@Joseph Moudni Sure! Let's start from the beginning... I am a software engineer who, like many others here, wanted to stop renting and start accumulating equity.
As an engineer, I was immediately drawn to the numbers and having been a renter in the area for the past 9 years, I had a good idea of what rental rates were on a per room basis. Using these figures, I was able to calculate I could break even in a worst case rental scenario at around 350k per 3 bedrooms. So I knew the home needed to satisfy that ratio requirement at the very least in order for me to have the desired sense of financial security in case I ever lost my job and had to work at McDonalds.
Browsing through Redfin, I saw some amazing deals that were already sold and realized all those great deals typically went off the market the same day or next day. Instead of settling for available inventory I waited until the next great deal appeared and placed an offer immediately. It was a 6 bedroom 3 bathroom house for 490k, so it was a no-brainer after having done the previous research to determine the viable ratio.
I began sharing my home with renters (3 of the 6 bedrooms) in 2013 and basically live rent free while being able to depreciate/deduct home renovations such as removing popcorn ceiling, replacing bathroom fixtures, etc.
Going from paying rent to having rent paid by tenants has helped me accumulate cash at a rate I could not imagine, and I am extremely interested in determining how to expand on this business by purchasing more properties once the real estate bubble pops again.
Some information I am seeking from this community include things such as what the correct business entity I should set up, and just any general information. I have read such valuable information here that I wholeheartedly agree with. The most important thing is to always treat your tenants like customers and your business like a real business.
