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All Forum Posts by: Kevin Phu

Kevin Phu has started 61 posts and replied 472 times.

Post: Too Many Adults in on SFR House Hack?

Kevin PhuPosted
  • Rental Property Investor
  • San Diego, CA
  • Posts 507
  • Votes 170

Hey BPers,

I have a 4BR 2BA SFR primary residence. I currently rent out two bedrooms, live in the master, and have the fourth unused. The two bedrooms and rented out to two male adults and they share the common bathroom. The bathroom is not big by any means but in my opinion it's not too small (unless you like to dance and party in there). Fits a toilet, single vanity sink, tub/shower, with standing room.

If I rent out the last unused bedroom, I will cut my out of pocket expenses down even more (which was my goal when buying this house to stop renting) and I would end up only paying for utilities and a few hundred bucks of the mortgage.

The reason I haven't rented it out yet though is that I'm concerned it'll force one of the tenants to want to move out due to having to share a bathroom with one more adult. If I was in the tenant's shoes, I wouldn't mind because I obviously wouldn't be in the bathroom with the other person at the same time.

I've kinda gotten the vibe from the tenants that they are happy with the current situation and probably wouldn't like a 3rd person but I haven't asked them flat out. I also feel like as the homeowner/landlord, I shouldn't have to ask them for their opinion but I should still consider it.

What kind of advice does the community have?

Post: What is Your BEST Small-Living Hack?

Kevin PhuPosted
  • Rental Property Investor
  • San Diego, CA
  • Posts 507
  • Votes 170

Read the Life Changing Magic of Tidying Up by Marie Kondo. Changed my perspective of "stuff" in my house and now I keep the thing in my house pretty minimal and I enjoy everything that is there. It's a lot more "comfortable" as well.

Post: Is accelerating amortization beneficial?

Kevin PhuPosted
  • Rental Property Investor
  • San Diego, CA
  • Posts 507
  • Votes 170
Originally posted by @Kevin Touw:

BLUF: Don't make the extra payments.

I wouldn't even think about making the extra payments, especially because you're looking to invest in more real estate based on your profile.  3.625% may be the cheapest money you'll ever get and with the house hack, it seems like most, if not all, of your expenses are covered and your housing costs are pretty cheap.  Which means you should be able to save up cash for your next deal.  You really need to balance the opportunity cost of the interest you'll save with the returns you can make by investing that $400/month or however much you can scrape together.

If you want to get real nerdy, you can download a loan amortization spreadsheet, plug in the extra payments, compare the interest saved each month versus what it'd be if you keep the loan as is, and discount the NPV into today's dollars.  Or you can just trust that, given the low interest rate on your mortgage and the length of time it'd take to realize the savings (i.e. you don't save all $76k today, you accumulate the savings over 20+ years), that $76k becomes a much smaller number in "real" dollars.  Especially when you compare that to some FV calculations of investing that $400/month at a reasonable rate of return.

Yea, it's annoying to earn 1.5-2% in a money market account or a CD ladder as you save up for the next down payment, but it's about having the cash on hand to be able to strike when you find that next deal.

Kevin, thank you for your insight! I took a few more days to think about it and came to the same conclusion as you and have decided to instead take the extra payments I was going to make and put it towards future investments.

Post: Creative ways to increase cash reserves?

Kevin PhuPosted
  • Rental Property Investor
  • San Diego, CA
  • Posts 507
  • Votes 170

Pick up free or cheap items on Craigslist/FB Marketplace and flip them. Uber/Lyft on the weekends if you have an eligible vehicle.

Post: Can anybody suggest a good Accounting Software

Kevin PhuPosted
  • Rental Property Investor
  • San Diego, CA
  • Posts 507
  • Votes 170

Does QBO have an offline dashboard that you can use and have it periodocally sync up to online dashboard?

Post: What invest in RE with 20k

Kevin PhuPosted
  • Rental Property Investor
  • San Diego, CA
  • Posts 507
  • Votes 170

Possibly a non-performing 2nd position lien and get it re-performing?

Post: Mint vs Personal Capital

Kevin PhuPosted
  • Rental Property Investor
  • San Diego, CA
  • Posts 507
  • Votes 170

I have both Mint and PC set up but I haven't actually gone in there to organize and categorize things. I should probably do that...

PC phone app doesn't work on my phone also. Haven't tried Mint phone app though.

Post: Rent payment methods Zelle or Venmo

Kevin PhuPosted
  • Rental Property Investor
  • San Diego, CA
  • Posts 507
  • Votes 170

Has anyone used RentRedi's pay platform? I have a 1 of my two tenants moving out and I'd like to start transitioning to an actual portal or something similar instead of them transfer via ETF.

Post: How do tenants pay their rents?

Kevin PhuPosted
  • Rental Property Investor
  • San Diego, CA
  • Posts 507
  • Votes 170

My two tenants transfer me the rent via EFT. I am going to check out the RentRedi platform though and possibly start using that portal since Pro members get a discount.

Post: How to manage my situation and house hack

Kevin PhuPosted
  • Rental Property Investor
  • San Diego, CA
  • Posts 507
  • Votes 170
Originally posted by @Chaz Mathias:

@Kevin Phu Hi Kevin, the easy solution would be to find a great handyman you can trust. A better long term solution is to rent the rooms out to people you can trust who are also handy. Low their rents slightly to fix small issues. The problems you listed are fairly easy to fix and can be handled by a handy tenant. 

 One tenant is one of my co workers and travels just as much as I do so he's kinda out of the picture. The other tenant works in HR at my company and doesn't travel. However...when we're gone, he keeps a baseball bat next to the front door just in case there is a home invasion. Take a second to think about that...He's not the brightest so I don't trust him to attempt fixing anything on my property. He's moving out in a few weeks though.

I'll have to start looking for a reliable and trustworthy handyman. If anyone lives in the Ventura County, CA area and has any recommendations, please send their info my way.