All Forum Posts by: Evan Rumble

I should rephrase, I don't actually mean create it myself.
I more so meant I would like to pick a premade one that best fit my needs, and I am looking for things that I should make sure are incorporated in said agreement.

Thanks for your responses!

I am about to move into a house hack (duplex) that I just purchased.  I have one more year until the downstairs tenants lease is up. I would like to create my own lease agreement once this happens, for this property and future investment properties.

What should I make sure to have in my lease agreement that would make my life easier, or protect me as the landlord in the future. Similarly, what could really hurt me if I don't include it in the agreement. ( I would like to hope for the best, but plan for the worst)

ie) pets will require an additional 50 dollars a month in rent; or having an extra charge notated for late rent

Also, if anyone has any horror stories about something not being in their lease agreement. I would love to hear about it.

I am just about to finish up with the purchase of my first property. It is a stacked duplex, where I will be living in the smaller upstairs unit. We plan on living there for a year or two.

I would love to hear if anyone has any general tips, as I start living there and managing the downstairs unit. 

This could be anything from;  tips for saving on costs/utilities, tips for dealing with tenant/neighbor,  ways to create justified rent increases, tips for tracking expenses/income, or any other general advice from experience.

That is great advice.

I had a feeling I was just thinking about it the wrong way, but I had no idea what the right way to think about it was. Thanks for your help!

Obviously, house hacking is going to have a negative effect on cash flow, as opposed to renting out all of the units to tenants; but.... 

When using the 1 & 2 percent rules to predict cashflow for a house hack; should I add in the rent I would "pay myself" into the equation, or should I only consider the rent of  tenants? The former would mean I am considering the rent I pay, as contributing to cash flow. Is that a good, or bad practice? If a deal only has positive cashflow because I am paying myself, is it really cashflow? I am really looking for decent cashflow, as a necessity for the investment property I want; so I want to know if I am looking at this all wrong. 

Thanks!

 

I am moving towards my first investment, and it will be a house hack. I am looking to use this to propel myself into future rental property investments, many of which will not be house hacks. 
What will be some of the main differences between a regular multi-family rental investment, and one that I am house hacking.
Also, are there any good practices I should implement that will pave the way for future investments, that won't be house hacks; Otherwise, any practices that will at the very least prevent me from creating bad habits, systems, business model, etc. 

I will give an examples of some advice I have already received. I have been told that when house hacking, you should "pay yourself rent". This more accurately mimic what it will be like when you eventually move out. 

Please, let me know if the question needs to be better articulated.

Thanks!

As I am moving towards my first investment, I am currently trying to analyze as many properties as possible. assuming the property doesn't have any obvious red flags, I normally start with a quick check for the 1% rule and 50% rule, as cash flow is really what I am looking for in my investment. If it passes those, I will run a report on BP to further analyze.

1) Should I live and die by the 1%, in terms of deciding whether I should dive into deeper analysis on the property? If something is at 0.9% should I completely rule it out from having any cash flow potential? 

2) These rules seem very dependent on semi-accurate numbers (estimated rent; asking price - which is then dependent on things like estimated repair costs; etc.) Therefore, there are probably deals that could have been great, but I underestimated the rent / didn't consider negotiating a lower price (making the property fail the 1% rule). Is there any advice for improving my accuracy at predicting these important numbers? accurate rent estimation is one of my biggest issues/concerns. 

3) another set number I have a hard time estimating is expenses. Are there percentages I could use to estimate individual expenses, for when I want to get more precise than assuming 50% of rent will be expenses. (insurance, cap ex,  etc.) Obviously, property tax will be dependent on my location (east of Akron, OH), but will any of the other individual expenses be highly area dependent?

4) Lastly, is there anything else I should be adding into my initial analysis; before I visit the property, talk to contractors, etc? As of now, I first make sure there are no big red flags like the neighborhood, school districts, too much repair needed, etc; then I look for the 1% or 2% rule; the 50% rule; try to estimate repair costs/ARV (which is hard for me).

I would greatly apricate any feedback, and I apologize if any of this was hard to understand.

I am moving towards my first real estate investment (House Hack). Up until now, I have been in the process of educating myself to the best of my ability. I am currently in the process of solidifying my financial plans (securing a loan) and looking into getting a real estate agent. I know after having multiple investment properties, it could be more beneficial to have property managers, CPA, bookkeepers, etc. However, I like the idea of starting with a minimal team, so that I can better learn the ropes myself. Then I can hand off these responsibilities to other team members, as I expand my operation. With that in mind, who should I consider "essential" (I use this word loosely) to my team for the FIRST investment? Also, at what point would it be beneficial to start introducing CPA, bookkeepers, etc. to my team?