All Forum Posts by: Erik Epperson

Is there any one on here Renting to Sex offenders? I am very interested in this un tapped market. I personally know some one in this situation. They are paying 1k for a bedroom. In the same house there are rooms where people pay 600 to share with 2 others. The house is owned by a church, and there are waiting list. Many landlords won't rent to them, houses need to be away from schools and parks. I have studied this market and belive there is alot of un tapped potential.

If you were smart enough to consider this. And are currently doing it message me.

Also interested in Rent by the room information in General.

You didn't ask this question, perhaps you didn't know to ask, but research tells us there is "no such thing as a "reformed" sex offender.

Completely untrue. They have the lowest recitivism rate of any crime group. And in general return to prison over "technical violations ". Aka breaking one of the numerous stringent rules imposed on them. You can also become a sex offender for pissing in public, having sex in a car in public, or made a poor choice as a young person.

Either Way, as a landlord it's not your Job to be Judge and Jury but to collect rent and maintain your property. I'll take the money you leave on the table.

Believe as you wish

"While recidivism has long been a concern of criminal justice practitioners and policymakers, it has received renewed attention in recent years due to the record number of convicted offenders living in our communities. Research has demonstrated that repeat offenders account for a disproportionate amount of crime and that offenders released from prison are arrested at rates 30 to 45 times higher than the general population" (Rosenfeld, Wallman, & Formango, 2005).

They aren't committing new sex crimes. They have strict rules and no where to live so they end up breaking laws. Like not showing up to register

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Quote from @Bruce Woodruff:

Quote from @Erik Epperson:

Quote from @Bruce Woodruff:

@Erik Epperson I know you're looking outside the box to reach your goals and you want to make as much money as possible.....But.....there is a point where it becomes not worth it. You rent to these people knwing their past history and something bad happens, and you will be on the hotseat.

As I understood your first post, you are a fun-seeker, looking to move towards your goal....adding significant risk like this may/may not help you move faster, but the downside is the risk.

Chasing the almighty dollar as a primary course of action is usually a not-smart move....take it easy, take it slow and chase fun.

I do not believe a landlord would be held liable for something a renter does would they?

Yes, Look it up. If you knowingly rent to a S.O. and you have a minor or couple with child, or woman, and the S.O. attacks or exposes to these other tenants.....yep, you will be in court and probably worse....

TBH this whole 'room rental' thing that you're on is risky...possibly lucrative, but not that great really....and a lot of risk. MAybe rent an entire house...but room rental? People living with one of these guys? And you have to/should disclose this to the other renters if you're a decent person. IMO, you're just asking for trouble....but you do you. I like my life nice and simple..and profitable.

I would just go with a STR if you want big bucks. 2-5 times the profit of a LTR.

No if I rented to SOs it would only be them. But I didn't know anything about liabilities. There are huge success stories with rent by the room. Look it up on youtube from bigger pockets.

what is STR?

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Quote from @Bruce Woodruff:

As I understood your first post, you are a fun-seeker, looking to move towards your goal....adding significant risk like this may/may not help you move faster, but the downside is the risk.

Chasing the almighty dollar as a primary course of action is usually a not-smart move....take it easy, take it slow and chase fun.

I do not believe a landlord would be held liable for something a renter does would they?

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Quote from @Ken M.:

Quote from @Erik Epperson:

If you were smart enough to consider this. And are currently doing it message me.

Also interested in Rent by the room information in General.

You didn't ask this question, perhaps you didn't know to ask, but research tells us there is "no such thing as a "reformed" sex offender.

1 Vote

If you were smart enough to consider this. And are currently doing it message me.

Also interested in Rent by the room information in General.

1 Vote

Quote from @Alecia Loveless:

@Erik Epperson I have 8 properties with 31 units. I work part time at my former W-2. I worked 3rd shift for 15 years and still have the occasional overnight but in my line of work (group home worker) this allows me several hours of free time to work on real estate stuff.

My primary lender is a smallish local bank with about 25 branches. They know I am working part time and evaluated my last loan accordingly.

The Vice President has told me they have some leeway with their underwriting to take my situation into consideration when I apply for loans.

They do ask for my tax return every year so they can fully understand my situation and how I’m handling my finances.

Sometimes it’s all a matter of relationships and networking to be able to accomplish your goals.

I’ve never made more than $50K/year for my W-2 so it is still possible to build a portfolio while you’re doing something you at least like for work but doesn’t pay big bucks.

Absolutely. Really I am not trying to just not work. I just don't want to work at this place any longer, I want to switch careers. But I know having more than one property will be best. Now I am thinking I will get into my first duplex. Then search for new employment or opportunities. I'll have like 30k sitting after a down-payment on a duplex. I just want to try and get into a Maratime focus industry. Then maybe like you said work with a lender or my bank. Iv had and paid of 5 loans with Indiana members credit union, and one mortgage. Last time I was in there they told me I could basically get as much as I wanted.

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Indianapolis, Indiana

Quote from @Jonathan Chan:

Quote from @Erik Epperson:

Hello, new here. Currently waiting on hearing back on my appraisal for my first house I'm getting out of.
I want to invest my profit into 1 or 2 multi family duplexes.

I am curious at what income level based on rental cash flow i would need to still qualify for a loan. I have potential job opportunities else where but will purchase a duplex before thinking of leaving the area. I know once I leave my job I will no longer have that work history and steady income the bank expects to see. So at what point can I use my rent as "steady income?" I ask this because once I have enough for another down payment I will want to scale to more properties.

I am in the Indianapolis Metro area. I can currently find multiple duplexes under 300k. I plan to rent by the room. And possibly convert extra space(dinning room ect) in to bedrooms.
With the high cost of rent in Indianapolis (1000-1500 for a 1 bed room studio) i believe I will have allot of cash flow even with the current interest rates. I personally know several people paying $800-1000 for a single bedroom. And in 2016 I myself paid 750 to stay in a bedroom in a 4 bed house that was full. Based on the area,my rent alone was covering the mortgage, let alone the other 3 tenants. Ever since i lived in that house iv been dreaming of doing the same but it wasn't in the cards yet.

Also if there is any one here who invest in Indianapolis please message me!

make sure you have enough active income to cover expenses. I thought buying 30 doors would be enough to replace my income. The problem is that if you have no other active income, maintenance turns into a burden. Have enough reserves and make sure you have active income. Don't think you're going to chill on the beach everyday with landlord income....unless most of them are paid off.

Ever try room sharing? Rather than renting a place for 1200 you can rent each room for 600. Thus taking a 4 room from. 1200 to 2400.

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Indianapolis, Indiana

Quote from @Marcus Auerbach:

@Erik Epperson you are feeling stuck, because you are mixing two issues: REI and your job. Separate them and then ask which one is more important to you. I can see how passionate you are about your job and sailboats, so It seems like changing your job comes first. And move to the water, so you can figure out a job with sailboats.

Going the real estate route will mean at least 10 years of things you hate. REI is supposed to make your life better. You can make your life instantly better, follow your passion. You will be in a much better place to work on REI once you have a job and a location you love.

Sorry for the reality check: Quitting your job and living of REI in a few years is pretty unrealistic in 2025. Nobody thinks they can invest in the stock market with little money and retire, investing in real estate with little money and retire is equally unrealistic.

It is also called real estate in-vesting, because money flows into real estate not out. Real estate's super power is equity over time, if you want cash flow start or buy a business. Boring businesses usually do best, for example .. you can clean or service boats.

You know this is very legit information. But I do have a bit of a different method. I will be renting to sex offenders at 800-1000 per bedroom. This is a captive demographic. Most landlords will not rent to them. They keep thier jobs, they pay thier rent. And there are thousands of them. I know several who pay 1000 to live in a room for years. Many spend thousands a month to live in hotels. They would kill to rent a room in a decent duplex. I'm looking at duplexes right on bus lines downtown for under 300k. I can grantee I could pull 3k out of one of these houses after expenses.

I do like your idea about going and being where I want to be and starting my own boat cleaning biz or what have you. I absolutely want to do this. But wouldn't it be nice if my room sharing thing worked out? With just 2 of them i can do anything I want. Appoint the appropriate managers, keep money on the side for repairs. Go live in the Mediterranean lol. Again I don't need to net much. If I had an extra 2k coming in I'd be able to survive on a boat any where.

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Indianapolis, Indiana

Quote from @Bruce Woodruff:

Quote from @Erik Epperson:

Quote from @Bruce Woodruff:

If you want to go play with sailboats you should just do that. Properties will drag you down at your age and income level. And get this formly implanted in your brain - everything in RE will cost more, take longer, provide less return, have more maintenance problems, cause more stress.....than you could ever imagine. Especially if you're going to be an OOS owner. The management/maintenance/constant tenant issues will eat up most of your profit.

As @Ken M. explained, it will take a LOT of properties to get where you want to go...unless you use his clever strategies, but those are for experienced investors to manuever IMO.

Based on my novice research and knowledge here. I should be able to pay padsplit 12% to house hack or room share my property. They pretty much take care of everything from what I see. They take 5 bed houses and get 2600 out of them if not more based on markets. In Indianapolis people are paying 800 per room. I personally know some one right now paying $1000! For a single room. I would set up a property manager. And as I said to some one else. I believe the income from just 2 of these and maybe even 1 would give me what I want. All I need is some where around 3k a month to live pretty comfortable on a boat. I plan on trying to get a career in chartering or some other industry in the sailboat world. So it would just be supplemental income. Buuut my point in all this was wondering how I could continue to grow. If I need to stay around a bit to get 2 properties off the ground I would. I also look at the long term, some one else is paying off my mortgage, prices are only rising in the areas I'm looking at. In 20yrs I can sell those houses in lue of having any other retirement in place. Don't have a 401k lol. So if I can have some one else pay off a 200k house I'll be doing alright! Or so that's what I invasion. You are right, my other thoughts are just taking the money I'm getting out of my house and just getting aboat and seeing what happens. I just feel like I'm leaving alot on the table with almost an 800 credit score, great credit history and enough money to buy a very nice duplex. If i walk away from it I'll always wonder what could have been. So I'm doing as much research as possible on bigger pockets, real estate rookie ect. I am currently only looking at duplexes that are turn key, completely renovated. So I assume I won't have alot of maintenance the first couple years and by the time something breaks I'd have money saved for it. I'd keep most of the money the first year or 2 in a seperate account that I won't touch.

I admire your spirit for sure! Re is always a good vehicle to make some $$ but it is never as easy as people think....ask any of us. Is there any way (in addition to RE) that you can fund your love of boats/water? Like something with sailing?

Well I believe that I can find something once I put myself out there. Get some training. Get knowledge. I'm willing to and would love to do boat cleaning as a business. I'm interested in cushion, sail cover, and Bimini making, sail repairing ect. Would love to crew and eventually captain charters ect. But my thoughts. If I can get even just 2k rental income I can go any where and do anything. Maybe not staying at 5 star hotels, but survive while I find another way to make money and live. There are alot of tropical places with lots of boats that even 2k will let you live decent. If i held onto the house 20yrs i could sell and have a fat chunk of cash for a new boat lol. I'm only considering this because I am at a fork. I can either go get a boat and find my way. Or I could take my good credit. Work history, and cash and start real estate. I have been interested in doing house sharing or a duplex for a long time. But at this point I seriously could do it. In Indianapolis even traditional single tenant renting in a duplex will net at least 1k a month. There are many duplexes around 200k here, thats a 1400 cost a month. One side could rent for 1200 easy, 2400 - the mortgage is 1k.

The math is simple on these. Now if it was a 400k duplex, that math wouldnt work. But again im renting by the room for $800. I am also looking at a certain demographic, no one else would consider. I know its a captive audience. I personally know 2 of these people right now paying 800, and 1000 per room. Another guy paying 600 to be in a room with others. Thats 1800 for a bedroom. Its just most traditional investors dont consider this approach. But it works, simple youtube search on bigger pockets will show there are several people making a killing with rooming houses. There is even a company that will do it all for you Padsplit. They have taken 900 a month rentals and turned them into 2500 a month rentals.

Ultimately my ideal goal would be to have 5k coming in after all management fees.

0 Votes

Indianapolis, Indiana

All Forum Posts by: Erik Epperson

Erik Epperson has started 3 posts and replied 27 times.

Post: Room rental to Sex offenders.

Post: Room rental to Sex offenders.

Post: Room rental to Sex offenders.

Post: Room rental to Sex offenders.

Post: Room rental to Sex offenders.

Post: Room rental to Sex offenders.

Post: When can I quit my W2?

Post: When can I quit my W2?

Post: When can I quit my W2?

Post: When can I quit my W2?