All Forum Posts by: Ryan Thomson

nice @Josh Worthington. My girlfriend and I just bought a duplex and live for free! 

For resources I really like the following House Hacking episodes on Bigger Pockets Podcast: #352, #252, #350, and #249.

Hi @Davis Chem. I agree with everything @Nathan Gesner said. Good resources there. Education is HUGE! I'm impressed that you are thinking about these things already though, so good on you! 

@Grace Wang is right. The House Hacking book is excellent. 

For resources I really like the following House Hacking episodes on Bigger Pockets Podcast: #352, #252, #350, and #249.

Nice! @Matthew Keller

One thing to think about if you are using FHA you have to be like 60-90 miles away in order to use it for the second house. But that's not a problem. Just use a Conventional loan and put 5% down for the next one.

Congrats @Joshua Hughes

I have had a ton of luck with apartments.com (they bought Cozy). I list my rooms for rent here and then they put the listing on several of their affiliate sites. I get a couple interested leads a day. 

Apartments.com is also where I have tenants fill out a background and credit check, set up automated rent payments, and upload renter's insurance. It's pretty sweet and free for me. 

I also have some nice auto messages I use to do the initial "screen" to save my time from the tire kickers and the "is it still available" annoyers. 

Here is my first message: 

Yes it is! We require a 550+ credit score as well as a current job paystub or a co-signer who meets these requirements. The move in date is December 7th and is a month to month lease at $650/month (not including 50-70 a month for utilities). If all that works for you, when is a good time you can see the house? and what is a good number to reach you?

Here is my second message:

I have a couple questions for you to make sure its a good fit for you. Please answer these then we can go from there: What is your Job? Only you? Pets? Move in date? Estimated length of stay? Any questions for me? --

Sometimes my first message (if they seem more serious and put a little effort into their first response): 

I saw your inquiry for my house at {{address}}. It is still available. Would you like to set up a time to see it? Than I go through those two messages above. 

Tips:

1. great photos

2. good description. be clear what you require to cut down on wasting your time.

3. Pre-screen with email or text before you waste your time showing the room

@Nicholas Chagnon its a balance of your comfort and the amount of cash flow you want. You are asking all the right questions though. 

Also I like the idea of buying near UNH as bedroom rentals to a group of college students is much easier than one off bedroom rentals AND they cashflow better. 

AirDNA and talking to other Airbnb renters is a great way to get a ballpark of what you could make on airbnb. Once you have those numbers and how much a bedroom would rent for in your 3/2 house you could make a numbers decision. 

Personally, my guess is airbnbing the 1 bedroom and living in the bigger house while renting out bedrooms to people you want to live with would cashflow the most and be the most comfortable for you. But, I don't like living alone. 

@Rayan Perez Definitely use that VA loan! You earned it. Look into house hacking. Renting rooms or finding a place with a separate unit that already exists or could easily be created is a great way to earn extra cash flow and live for free.

If you do want to get another house in the next year, you could refinance your VA loan into a conventional loan and than reuse your VA loan again. If scaling is on your radar, then thinking through exit plans is very important as it sounds like you may want to scale and move to the next property in a year. Bedroom rentals are a little more work to manage but are a great exit plan. You could buy near a college area and rent to student groups. Other criteria I look for in a SFH house hack: an easy way to split into multiple units, a walk out basement, an ADU, a garage I could convert, or lots of bedrooms.

@Emre E. Good thoughts and questions. I have some thoughts. 

I think thinking through exit plans is very important as it sounds like you may want to scale and move to the next property in a year. Bedroom rentals are a little more work to manage but are a great exit plan. You could buy near a college area and rent to student groups. Other criteria I look for in a SFH house hack: an easy way to split into multiple units, a walk out basement, an ADU, a garage I could convert, or lots of bedrooms.

I wouldn't put 20% down to avoid PMI. If you are doing it as a hedge against risk or a decline then maybe. But PMI is such a low percentage that it's not worth putting 20% down in order avoid. I think about it this way: You are putting a much higher downpayment to avoid PMI. If you calculated that ROI it would be terrible. ROI = (PMI saved/extra downpayment). Put that extra downpayment somewhere else if you are only putting 20% down to avoid PMI.

The other reason I wouldn't put down 20% is that it eats up more cash and prevents you from getting into another property more quickly.

Great idea @Nathan Maier! 

@Rayan Perez The house hack ROI is pretty sweet and a great way to get started.

Happy I could help @Emillio Henry! Student rentals are a great way to go though. Extra cashflow is nice.