All Forum Posts by: Account Closed

Hey everyone! 

For the past 2 years, I have been doing short-term rentals in Kansas City, Mo. Like most businesses, it started off pretty slow. Up until late December of 2022, we are now up to 8 arbitraged units. My goal for 2022 is to arbitrage 10 more units and hire my own property manager to do most of the guest communications and handle the day-to-day operations as I do that myself while still working a full-time job. 

I would love to get into BRRRRnBs. Another one of my goals is to do two BRRRRnBs this year for a total of 20 units. However, two of my units are underperforming and have been too much of a  headache with maintenance issues and poor building management. 

I am currently reading David Greenes, BRRRR book. It has so much great content. I'd love to connect and chat with others doing STRs and BRRRRs!

Just trying to learn. No need for the negativity. 

I am under contract to close with a HUD property. My understanding is that this property has to be my primary residence. I do not particularly want to live there though. My question is how soon can I lease this property and/ or can I sublease a "bedroom" for lets say what you would typically pay to lease a home? Just trying to figure out a legal way to make this a rental property without me having to live there. Thanks!

Thank you for your feedback!

I am needing some feedback here.

My scenario:

I am looking to purchase a 3/1 HUD at 3% down. The purchase price is $47,000 and it needs some cosmetic work and plumbing(maybe close to $20k). I plan to house hack with renting out 2 of the bedrooms at, lets say $500 a room(possibly the 3rd room as well and ill sleep in basement. The comps in the area are going for $82k.

My questions:

Is a cash out refi my best option? (In order to buy more rental props)

How soon will I be able to refi?

Is this a good scenario?

Any recommendations?

Glad I read this. I am interested in doing the same technique! Thanks for the share

@Geordy Rostad that is definitely good to know. I will add that one to my list!

So far I have read The UBG, Rich Dad Poord Dad, and Rich Dads Guide to Investing. Tomorrow I am starting ABSs of REI, and I have just ordered The 4 Hour Work Week. I never enjoyed reading until I found out that if it is something I love to learn about then I can't put the book down. What other recommendations does everyone have? What's your favorite book and why?

And by rent it out I mean I will be living there and renting out the additional bedrooms. 

I should have been more specif.. I am looking into purchasing buy and holds/ fix and holds(Cash Flow!!). I am not necessarily targeting HUD homes but this one just happened to come up and from what I can tell, it is an absolute steal! But, then again I am still fairly new to this, so I am not getting my hopes up. This HUD property was listed on the market on the 21st, giving me 10 days to put in the offer/ bid. My plan for this HUD home is to use my FHA loan to purchase and pay the down payment out of pocket. It is listed for 65K but thinking of bidding way lower, possibly 55K mark. It is a 3/1.5 with a basement possibly adding an additional bedroom. My business partner and I will use a private lender to fix it up(mostly cosmetic from what I can see) and we will then rent it out.

Thanks for all the feedback! :)