All Forum Posts by: Kyle Tipton

@Spencer Cornelia. those are some great strategies and ideas. You bring up providing a safe place to live, so do you put coded key pads on each door, security cameras in the shared living areas or anything that's abnormal to traditional living. you also mention providing an enjoyable living experience, do you do anything in particular to accomplish this (extra TVs in the LR or a pool table, etc.)

I checked out that website and have been searching for something similar in my area. those room set ups for 500-600 bucks look awesome but what is the quality? Will they last through multiple tenants? that's a big reason i have been looking at second hand stores. I want solid wood that hopefully last a while. 

@Nicole Marshall. I love the idea of refurnishing furniture from a second hand store. I have also been looking at doing the same thing and going with the same set up you went with in the bedrooms. Do you take the same approach to the shared living areas?

I'm actually looking in an area close by you, over towards FIT. I have a buddy that lives in Melbourne and we talk about doing this all the time. One of the biggest issues we are seeing is how do we get our tenants to live together and be comfortable since neither of us wont actually be living there to be that nucleus of the house. Do you allow Co-ed and is that ever an issue? have you had students before?

thanks, for the reply!

@Spencer Cornelia

Thanks for taking the time to put that together. Your numbers are awesome and exactly why I want to get in this market. Great information and everything you pointed it is along the lines of what I’m trying to fully understand before taking the plunge. There are a lot of issues that could come from this time of renting that you don’t deal with in traditional landlording.

I’m curious, what’s your take on furnishing? Do you buy nice second hand stuff, or cheaper on sale items at big box stores or do you build your furniture out of lumber to extent its life and cut cost. I’ve been looking at several different ways to skin it and I feel like this is a huge difference as well.

Also, are you renting primarily to college students and is your turnover pretty quick?

Thanks, again!

Greetings BP,

I have been running numbers and looking into renting a single rooms to college students vice entire homes to families. All the numbers I run lead to positive cash flow, but I’d love to hear from some investors that actually have experience in this area. I feel like if it were this easy, everyone would be doing it. Thanks, in advance.

@Rich Somers

Hey man, when and where are you guys meeting ? Thanks!

 @Matt M 

to clarify, i by no means am saying one should get it and the other shouldn't. I'm saying in my experience, I've seen it to be more common with single crew handymen than GC's with a full crew. I also, agree past relationships play a big part in this. When you have worked with someone before, your more likely to not require a down payment... that's the rules of business and why its so important to network and know professionals in different fields. I also have paid out before a job was started because i didn't have any other choice. So, I've seen it come in all shapes and colors. I'm purely stating that in general, i don't like to pay upfront especially if its for crew wages and not material.... i personally think that's a red flag. That's all I'm expressing, it wasn't meant as a jab towards GCs. everyone's got to eat, i get that. 

@Darla Smith

I gotta side with the majority here. Asking for money upfront is typically a huge red flag. Usually it’s for material when they ask and even then it’s a start up amount. This is common for “ handymen” on small jobs. But a GC on what seems to be a big job based off your amount. I’m afraid I’d be going with someone else. Did they provide you with an itemized list or anything or did they just say its for labor?

And is this the only quote you got? I’d recommend getting a couple done before starting the job.

Good luck

@Parker Brand. I have a rental in that area (LTR though) and I want to make sure you’re including wind and hail into your calculations. That additional cost is lost a lot with out of towners. Just a friendly reminder. Cheers!

@Brad Hammond like others mentioned. I’d consider combining two units and making it a 4-plex with option to turn back into a 5 if the buyer desires. I think with it being a 5, your buyers market is just so small. Everyone wanting to house hack or get started isn’t a potential buyer. Just something to consider if you can’t sell and need to move it.

@Anthony Rosa I believe you are partially right. I think a "second home" also qualifies for interest rate deduction, so primary and secondary count. I also believe with the new tax code, you have to use the HELOC for house renovations and not just spending money. The IRS states it must increase value and improves the home, items like paint or replacing carpet is not acceptable for reductions. I am by no means a tax guru or CPA, this is all from what I've read doing my own research. so take it at face value.