All Forum Posts by: Sidney Reed

I was a landlord there for about 6 years (bought my first house hack at age 22!)  There’s a few things I can give tips on from my experience:

- The average income is lower, so it was hard to get in your typical renters who want to do a long term lease; nearly every one of my renters paid late despite credit checks and employment verification. Not an issue if you are firm on late fees. Though, I did have some renters pack up and run away overnight, so be prepared to be friends with the local police to issue warrants. It sounds stressful but it’s not too bad. 

- There’s nature to contend with (mold, termites, hurricanes, flooding, sun damage). I had a $165,000 new home built because it was cheaper with a 10-yr warranty rather than deal with a house flip from 1890. Never skip the termite inspection on anything older than 6 months.

- You will need to be very careful where you buy. I house hacked as a college student and when I’d drive to class, one wrong turn could take me from a neighborhood of plantation mansions to a very bad situation. Always double check with the locals on what street you’re buying on.

- It’s a college town. My tactic was to rent to college students each year. Very high turnover but much better chances of them actually paying rent.
- Airbnb strategy is very difficult. There’s mostly retirees and students living in the city, and certain seasons are better to visit. Airbnb did not work well for my fellow investors due to Savannah’s hotel laws and from the tourist seasons in general. 

- It’s a gorgeous city and I’m looking at investing again soon, perhaps in multifamily. As an alumni of the art school there, I can say it’s only going to grow in population but probably not in equity. If you can handle the seasonal flow and not expect long term tenants, and you have a solid property manager (mine was a superstar), then it’s a good place to invest. 

Let me know if you have more questions. I’m happy to help!

I've seen a few posts on this topic but none with exact answers. My friend is interested in real estate investing and can bring her VA loan to the table, while I bring my investing/landlord knowledge. We plan on house hacking a multi-unit or large single-family using the VA loan. I am not able to put my name on that loan (only spouses can), so what is the proper way to establish our partnership/LLC so we are equal partners? We will split all finances, costs, profits, etc. and want to pay the taxes the right way. (If it makes a difference for access to resources, we're in Denver, CO.)

Excellent advice. Thank you to both. 

I had noticed in the past while house hacking that if I didn’t disclose I was the landlord, everyone was shockingly well behaved. When I switched over to telling my tenants I WAS the live-in landlord, chaos erupted with fights, late-payments,  and a lot of mistreatment of the property with a “well the landlord is right here and can fix it for me” mentality. I didn’t know if the later could be avoided for convenience purposes. 

Hello! I have recently purchased my first rental property here in Denver, CO and will be househacking while I add value to the place over the first year. I previously househacked in Savannah, GA where the landlord/tenant rules were more relaxed. I have two questions about Colorado renting to make sure I’m doing it right.

1) Do I need to disclose to my "roommates" that I am the landlord and owner? Or can they simply pay me, assuming I am then paying the "landlord". Should I get an LLC for this purpose?

2) How do you recommend all roommatesshare utilities? In Colorado is the landlord responsible for certain ones (like trash pickup, sewer, or water)?

Thanks in advance!