All Forum Posts by: Ramon Melero

 I know that now. Time has expired and I've closed. I thought the contract due diligence locked in, and I didn't fully read that disclosure that I had a second due diligence period. Mostly my fault, but my agent could've clarified that for me.

Expensive lesson learned to avoid HOAs ☹️

It's mostly my fault for not fully reading that disclosure about the HOA. My agent also didn't clarify that it had a second due diligence period. I thought that that had expired and my EMD was locked in.

I wasn't planning on doing STR. Only 30+ days. I only mentioned airbnb/etc because I can list with a 30 day minimum on there. That should keep me out of the eyes of the city.

 Selling seems like I'm just going to lose a bunch of money. 

Feeling pretty down here. So much for a smooth house hack. I'll have to just try to fly under the radar with longer term renters until I can move out and rent the unit in it's entirety. If the HOA comes pounding on my door I'll have to deal with that then.

I recently bought a house in Las Vegas to try to do a house hack while I save up for a pure investment property. During the purchase I was asking my agent and his assistant to provide me with the HOA bylaws so I could go over them. Due diligence expired and I got the bylaws the day before closing.

I went through the bylaws, and it has a provision that I can only rent the entire unit in it's entirety for at least 3 months.

So I had the option of losing 5k EMD and let go of a great house with pretty much everything I wanted and start the search all over. So I bought it.

I was hoping to rent out by the room, and seems that if I want to do that, I'm going to have to try to fly under the radar of the HOA. I suspect this is a disaster in the making.

Since it's an owner occupied loan, I technically can't rent it out completely without being in violation of the mortgage. 

I was aggressive in trying to get the bylaws from my realtor, but they told m there was nothing they could do to force the sellers agent to provide it. I even tried reaching out to the HOA management company, and they told me they don't provide the bylaws to non-owners.

My business model was going to be 30+ day furnished rentals by the room. 

Should I try to sell the house for a profit while the market is still hot? An issue with that is that it appraised for 400 and I bought it for 420. So I imagine the house will still appraise for 400 and need to find someone willing to pay a little more than 420, and hopefully break even. I want to avoid this because then I'm back to where I started and need to find another property. 

Or should I just wing it and try to fly under the radar and rent the furnished rooms out for about a year while I get another property and rent out the entire unit? I think this is my best option.

Should I stay away from airbnb/booking.com/etc and try to find roommates? This will probably be the safest option, but it's still technically against the HOA, but less chance of neighbors finding out with longer term renters.

Another option is to abandon the house hack idea, but I'm a single guy in a 3 bedroom house. Massive waste of potential income. I can afford it, but I should have just rented/purchased a high rise 1 bedroom by the strip for less money. FML.

Luckily it seems that the HOA management company is large and busy, and I think the only way I would get busted is if one of the neighbors rats me out.

I really hate that I'm in this situation, but I guess I should have known to avoid HOAs. Lesson learned, but what do I do now? 

Fair. Adjusted numbers a bit. Added 15k for furnishing and 3k a year for maintenance (too low?). Upped the vacancy to 15%. 

Leaves me with -$251 neg cash flow, very close to cash flow house hack I can easily service.

https://www.calculator.net/ren...

If I rent out the 4th room at 600 as well, I'll cash flow $258

 https://www.calculator.net/ren...

Do these numbers looks conservative? On airbnb I see rooms listed around 1800 a month for single rooms around there. Roommates.com has rooms listed for 600-800. Of course they might not be getting rented.

So if I get creative with a room or two, I could get 800-1000 per room I think. It could cash flow $930, but I don't want to think I can achieve best case scenario.

https://www.calculator.net/ren...

Just got an offer accepted for a SFH in Las Vegas. Trying to do a house hack living in the master bedroom. Looked all over in the Vegas market for an acceptable MFH , but I could not find a decent one to live in.

404k offer, 399k list

5 Bedroom

3 Bath

2300 sq ft, 6100 sq ft lot

Built 1962

89102 zip code, 10 mins from strip and 10 mins from downtown

These are the basic numbers behind it renting out 3 furnished rooms at $600 , which I think would be conservative. 

https://www.calculator.net/ren...

Cash flows $180 with 5% vacancy and self management. Are these numbers realistic?

Renting 4 rooms out at $800 cash flows $1508, but that's best case scenario.

https://www.calculator.net/ren...

Lot looks big enough that I should be able to maybe expand the house, add another bedroom or two or add an ADU.

Does anyone have experience with ADUs in Las Vegas? Tear apart my plan please :) 

I've studied the Las Vegas R-3 zoning code and I have an ok grip on it. I'm definitely getting expert advice before I buy any land and get burned.

My biggest issue is #2. This is what I'm struggling with.

I definitely want to find a builder to work with, but as you mentioned, pay attention during the build.

I do not have the experience for that stuff. I would expect to save whatever markup the GCs are making, but open yourself up to mistakes/liabilities.  

I'm definitely open to other locations, but I'm fairly attached to Las Vegas. 

 Thanks, I've done alot of saving these past few years so I'm definitely looking forward to having somewhere stable that's mine and generating cash flow.

I'm definitely not planning on doing the building myself, I'd hire that out. I'm providing the initial design then hiring an engineer/architect, down payment, and property management. Of course I'm going to be wasting space in one of the units :)

I agree that having rent checks coming in sooner is better. I'm still open to buying an ok multi-family and rehab, but I'm not finding any I'm interested in and I've been looking for months.  

 I hadn't done much research on that aspect, kind of why I want a pre-developed land. Good idea with the teardown "remodel". I had thought of buying an old building to tear down, but it seems that the demolish/dump cost is pretty high, but to your point, is probably less expensive, and also get's me into more developed neighborhoods.