is done. So this rental has performed exceptionally well! Enough so that I've used the same model on the 4plex. so far so good.

@Sebastian Garcia

Awesome job! Looks like fox run? If so then that's a great part of town.

@Tony Robinson

Awesome job! Looks great!

How the heck do you post pictures on here BTW?

@Dennis M.

Rocket surgery...

🤣😂🤣😂

@Nathan G.

I dont know of any specific apps or programs to use but I've heard they exist. Possibly something that you can use to take a snapshot of the receipt with your phone and you can file it away that simple at the time of purchase. I'm not sure but what U do know is it's the 1st of the year and a perfect time to get a handle on things. And you're certainly right about discipline!

@Nathan G.

Great thread idea! I'm following. I would love a better way of doing taxes and receipts than just letting them pile up in my truck console then plugging them into a spreadsheet when I find the time. Usually at the end of the year.

@Richard Wong

FYI the biggest hurdle so far has been mail. As a house hack it works bc all mail is delivered to the main house. The owner then could deliver to tenants. Im not househacking though. The way I got around this is by renting a mailbox at a shipping store about a mile from the property. It is $70/year for the box. Small price to pay considering the income this property is producing.

@Richard Wong

I have a large SFR that was very compartmentalized and the previous owners were renting as a house hack 4plex. They literally screwed hallway doors shut to section off a couple portions of the home to call them apartments. After purchasing, I completed the sectioning off by actually framing up & putting drywall up plus did a lot of updates. I was concerned about operating this property as a 4 unit as well so I called zoning & planning. I know this probably isn't the right way to do this but she advised me that there was an ordinance stating no more than 4 people not of the same family can legally reside in a SFR where this home is located. She said as long as I'm not breaking that ordinance then I'm still legal. I currently have 4 tenants (not related) at full occupancy. Not sure if that's good advice or not but that's what I went with and it has been cash flowing every since.

@Nathan G.

Sheila's sailing she-shed?

We covered it. We know a thing or two because we've seen a thing or two. 🎶bum-pa-dum, bum-bum-bum-bum🎶

@Jana Landreneau

I am so sorry to hear that bad news about your loss.  Understandable that you would take a break from it all. I hope you decide to give it another go when you're up to it and whatever Avenue you pursue is fruitful for you. 

You asked what I do. Unfortunately I don't have any experience to share with wholesales. I started with real estate in 2015 and have mainly done BRRR. I have 7 doors so far and so far so good on them all cash flowing. On of my properties is a single family residential property that I basically converted to a 4plex. It's kicking butt at the moment but I am a little nervous about all the zoning and permitting to operate it as such. I'm currently trying to learn a little more about all of that bc this property has produced so well and I'd love to develop a strategy to do more like this one. (Legally) Which this one is currently legal being that the Lake Charles ordinance is that 4 people not belonging to the same family may reside in a SFR. I did buy a piece of land by "driving for dollars" just off of Big Lake Road that I am looking to do something with. I sent the owners a letter and the deal developed like that. That is one of the reasons I was curious how your phone calls were producing. I do have my eye on a property and my wife happens to kind of know the owners. Thinking about calling them since we are looking for our next deal.