All Forum Posts by: Kenny Smith

@Ed Johnson

Welcome to BiggerPockets! You have hit the JACKPOT of resources for real estate investors. You can literally find answers to all of your questions within the confines of this site. What’s the best way to get started using BiggerPockets?

1. Subscribe to the BiggerPockets Money and Rookie Podcasts

2. Attend the FREE WEBINARS

3. Attend a Meetup in your area/virtual meet ups

4. Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy

5. Peruse the forums! Ask questions! Answer questions! If you are consistent with learning real estate over the next 4-6 months, you’ll be ready to purchase your first (or next) property in NO TIME!

Good Luck,

Kenny

@Bob Foglia

I'd also recommend just getting it done for peace of mind.  If you rented out your unit without one, and god forbid someone got injured or worst in a fire, you'd most likely be held liable.

@Gregg Camp

You're thinking the right way for sure.  For a 5 bed, 3 bath house, it may be difficult to get random travel nurses to all share a 5 bedroom place.  I personally have never done it, so I'm not saying it can't be done, but may have to vacancy issues.  What I'd recommend is checking out furnishedfinder.com.  This site is the primary website that travel nurses use to find MTR's.  Check out the map and see what other properties are being listed for.

Personally, I think a larger home with 5 beds, is set up perfectly for a rent by the room strategy.

If you do want to look at an STR option, check out AirDNA.com. They can give you some stats on your area as well for STR's. Also, check out the airbnb map for your area to see what your competition would be and what people are charging.

Best of luck!

@Rachel Perl

If it won't sell, I'd looking at other options for 6-9 months until the busier spring/summer selling season.  I know St Pete is an excellent travel destination.  Take a look at maybe turning it into an airbnb or medium term rental for the short term.  Yes, it is a lot of work, but is it better to keep lowering the price and lose more money, or wait until prices can bounce back and try again.

I don't know your financial situation on it, but take a look at the numbers, and ask some local investors on what their opinion of it is regarding rental returns.  If you are in a hard money loan, it may limit this option, but you could always refinance into a conventional loan for the time being.

Best of luck!

@Account Closed

Nice work! That is a massive ROI..Does your interest only loan have a balloon payment at the end of the term? If so, are you planning on refinancing into a conventional mortgage when rates drop?

Best of luck.

@Mary Frazier

Congratulations! I like you, have the same feeling about STR's! They can be a lot of work sometimes, but the payoff is so rewarding. Huge upside if you do it the right way, and don't cut any corners with your home or your guests.

Best of luck.

Investment Info:

5 bed, 2 bath Single Family Home in Westminster, CO bought in December 2021.

Purchase price: $505,000
Cash invested: $63,000

House hack! We converted this single family home into a quasi duplex. Separating the downstairs from the upstairs (door connecting both units to ensure it is not considered an ADU or duplex). We live in the upstairs and airbnb the basement.

What made you interested in investing in this type of deal?

Our strategy has been to buy 1 of these every year and live in it, so we can take out an owner occupied loan vs. an investment loan.  We are able to scale at a rapid pace and we want to do now before we start having kids.

How did you find this deal and how did you negotiate it?

MLS, self represented as I am an agent.

How did you finance this deal?

5% conventional loan, with 2.8% (realtor commission) towards closing costs and remaining back at closing

How did you add value to the deal?

We added a second kitchen in the basement, a few cosmetic items, new landscaping, central a/c, new electrical panel to accommodate the extra kitchen, and ran additional laundry upstairs.

What was the outcome?

Living for free upstairs, and cash flow during the busy months!  If you include the unit we live in, projected cash flow moving out will be $3k per month.

Lessons learned? Challenges?

Be creative!  The market always has opportunities, you just need to know where to look to find them.  Work with the right people that specialize in what you are trying to do!

Good to know! That is new to me, I was always under the impression only one FHA at a time. Thanks.

@Erica Ho

Another thing to note is you can only have 1 FHA loan at any one time. If you buy this next one with an FHA loan, just know you'll need to re-fi out of that one before you can take out another one.

Best of luck!

@Noah Field

Welcome to BiggerPockets! You have hit the JACKPOT of resources for real estate investors. You can literally find answers to all of your questions within the confines of this site. What’s the best way to get started using BiggerPockets?

1. Subscribe to the BiggerPockets Money and Rookie Podcasts

2. Attend the FREE WEBINARS

3. Attend a Meetup in your area/virtual meet ups

4. Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy

5. Peruse the forums! Ask questions! Answer questions! If you are consistent with learning real estate over the next 4-6 months, you’ll be ready to purchase your first (or next) property in NO TIME!

Good Luck,

Kenny