All Forum Posts by: Ryan Thomson

Meetup in Colorado Springs next week! It's at Goat Patch Brewery. Hope to see you there.

Hi BP Community!

Are you interested in joining a community of local, like-minded real estate investors designed to learn and grow together? If so, then we welcome you to join us for our meetup centered around creating community and sharing experiences related to Real Estate investing and House Hacking in the Colorado Springs area.

Meetup Speaker: Ryan Dekker with over a decade of experience in entrepreneurship, notably founding and leading a successful software company for 13 years before its sale in 2021, Ryan transitioned into the real estate sector. Ryan now manages a portfolio of 15 diverse rental units, specializing in short-term and commercial rentals.

Topic: Come hear about Ryan Dekker’s real estate story. Including his multiple STRs and even his inflatable yurt in Cripple Creek! It will be a good one.

See you all at Goat Patch Brewing!

Meetup Link: https://www.meetup.com/house-hacker-mafia-real-estate-invest...

The fact that you are thinking about this says you are probably pretty aware of people. This bodes well for your management of them as tenants. Here are some of my thoughts on the spaces with the biggest potential for "drama".

Kitchen - I house hacked with 4 people in two different houses. We had designated fridge and freezer shelves. Along with one common shelf. It forces people to stay organized.

Chores - we had a cleaning schedule where we would rotate each week what had to be done. Bathrooms, kitchen, sweep/mop, off week. If you didn't do your chores you got a strike and had to do them and buy everyone beer. If you didn't do it twice in a row you had to do everyone's chores the next week.

Bathrooms - we had 1.5-2 bathrooms. That is certainly ideal for 4+ people in a house.

Here are some things to consider:

It's great to live with friends. When it comes to talking about the house rules and rent on time be a landlord. Treat it like a business from the beginning so they will take you seriously. You'll have less drama and be able to enjoy living together as friends.

How to charge rent? - set them up on automatic payments with an online rental property software. I use apartments.com. This allows them to upload proof of renter's insurance and set up automatic rent payments.

Common items to include? - you can include utilities or not. Up to you. I would make tenants pay for them so they are incentivized to cut down on their utility use.

Should I have them sign some kind of paper work or documents outlining the terms? - YES!! Get a lease. When there is something agreed to in writing it reduces the chance of "he said, she said", hurt feelings, misunderstandings, etc. All things that could ruin friendships. Leases, although it feels too formal to do with friends, are really important should their be any disagreements.

In Colorado Springs, we use leases for bedrooms with common shared areas (like bathrooms and family rooms).

@Codey Wendel

The amount of Interest exceeding the purchase price is not surprising when buying a house on a 30 year mortgage. I wouldn't be very concerned with that statistic. You'll also pay more than a mortgage in rent if you rent for the next 30 years. 

In Colorado Springs, we have a program that allows my house hackers to buy a house for $1,000 and the rest is covered with a 0% loan. The income limit is 160k! So most people qualify. See if there is something like that in your area. Then you could buy now before competition becomes crazy again and refinance when rates come down.

Hey @Luis Bencomo! Great questions. 

1. Don't spend forever searching for under value. If you are getting it at value and its reducing your living expenses its a huge win. 

2. Absolutely although I would consider conventional bc they also have 3.5% down loans. 

In Colorado Springs, we have a program that allows my house hackers to buy a house for $1,000 and the rest is covered with a 0% loan. The income limit is 160k! So most people qualify. See if there is something like that in your area. Then you could buy now before competition becomes crazy again and refinance when rates come down.

3. Buy what you can find and get into quickly! 

@Bryce Kennebeck not sure how moving to an LLC impacts your ability to take the primary residence tax benefit. Talk to a CPA for sure.

Best way to get money out of that is going to be a HELOC at this point. Unless rates have dropped or stayed close to the same than a cashout refinance might work and take some money out.

I know lenders (and have used them) in Colorado Springs that are offering 90% LTV HELOCs on investment properties and 95% LTV refinances on primary residences. With some searching, you can find the same in Tampa.

@Michael Saladin great plan! Way better than renting. Often an amazing investment if you do it correctly. Find a realtor that has house hacked and works with house hackers.  

Here are some resources I found really helpful on my journey:

1. For podcasts I really like the House Hacking episodes on Bigger Pockets Podcast and other channels. Here is a playlist with the best House Hacking Podcasts I’ve found: https://open.spotify.com/playlist/4A6uLsPfdWEMmJhG4TSjyb?si=743bb403548f47fb

2. Great beginners guide: https://www.biggerpockets.com/blog/wp-content/uploads/2022/08/Ultimate_Beginners_Guide_BiggerPockets.pdf

3. The Book on House Hacking Strategies by Bigger Pockets is also a fantastic book

4. Happy to talk if you want more advice

5. Connect with a realtor who understands house hacking and has invested themselves

6. Connect with a lender to see what you qualify for and how you can improve that situation

7. Go to local Real Estate meetups and learn from people there

Great questions! @Alex Jacobs

In my opinion, there is NO better way to get started than house hacking. 

It requires the least amount of down payment and therefor the least amount of capital at risk.

I would ask around (lenders/realtors) or google "down payment assistance programs in {insert city or state}. In Colorado Springs, we have a program that allows my house hackers to buy a house for $1,000 and the rest is covered with a 0% loan. The income limit is 160k! So most people qualify. See if there is something like that in your area. Then you could buy now before competition becomes crazy again and refinance when rates come down.

@Account Closed a great house hacking realtor will let you know what you need to do to be ready. Don't be afraid to reach out to that person now. They will be more than happy to help. Let them know your concern about wasting their time. They will be grateful and let you know if you are. 

One thing to consider is finding a down payment assistance program in your state/city. They often cover the downpayment with a loan that carries 0% interest. 

In Colorado Springs, we have a program that allows my house hackers to buy a house for $1,000 and the rest is covered with a 0% loan. The income limit is 160k! So most people qualify. See if there is something like that in your area. Then you could buy now before competition becomes crazy again and refinance when rates come down.