All Forum Posts by: Jonathan Viero

Three weeks ago purchased a single family home in Running Springs, CA. I need help figuring out what strategy of house hacking I will use. My loan is a conventional primary residence mortgage. I will need to live on the property and am trying to figure out how to house hack this deal.

Here are my expenses

$1895 for Mortgage, Insurance, and Taxes

$350 Average Monthly Utilities

Total Monthly $2255

The house is 4 bedroom, 3 bath, that would could rent full time for $2300. I am considering renting it by the room, by the room on Air BNB, by the bed to utility workers, or by the room to the elderly. I have run general numbers on each of these strategies and could use some guidance of which strategy to go for.

#1 Renting it by the room: 

$800 each for the two main floor bedrooms (including utilities)

$1000 for the master

Total Monthly $2600

#2 Renting it by the room on Air Bnb

(Best Case Scenario) At 80% occupancy charging on average $95 per room = $2000 per room

Total $ 6120

(Worst Case Scenario) At 50% occupancy charging on average $75 per room = $1000 per room

Total $ 3000

#3 Renting Beds to local Utility Workers

3 Twin Beds in the Master Each $600 per month

2 Bedrooms on the main floor each $800 per month

Total Monthly $3400

#4 Renting to the elderly 

$1200 for the master

$1000 for each main for bedroom

Total Monthly $3400

I will be staying in the basement and renovating each bedroom (got to take of wall paper and paint) over the next couple months. So I could use some flexibility with being able to work on the house. I am limited on capital so I juggling how I am going to pay the margate and fix the place up while finding rental income. My other concern is management time as I am a full time real estate agent and am very busy. Let me know your thoughts.

@Jake Thornton

Welcome Jake I live in Lake Arrowhead full time and would love to work with you! Direct message me and let’s talk.

I have been working with an agent at a brokerage and he has been mentoring me for about a year now. He is a good life coach and a great personal relationship person but I feel he lacks as far a sales experience and how to sell houses at a high level. I don’t have my license but I will get one soon and I am going into this field wanting a good mentor. I recently met an agent from another brokerage who has had me host open houses for him occasionally. He is very successful and has trained hundreds of agents to be good salespeople. I feel that he would be a great real estate sales trainer and I would learn a lot. But the catch is and I just learned that a lot of people don’t have a good opinion of him. I don’t want any drama but I understand that I need to associate myself with good people, but I also need sales training. What should I do I am stuck. Do I choose one or keep working with both? Do I work under one and get mentor ship from another? How can I make everybody win because they both want me to work for them?

@Paul Sandhu how you find that data about where people are employed. I would like to do so for my area

Any suggestions on books to read on the specific subject of vacations rentals, finding my first deal, how to finance it? Thanks in advance

@Tanner Marsey

Thanks man

@Tanner Marsey

What vacancy rate should I plug in? I originally calculated two sets of data. One was best scenario that would spit out $19k and my worst case scenario using below market rate year round and 12 vacant days a month it still came out profitable of $6k. I figured that I’ll land some where between 6k-19k realistically which sounds reasonable to me. However I’ll adjust my Utilities, Insurance, and expenses and see if that has any big effect.

@Wendy Schultz I have had a hard time finding material and resources specifically on Vaca Rentals any suggestions on that? I have read 3 real estate investing books, and have been working very often with a mentor/agent/property manager. What else would you recommend I do as prep before I pull the trigger on a deal when it comes?

@Alex Bekeza Would I pay the mortgage or would it still be rent and I just have title?

@William Green I am not sure what you mean by checking Homeaway. Is that a website sounds quite and I am curious.