All Forum Posts by: Kenton LeVay

Hey Danielle, I think it a lot will depend on where the property is. For example, a property in Wisconsin will likely have different needs than a house in Florida, etc.

Awesome that you're getting started so early! My advice would be soak up knowledge as much as possible (books, podcasts, webinars, etc.). Figure out what you are interested in and meet investors that are doing that, figure out where you can add value to them and create an apprenticeship out of it. You're gonna kill it!

Congrats on the house! So I definitely would be up-front with the insurance companies and tell them the number of "boarders" you'll have. If you skirt around it and then try to make a claim you would be in a WAY worse spot than if you were just truthful up front. The reason they have a limit on "boarders" is because it's more risk for them, also I know there are some municipalities that limit the amount of non-related adults that can live together. Regardless, I'm not sure if there are any alternative policies other than just getting investment property insurance (similar to if you bought a multi-family and weren't house hacking). This is likely a higher premium so just work that into your numbers and you should be good.

Nice to have the GC as a business partner! Takes out the big risk of hiring the right contractor, congrats!

I would reach out to the BP community or your agent and compile a list of 3-4 contractors for the rehab. Keep in mind the value of the property. Don't skimp out and hire the cheapest contractor, you'll regret it 9/10 times.

Once you get the inspection back, identify things that will need to get fixed that aren't in scope for your original rehab. For example: if you're planning on remodeling the kitchen, and the inspector notices the lock doesn't work on one of the bedroom doors, call it out to your contractor when they're giving you the bid. Inspections will often times include things that are high and low priorities. It would also be a good idea to prioritize those fixes based on your budget, but again, don't skimp.

Yeah man. I've gone through a similar thing myself. I bought a SFH to do a house hack. It didn't ~need~ that many repairs necessarily, but I wanted to do value-add reno's to refinance it and get my cash out. I started the reno by doing it myself with very little experience and bit off more than I could chew. I hired a contractor to finish the work but needed to fire him because of bad work, not showing up, etc. I've had lingering construction at this house since I moved in almost 2 years ago, which can really wear on you. I know in my head that this is just a learning experience on a long and winding road to Financial Independence but my god, it's been a grind that has taught me so much more than how to lay tile...

Looking forward to it!

Congrats on the house! Buying in the Bay Area can be like conquering a mountain itself! Welcome to the community :)

Weird. Maybe ask an agent in the area to see if they know anything about it? Even so, I still wouldn't do anything illegal because just because the city of Nashville isn't cracking down on this now, it doesn't mean they won't...just stick to 3 or less bedrooms (or more as long as it still cash flows with 3 tenets). I still think you'd get the best bang for your buck renting by the room or AirBnb/Vrbo in a city like Nashville

That sounds like an interesting law. I find it hard to believe a city like Nashville cracks down on homeowners with 3+ unrelated adults living together when there are two large universities in the city. Surely there are living situations with 3+ college students living together...anyway, I wouldn't do anything illegal but investigate further to see the details/loopholes around that law. If all else fails, limit your search to 3 bedrooms or less per unit and maybe even try short term/vacation rentals to get a higher margin.