All Forum Posts by: Stanley Ezeadi

@Bruce C. These are medium term roommates or tenants. I write my leases for 6 months a majority of them have been there for a little over a year.

My second property is a repeat of the first and much closer to my new day job.

I have looked into Multi-family, I just haven't found a good deal...yet. 

Hey guys, it feels like it was just yesterday that I made my newbie intro on BP. Last month I gave the keys (keypad code) away to the Master Bedroom of my first House Hack and preparing for my next move which closed a few weeks ago. Here are the numbers! (Note: I have owned this property for 1 year now. This one closed Jan. 14 2020. )

Purchase Price: 189K

Financing: 3% down Conventional, my cash to close came out to $7435.12

Renovation: 

Re-pipe home +water heater- $4800

Paint/Wall patching: $1200

Appliances & Misc: $1000

This property had OK bones but was pretty dated. I did some DIY painting and a friend helped with selecting some tasteful decor which has gotten some great compliments. This property is a 4 bedroom 2.5 bathroom home in Brays Oaks near Meyerland. I rent this property by the room and it does pretty well. I rent 3 of the bedrooms for $650 and the Master for $700. 

Estimated Value of home today: 245k

Rents Received: $2650

PITI: 1450

Utilities + Lawn Care+ Internet: 280

Monthly Cleaner: 40

Cashflow: $880

Note: I have a 10K reserve fund for this property. 

Also I was able to rent my spare bedrooms before my mortgage was ever due so I have never actually paid the mortgage out of pocket. 

I would ask your realtor if you are using one. They will typically have a handful that they usually recommend. If not I’ve used “A-Action”for my last 2 transactions.

Hey Landon, 

700k seems like quite a big step for a first house hack/investment. Museum district has probably the highest demand no doubt about it and seeing a 2% appreciation sounds pretty average. But can you cover the mortgage without roommates? Can it atleast break even/cash flow as a regular rental? 
If so, and this is where you want to live then pull the trigger. But I’m with @Holly Brown pick an area that is gentrifying inside 610. Maybe 300-400k instead. Holly where’s your house hack?

Welcome Wesley! Best of luck in all your endeavors this year! 

Hey Jamal,

I was in your shoes about a year ago. If you're currently renting I would definitely make the first purchase a house hack which will in time grow your cash reserves. Wouldn't it be nice to look back a year from now and have a 60k war chest for your real estate endeavors? I can definitely share my experience and where I am with you.

What area are you looking to buy in? Your idea seems solid but depending on where the home is located will determine whether it will actually work. I suggest living in the house and renting out the rooms and the garage apartment. If you live in the master you'll have the your own private bath and you would just have to share common spaces. 

I currently do this to my property and although it felt weird at first. It pays well and if you and your tenants are working individuals you guys will hardly see each other. I have a tenant who I have not seen in 3 weeks. But he always pays rent early a week ahead. Screen well and it will pay off.

So if you're strategy is not working. Take a step back and see what others are doing in the area. I live in Houston, TX so if you provide a zip code I may be able to steer you in the right direction. I agree that maybe a family would not be comfortable with living with someone in the garage. Why don't you try renting by the room instead. I do this with my House Hack and I profit by doing it.

I would move into the house and rent the rooms out instead. And then also rent out the garage apartment. Shoot me a message if you'd like and we can get more specific based on your area.

@Alex Petkas

I haven’t met anyone yet. By Westside I’m assuming you are referring to the energy corridor? House hacking will

definitely work in that area. House hacking will work on any side of town but $$ per room will vary.

@Rehan Noorani

And on my last project I got about 3-4 bids from some plumbers/ Handymen/landscapers before giving the job to someone. Don’t just pick the cheapest bid get someone who will do quality work and has a good track record. Ask other investors who they’ve used rather than using Yelp/ Google reviews, they can be faked.

I was getting a bid for a repipe job at my property and after doing some research I found that one plumbing company that gave me a quote had 6 yelp accounts and was writing their own reviews to offset there poor reviews. I dodged that one.