All Forum Posts by: Tom Kaser

@John Edwards

Good points. What about getting a partner who has a W2 job and good credit? Get it ALL in writing though and have an attorney review the Agreement. Your W2 partner could be a passive partner, get a small portion of the deal. Sounds like you’ve done most of the work.

Don’t walk away from a profit, that sounds like could be just around the corner. Don’t give up, crap happens at anytime.

Find another W2 job too.

@James Hamling

Very good point James. The better the appliances, the better the tenants. I had a dishwasher go out on me a year ago, white color. I replaced it with a nicer stainless steel dishwasher with a silverware rack on top. Tenants appreciated it. Spent a little more but it is better for all parties involved.

I can see how investors would disagree, but overall concept: you get what you pay for. 😎👊🏽

@Chang Pan

Can you do all one loan with initial hard money loan? Like a 90 percent is Where are you put 10% down on the purchase and 10% down on the fix up costs and let’s say the fix up costs are $40,000 and you end up only spending $20,000.

Yet it is all one loan.

You refi to conventional rate and term loan at lower rate, keep new loan balance as close as possible to initial loan balance, and wallah. You could actually get the 20k back from hard money lender that you ended up not spending on fix up. It’s a little dicey but it can be done.

Or if you spend all the 40k on fix up, that’s ok, all the more value is put into the subject property.

@Brian Garrett

@Karl B.

That’s right Karl. People just need to go for it! Take action, stumble, fail.... and you learn more than what college will teach you. Buy assets, smartly of course. 😎👊🏽

I was in this predicament last fall. If I did cash out refi, I’d pay thousands in closing costs and I’d have to start over with new mortgage on the rental, paying mostly interest.

So I took a HELOC on the rental, pay interest only, only paid like ~$300 to get the home equity loan on the rental. Used the new capital on a BRRRR and created $38,000 in equity. Cash flow is low but house is in a highly desired area and rent will go up over time, as well as property value.

If all the numbers work, then consider proceeding but be wise. 👊🏽

Latin Proverb: Nihil Sine Labore.

English: Nothing Without Effort

Now let’s all go make the effort! 😎👊🏽🔥

@Tom Kaser

I’ve heard of landlords succeeding with this model. This of course would only be done if the current tenants would be comfortable doing it and be first to choose the tenant. I’d have to approve with my policies too and the room renter would be on the lease.

I’d like to hear other replies. Thanks.

Anyone renting per room with success? Do they stay long? I have a 3 bed, 2 bath house in Denver Metro area I rent to a couple (no kids) for $2,000 per month. I could propose to them I rent the downstairs room for $800, and the couple pay $800 each, $1600 combined. Their rent would go down $400 and my cash flow increases $400. A potential win-win situation, provided everyone gets along.

I’ve never done a rent per room model but I see more profits. Any thoughts?

@Mike Dymski

Very true