All Forum Posts by: Jeremy B.

@Will Gaston I suggest you read your own homeowners policy. It's not a bad idea to ask your agent but I wouldn't 100% rely on the answer. Don't assume people know what they are doing and realize that your insurance agent makes money by selling you more insurance. You can probably even get an electronic copy of the policy and just "Control F" for "pet" or "dog"

@Mel Hayes, you'd be better off getting quotes from another 5 lenders rather than asking other members. Try Network Capital and Angel Oak Home Loans. I'm not sure if they operate in CA but I've gotten good deals on cash out refinances of investment properties with them before

@Matthew Brewer. Jessica Lear with Generations Realty in Marion. PM me and I can send you her info

@Stephanie P. Is a smart cookie. She redeemed BP from the less than accurate answers provided earlier in this thread.

@Oliver Santiago you are looking at this the wrong way. Long term tenants are a dream. Stable income and they're probably not the type to continually bug you for small things. You'll probably save/make $500 right off the bat just by not having to deal with the vacancy expense of turning the place over due to them moving out.

I'd advise you to raise their rent to $850, or $900 max soon after taking over. Don't bother renovating their unit, but let them know you are willing to if they want to pay the market rate. You need to do your best to have this conversation in person, treat them with respect and be direct. You can renovate when they move out and bring it up to market then.

If $50-$100 a month is going to ruin your deal, it's probably not a good deal to begin with. And you'll also get some personal satisfaction out of being a good neighbor. Chalk it up as a charitable contribution if you need to mentally. Although as others have already mentioned, there are legitimate business reasons to hold onto long term tenants. So I'm not even sure its purely an altruistic move.

I recently bought a duplex with a couple in the bottom unit in their 70s who'd lived their for 40 years. They were paying $425. Market is probably $550 - $600. I raised their rent to $500 immediately and gave them the option for a renovation at higher rent. They declined. Every month I get a check like clockwork. They don't complain. They had a raccoon in their chimney and the guy offered to get up on the 30 foot roof and take care of it if I'd buy the removal substance. Can you imagine a new, market rate renter doing that??? Never.

I'm about to close on another house with a long term tenant. Rent is going to increase, but it won't be to market.

@Jessica Piff you need to forget the big banks and large lenders. Local credit unions and small, regional banks routinely do mortgages less than $100k. In Ohio I have three mortgages under $50k. Also if you have military connection try Navy Federal

Hi @Frank Lo . I'm from Marion, OH too! Central Ohio is a great area to invest in.

Welcome to BP.. This site is a wealth of information. Send me a private message if want to connect. I've got two rentals in the area and can answer any questions you might have. 

@Nick Pisano,  @Adrienne Green, @Stephen Kehoe, @Russel Brazil, thank you for all of your insight.  I will definitely look into Howard County.  I only checked our Prince George's and Montgomery County so I would have had no idea about the 8-room capability of Howard County without Stephen's post.  I also appreciate the insight into the market rent for the area. I will check out Junehomes.  Lastly, I appreciate Nick pointing out COVID-19's effect on this model.  Strangely enough, I had not considered that as a factor. But for now, and perhaps moving forward, it will be.  Thanks again for all the advice 

Does any person have experience in the D.C./DMV area renting out multiple bedrooms to individual tenants? Has anyone had success renting out individual rooms in the D.C./Northern Virginia/Maryland area? If so, what is the market rate per month for a bedroom?

I am considering purchasing a 6 Bedroom in Capitol Heights, Maryland and renting out each room. For a buy and hold, the house would not be a good investment if I rented out the entire house to a single tenant. But if I rent out each room individually, I can pull in a lot more rent money, creating the possibility of significant cash flow. I live in Northern Virginia and do not plan on staying in the house.

At this point, I am just trying to analyze how much I can expect to get for each bedroom. I am also trying to determine the demand for rooms to rent. I imagine that demand is somewhat a function of the amount I charge for rent, but I am curious if others have been able to get individuals to sign one-year leases to rent out a room.

I have researched the multiple occupancy rules and it appears that Northern Virginia does not allow more than four unrelated individuals to inhabit a house. Maryland offers a slightly better rule for landlords – it will allow up to five unrelated individuals to live in the same house.

I would love to hear from someone who has made this idea work specifically in the D.C. area.

I realize this is management intensive but I feel like the right purchase price and strategy could make this work. I would make sure the house had enough driveway and street parking for each tenant to have a parking space. In addition, I plan to furnish the common areas, pay for the utilities and internet, and pay a maid to come in twice a month to clean.

By the way, I totally stole this idea from Podcast Episode 392 with Todd Baldwin. Any insight is appreciated. Thank you.

@Matthew L. and @Russell Brazil, thank you very much for your insightful responses. I am always amazed at how helpful the community is on BiggerPockets. I will take a closer look at my rent estimate for the townhouse. 

I feel better about the Townhouse knowing it's rentable.