All Forum Posts by: Ryan Duphorn

Just recently listened to a podcast on mid-term rentals specifically for traveling nurses but could also include corporate professionals or large-scale construction project workers. In addition to just posting your property on furnished finder, they were reaching out and building connections with hospital HR departments and recruiters to help place nurses in properties. Has anyone done this and have had success? The podcast also talked about insurance claim re-housing where families lose their homes to a tragedy and get replaced through their insurance. However I mainly wanted to ask about getting housing leases from traveling nurses.

I currently have a 5 bed 2 bath, 1920 sqft home in a great neighborhood located less than 1.5 miles from 2 large hospitals here outside of Richmond. How or would a 5 bedroom house work in terms of landing multiple nurses in a single home? For example, say it were a 2bd/1ba property, I would just list it for 1 nurse to stay and I would hit my cash flow goal. But with 5 bedrooms I'll need at least 2-3 nurses to stay there at a time. If I just make a single listing on FF for this 5/2 and say list it for $4000 / month (market in this area), how would I get 2-3 random nurses to commit to the property? Would I have to find 1 nurse and tell him/her to find other coworkers to join? I'm assuming traveling nurses don't know many people in the area and would know someone to live with. There's not going to be a nurse who will pay $4000 themselves to rent a 5/2 and the property wouldn't cash flow if I rent to 1 nurse for lets say $1400 / month. 

 This is super helpful thank you. The addition was permitted when originally done.

I have a 5 bedroom / 2 bathroom single family brick rancher. It was originally a 4bd 1 ba home (1 room being an office room but classifies as a bedroom) but the original owner added an addition off the back of the house. The addition includes a large bedroom, bathroom, and walk in closet. This addition just includes double doors that lead to the original house. What are your thoughts on blocking off the double doors and using it as a separate, private unit. The addition has its own driveway that leads to the back of the house. The addition has egress windows also. I would need to add plumbing for the kitchenette sink and electrical for appliances but I'm not sure if my breaker has enough room for another 240v for the stove. Currently as a 5 bd 2 ba it rents for $2500 but I'm finding it hard to increase rent just due to the fact that there's not many people out there looking for a 5/2 to rent or else they would just buy. My current tenant now only occupies 4 of the bedrooms.

Numbers

Current rent - $2500

If I split into 2 units, unit 1 (4 bd 1 ba) would rent for $1800-1900 and unit 2 (studio 1 bd 1 ba) would rent for $1100-1200. This studio transformation would bring me about an extra $500-600. I'm not sure the cost for the kitchenette install with rough in work but I have great relationships with my subs and historically keep my reno costs down. 

I'm having trouble deciding on whether to hire a PM for rental 1.

I close on my 2nd house with owner occupied loan next week. I've been house hacking rental 1 and will be moving into rental 2 with my tenant/roomate (cool dude). Rental 2 will need a few weeks to renovate before fully moving in (paint, cabinets, flooring, tile). I will be doing all that work myself then using plumbers & electricians to trim out the house. My fear is losing money in vacancy and regretting not just hiring a PM to quickly onboard and screen a tenant properly. A good PM around me charges 30% of rent to onboard then manage it for 10% / mo (only 1 unit to manage). My payment is $980 and market rent for my neighborhood is $2000 (per multiple PM's, 4 bed 2 bath). So roughly $3k a year expense for PM minus any maintenance costs. There's room there to pay a PM but I also work in construction in homebuilding so I have a team of trades/punch guys to manage repairs. 

But if I end up eating monthly vacancy expenses at rental 1 because I can't efficiently onboard a tenant for applications, screenings, showings, etc while renovating / moving into rental 2, than that $600 onboard fee would sound nice to pay for assuming they can get me a good tenant within a few weeks. But I know I can easily manage just 1 rental myself since it's local and I lived in it and renovated it myself and know the ins and outs of the home. 

Tried to keep this short as possible while still providing as much info as possible given my situation. Thanks

I'm 25 and just closed on my 2nd property that I will be owner occupying / house hacking and moving out of my current house hack to rent out to a family/tenant. It's a 4 bed 2 bath house. I found a local property management company that offers a "lease only service" meaning that they will take pics, market/list the property for rent, handle showings, screenings, and paperwork to onboard the tenant and then hand it over to me to manage. I've decided that I want to manage it myself for at least a year to not only save costs but because the property is local to my next one, I've lived in it for over a year so I know the maintenance of the home, and I'm a PM for a home builder so I have all the handyman/tradesmen relationships that I can use for any repairs. The PM company charges a fee equal to first months rent for this lease only service. I would rent the property for $2000. Do you think it's worth $2000 to have a company handle the full tenant onboarding process?

Since I'm young and haven't done this leasing/renting out process before (my house hack roomates have been friends), I'm afraid of onboarding the wrong tenant or drafting up paperwork/leases that doesn't fully protect me as a landlord. Plus doing a bunch of showings and processing applications doesn't sound too fun either. Is the tenant onboarding process really that difficult or strenuous to where it's worth utilizing this lease only service despite the fairly hefty fee for a process that will probably take the PM company roughly 2-3 weeks to do?

I'm 25 and just closed on my 2nd property that I will be owner occupying / house hacking and moving out of my current house hack to rent out to a family/tenant. It's a 4 bed 2 bath house. I found a local property management company that offers a "lease only service" meaning that they will take pics, market/list the property for rent, handle showings, screenings, and paperwork to onboard the tenant and then hand it over to me to manage. I've decided that I want to manage it myself for at least a year to not only save costs but because the property is local to my next one, I've lived in it for over a year so I know the maintenance of the home, and I'm a PM for a home builder so I have all the handyman/tradesmen relationships that I can use for any repairs. The PM company charges a fee equal to first months rent for this lease only service. I would rent the property for $2000. Do you think it's worth $2000 to have a company handle the full tenant onboarding process?

Since I'm young and haven't done this leasing/renting out process before (my house hack roomates have been friends), I'm afraid of onboarding the wrong tenant or drafting up paperwork/leases that doesn't fully protect me as a landlord. Plus doing a bunch of showings and processing applications doesn't sound too fun either. Is the tenant onboarding process really that difficult or strenuous to where it's worth utilizing this lease only service despite the fairly hefty fee for a process that will probably take the PM company roughly 2-3 weeks to do?

I'm 25 yrs old with 2 rental properties, one of them I currently live / house hack in. My debate is whether to hold or sell rental 1.

Rental 1: Bought in 2021 at 3.25% interest for way below market value at $165k. 4 bed 2 bath 1900 sqft. It currently rents for $1800 / mo & tenants pay utilities. My monthly payment is $980. Cheap taxes for the area. Insurance is $970 / year. I could sell for $290-300k (per COMPS & multiple realtor friends who have visited the house). C+ neighborhood.

***I have lived in rental 1 for (2 out of past 5) years so no capital gains taxes right?

Rental 2: I currently house hack this and my tenant pays me $750 / mo split utilities. Great appreciating neighborhood in best part of the greater city. Huge detached garage that supports my side business (woodworking & carpentry). I use it as a workshop. Bought in 2023 at 7% interest at $280k. Worth about $350k as it stands but after continual upgrades COMPS are at $370-380k (after 2-5 years $400k from appreciation). 4 bed 2 bath so I have space to add another tenant but don't want to cram it. I'm not worried about living for free here as the appreciation alone for this neighborhood will turn me a profit down the road.

The large cash flow from rental 1 also supports me living cheaply in rental 2. However, If I sell rental 1, I'm walking away with roughly $70k (300k - 20k *realtor fee* - 9k *closing costs* - 154k *loan balance* - 45k *reno costs* = $70k). Being only 25 yrs old with a slightly above average salary, I don't have more than $30k liquid cash so I would be more than doubling my current liquid bank holdings.

I know the answer to these type of questions is situation/goal based but i tried to lay out my situation as best as possible. My goal is to leave my 9-5 within next 5-10 years and be able to live off my real estate acquisitions.

@Doug Smith understood thank you

@Doug Smith In my post I mentioned the origination fee is $4670 and the underwriting fee is $1055. No rate buy down. Not a veterans loan. My credit score is excellent.

$269,800 loan. Loan origination charges are $4,670 (origination fee) and $1055 (underwriting fee). My loan is a 5% down owner occupied conventional loan at 7.5% interest. At first glance, this seemed high to me but I'm not sure if it's because of the current mortgage market / industry as a whole. I'm already under contract with a less than 30 day closing timeline so time isn't quite on my side.

I pulled up my closing costs from my last home purchase in Nov of 2021 and it was $1200 for a 3% down conventional owner occupied loan at 3.25% interest. Again, not sure if the market has shifted.