All Forum Posts by: Mike Leybourne

Insurance doesn't change unless you're a short term rental unit, and their definition of what 'short term rental' means may vary.  

I don't post my rooms anymore, since they're all taken by various non-profits in the area who know I run this business.  In the beginning though, I used Craigslist, Turbotenant (which doesn't work for room rentals anymore), and Zillow.  I'd say test a few out and see what kind of people you get.  

Oh, also, I think paying for all of the utilities and building that into the cost is better as well.  Obviously that can have it's setbacks with people using more energy, but it's what I've found best. 

@Parker D. My entire portfolio is room rentals.  I won't go into the whole complexity of how I have things set up, but a few things I'll share: 

1. Make sure you have a good home warranty insurance policy (for plumbing, electric, etc.).  I use Homeserve.  They don't have great customer service, but the policy is priceless.

2. I prefer month-to-month leases.

3. Make sure you have the house set up for an easy room rental experience.  Put signs up stating what the trash day is, who to contact for a power outage, etc. etc.

4. Consider how you are going to do your move-in and move-out checklist. 

5. Require a deposit that's at least the cost of a months worth of rent. 

I feel like there's a lot more to consider, but it really depends on who you're renting to and how they're going to treat the house.

@Brian Garlington

I currently can't acquire any new loans since the majority of my rentals are in forbearance so I would be buying cash until I end those forbearances.

I've been looking for a crew, management, and agent in Cleveland as well.  It's tough right now!  I'm looking for my first out of state investment (I'm Seattle based).

I'm in Washington State.  Yes, I'd agree that it's a lot of paperwork, but it's also been very worthwhile (after you get the hang of it).  Washington offers up to $5000 per individual.

LMP is a program that assists landlords with affordable housing tenants.  The idea is that the state understands that there is more risk in affordable housing (damages, unpaid rent, legal costs, etc.) and will help out if expenses are incurred.  Does anyone know if there are other states that have a similar program? 

Hi Andrew, 

Thanks for the info - I spoke with an agent and contractor who said pretty much the same.  I'll start looking into those other areas.  I may end up coming out there at some point - I just have to figure out the best city to invest in.  Seattle/Tacoma is a little too crazy and expensive now.

I currently have roughly 30 rentals in Tacoma, WA and this is my first time looking for an out of state.  All of the homes I have in Tacoma are affordable housing units and are rented by the room (200+ tenants).  My model doesn't need to be the same in Cleveland, but I'd be interested in working with someone who lives in the area and has a part of the business I'm missing (either management or rehab).  Ideally, I'd like to stay within the $50K or lower price point so I can pay cash (then rehab, rent, and refi).