All Forum Posts by: Ryan Weiss

Hey Nathan! Welcome. House-hacking is an easy way to get started. It's how I got started and it has jump started my financial success. I recommend going to local real estate meetups and networking with as many people as possible. 

Hi Josh,

I run a property management company in Manchester, NH. We would consider an intern and work with a lot of significant investors in the area. It may be a nice way to get your feet wet. Please reach out to me if that interests you. 

Nice man, I'm also owner-occupy house hacking in Manchester currently. It rocks to be living rent-free. What percentage did you use for vacancy, capex, and repairs? Those numbers seem a bit low to me. 

Awesome! Can't wait for this meeting!!!

Hi Murali, 

I am a property manager in Manchester, NH. I would be happy to answer any questions you may have!

Yes, we use carpet only in the bedrooms. Sounds like we are doing the same thing!

Originally posted by @John L DeVitto Jr:

Nice work Ryan! All depends on how much work the unit needs, but our go to upgrades is fresh paint and vinyl flooring. Love the vinyl floors, relatively cheap, can take a beating (meaning long lasting), and makes the place look a ton better. If I'm doing a decent amount of work to the unit and notice the cabinets could need an upgrade, I will rip them out and put new ones without hesitation. We find we get much more qualified tenants and can raise the rent a decent amount with an upgraded kitchen. (the top 2 pics are 2 different units but same layout, we did put the same white cabinets in that unit on top left, just didn't replace the floor as it was already vinyl and in good shape. The top right pic had stick on flooring that was peeling that we replaces with the vinyl flooring you see). PS I like your choice for counter top ;)

Wow, looks great! 

Before & After Photos of one of our unit turns. Bringing a consistent product to market is key to building customer loyalty.

We have interested tenants calling us now saying things like: "We saw an apartment that you had listed previously that was rented. Do you have any other apartments that look like that one? It was beautiful."

Consistently bringing high-quality apartments to the rental market will increase your brand value! What are you go-to upgrades when turning over a unit? We love new floors and fresh paint.

You will not believe how much value was built by separating the electrical in this five-unit building.

This five-unit property was purchased with the plan of increasing income, reducing expenses, and then refinancing (BRRR). One of the strategies we came up with was separating the electric and charging it back to the tenants. Check out these numbers:

Monthly Electric cost before separation: $450
Total Project cost to separate electric: $9,500
Project electric cost after separation: $100
Net monthly savings: $350
Net annual savings: $4,200

If you apply a 7% Cap Rate to the annual savings of $4,200 we are looking at a $60,000 ($4,200/7%) increase in the property value! Well worth the $9,500 spent.

We love taking on and discussing these kinds of money saving projects! DM us if you'd like to discuss more. Have you ever tried to use and other utility saving strategies like RUBS (ratio utility billing service)?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Manchester.

Purchase price: $340,000
Cash invested: $9,000

Ryan Weiss began house hacking in September of 2019. He purchased a three-unit multifamily using an FHA loan. He currently owner-occupies this property and has his mortgage completely paid by the rents he collects.

What made you interested in investing in this type of deal?

I knew that house hacking was a great way to get started in real estate, but I had no idea how accessible this method of investing is. With a small down payment due to FHA financing I am now living rent-free, and the rents I collect completely cover my mortgage!

How did you find this deal and how did you negotiate it?

I found this deal through the property management company I previously worked at. I began by asking my broker if any of our investors would be willing to sell me their small multi-family. One of our investors said they would like to sell their triplex so they could do a 1031 exchange into a larger property. They presented the price and I happily agreed, and they were successfully able to upgrade to a seven-unit. Win-Win!

How did you finance this deal?

FHA financing with only $9,000 out of pocket! I requested $5,000 back from the seller at closing and received $9,500 in down payment assistance from the state of New Hampshire.

How did you add value to the deal?

I chose to live in the worst-condition apartment and perform a "live-in-flip." Since living here we have painted every room, upgraded all light fixtures, replaced the tub surround, added a dishwasher and some new cabinets, and we have done some other miscellaneous repairs.

What was the outcome?

I'm living rent-free and loving it! Saving up cash now for my next deal.

Lessons learned? Challenges?

Evict trouble tenants early, don't delay. Don't be too picky about your first deal, just get in the game! Ask and you shall receive, just don't forget to ask. Your goals are much closer than you realize.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with Elizabeth Going as my mortgage specialist and she is awesome!!!