All Forum Posts by: Jonathan Greene

With the upswing in the country's short-term and mid-term rental markets, a unique opportunity is presenting itself to house hackers during a time when it's harder to cash flow than it was a few years ago. You can diversify your house hack inside itself if you combine rental strategies. (I know a lot of investors who are doing this, but I've been surprised to find out that it's a new concept that others haven't considered.)

The more units, the better in this scenario because you can hedge your bets with more units. The diversification comes from using short-term or mid-term in your other unit(s). Of course, you can do this in a stand-alone rental, but numbers are incredibly tight for house hackers now, so I thought it would be better served in this forum.

Let's take a four-family where you house hack one of the units:

1. Unit 1 - you live there

2. Unit 2 - long-term rental (this will usually be with an existing tenant since you already have that running well or in a larger unit that might net the highest rent as a long-term)

3. Unit 3 - mid-term rental (this would be best for the most private unit as most mid-term renters are more concerned with privacy and creature comforts than amenities)

4. Unit 4 - short-term rental (this would be best for a unit with a separate entrance so you reduce the bother to other tenants because the changeovers will be more here)

Is anyone doing all three (LTR, MTR, STR) in their multi or house hack now?

I think it's the best way to A/B test the potential. Mid-term is more likely to work in any market than STR, but I think you would be surprised at how well an STR could do if there are no other options like that in the area (think people's parents or friends coming in for the week(end)).

I've seen a lot of people grimacing at the net-negative house hack (it's just a product of rates and low inventory in a lot of markets) and this is one option to try to recoup some of that loss.

That last part is a great point. By calling this person a deal killer, people could interpret that as meaning they only kill deals. I meant it like you said, so I gave the five traits to back up their persona.

Cheerleaders are great to have, but I find that a lot of new investors only want that because it feels better. That's short-term. Long-term, you need a voice of reason. We all get hopped up over a deal. I want someone to point out all the flaws. It may help me negotiate or at least acknowledge the risk.

Philly has a ton of opportunity, but since you are new to the area, I would suggest waiting six months before you buy anything there so you can really understand the block construction of the area. Philly, like a lot of major US cities, is very block by block. A block can transition from appreciating to depreciating within ten houses so you have to learn where it is ebbing and flowing. There are plenty of deals in Philly on and off-market from wholesalers, who are pretty decent in Philly compared to other places.

You will need to get your GC license here and learn the permitting process and necessity here as well. It would be best to befriend a local contractor or even help one out on a job to see any differences from your past eight years doing it in another country. Good luck!

I can't be offended because you rarely make any sense, but are entitled to your opinion. Who am I affiliated with? I don't advertise anything at all and never have in more than ten years on the site. You didn't address the post, you addressed me. You probably have an alert for when I post so you can disagree. It's pretty sad, but good luck staying silent on the sidelines until my next post which has no other purpose than to help new investors. Seek help.

In lieu of living quarters, and if your area doesn't really need the value of a garage due to weather, the best uses I have seen are full-service home offices or gyms.

I think you need to relax. You are two posts in and already going to personal insults. I read your post and it didn't make sense because you hadn't edited it yet. Your personal bias is overwhelmingly appararent and renders most of what you say, when you respond to me, useless. Some of your other posts are pretty solid, but you need to get some help or take down the photos of me on your wall. It's creepy.

None of that makes sense to me. I don't even know what you mean. I described the deal killer persona in the post. You are making it into a negative person, which I agree, is not what anyone needs. I also agree that everyone needs to know how to manage risk, but you can't manage risk on your first deal if you only have cheerleaders and no impartial third party.

Yes. I think we develop that alter ego, but new investors just don't have it in the beginning because they don't have enough reps to know the difference between a good deal and a bad deal. They can't see what's not obvious.

Keep it simple is some of the best life advice and definitely applies to someone's first deal. Take a single, don't try to stretch it for a double or triple when you aren't that fast.

The adage about who you surround yourself with is accurate. The five people you spend the most time with will influence you. But as a new investor, sometimes this advice leads you to only have cheerleaders in your life. Don't get me wrong, cheerleaders are essential - they make you feel good, are always there to lift you, and cheer you on no matter what. The only problem is that last part - no matter what.

Every new investor needs a "deal killer" in their life. This is why:

1. A deal killer is a voice of reason when you are emotionally attached to a shiny object (it could be a property or a new guru course).

2. A deal killer has no emotions. They are focused on the numbers and your well-being when you aren't.

3. A deal killer has nothing to gain from telling you it's a bad deal. (For this, your deal killer can not be a direct competitor. You must have built the trust to know they aren't telling you it's bad so they can take it. Real deal killers don't do that.)

4. A deal killer doesn't shy away from conflict. When you are new to the game, agents, wholesalers, other investors, and even you can push you around. A deal killer doesn't mind hopping into the fray and telling everyone the truth.

5. A deal killer has the experience that you don't. They can see the things you are missing because they have missed them before and they know what happens when they do.

So, make sure you have those top five in your life. The ones that motivate you and keep you on track. But don't discount a deal killer as negative when they only work in your best interests. When you are new, you can be your worst enemy (due to lack of knowledge, ego, and FOMO).

If you are new, do you have a person who tells you that some deals suck?

If you are experienced, how important do you think it is to know a deal killer?

3 BRRRRs is great. All in Indiana? Tell everyone more about some of the numbers and pros and cons of your process so far. People newer than you can get a lot of insight from that.