All Forum Posts by: Trey DeJohn

Thanks @Marco G..

Maybe a better question would be, what’s illegal in these respects?

Hi BP,

Admittedly, I’m new to this. I purchased my first property and moved in at the beginning of May. It’s a single family 4 bed home with the intent to rent out the additional rooms.

My girlfriend and I will be occupying the master, but we’re curious on what “house rules” you’re able to put in place and what’s illegal?

Ive searched landlordology and BP for state specific laws, but it seems like owner occupancy is a bit of a different beast.

Topics were curious about:

1) shoes in the house (for instance, could we say prefer to take your shoes off when walking in?)

2) keeping the common area relatively clean

3) etc.

Any help would be greatly appreciated!

Trey

@Kevin Dean Kevin, thank you for your input my friend. A ton I can say here, but yes I would like to connect. Always nice to meet forward thinking individuals like ourselves. Connect with me and shoot me a private message.

@Aaron Gordy I like your thought process Aaron and that was my thinking when I originally started evaluating places, but after looking at the numbers it will consistently be negative cash flow even on the East Side (knowing you’re from Austin). Unless it’s an outlandish slash of the asking price.

Also to clarify, I’m not living in a duplex right now. I’m in an apartment. I was thinking about purchasing a duplex and living in 1 side.

Happy to share my spreadsheet so you can see my numbers.

@Ryan Kelly

Thanks Ryan! Private messaged.

@Trey DeJohn

Update. Not sure how to attach a photo throughout the mobile app.

• List property cost is 310k

• Negative Cash Flow

• -45% CoCROI

Where it gets interesting is if they took

• 175k for the property

• $107 per month cash flow

• 10.5% CoCROI

Also my math factors in expenses to be:

Tax

Insurance

PMI

HOA

Repairs

Vacancy

CapEx

Prop Manager

Mortgage

Hi BP Forums,

Thanks for coming to help me out! Before I dive into my problem a little background about myself.

• I am 24 years old

• Started working a corporate job in Austin, TX 2 years ago

• Graduated school with student loans and paid them off within 12 months

• Saved enough money in the next 12 months to invest in my first property

• April is the end of my apartment lease and I’m looking to have the first property secured before then

• At first I started looking at Multi-Families in ATX to “house hack” (potentially live in 1 half & rent the other, if it’s a duplex)

The challenge I’m running into and I’m hoping someone can provide some guidance is every time that I run the numbers, it seems like it’s not feasible. (Please see attached photo)

First assumption is that it’s because it’s Austin Texas and the market has been exploding for the last 10 years with no signs of slowing down.

Has anyone experienced anything like this? How did you over come it?

Did you give up investing in that market and invest elsewhere?

Any input helps as I’m a rookie and the only knowledge I have is listening to the BP podcast.

Thank you everyone.

Trey