I bought a house in 2022. It's 10 mins away from LSU so I've been house hacking to college students. But now I'm thinking of renting the whole house and getting a cheap apartment to save even more money. Should I?
I found a couple that wants to rent the 2b2b home for $1,500 plus $50 a month for two dogs. But that will only give me $150 cash flow towards my new rental. I would rather wait and find someone to rent for $1,700 instead. Would it be wrong to wait? What would I tell them? That the rent increased? Like how do I do that?
At $1,700 a month, I would profit $300 which would go towards my new rent which is $475 a month.
What is the $1,700/month based on, and which neighborhood is this? $1,500-$1,600 is about the going rate for a 2/2 in most average areas of BR, but I can see where some neighborhoods would get more.
Another thing to think about - if the property is sitting vacant right now and you have ready and willing (and qualified) tenants, then the opportunity cost of waiting an extra month or two is $1,550/month. If it takes you two months two find a tenant willing to pay $1,700, then you'll still basically break even in the long run - the net to you is the same.
If you think you can find a higher quality tenant, then that is a different conversation entirely.
As far as what to tell them, you simply say that you're listing it for $1,700/month and are not willing to lower the rate. If you're advertising at $1,500/month, then that's a different story.
What is the $1,700/month based on, and which neighborhood is this? $1,500-$1,600 is about the going rate for a 2/2 in most average areas of BR, but I can see where some neighborhoods would get more.
Another thing to think about - if the property is sitting vacant right now and you have ready and willing (and qualified) tenants, then the opportunity cost of waiting an extra month or two is $1,550/month. If it takes you two months two find a tenant willing to pay $1,700, then you'll still basically break even in the long run - the net to you is the same.
If you think you can find a higher quality tenant, then that is a different conversation entirely.
As far as what to tell them, you simply say that you're listing it for $1,700/month and are not willing to lower the rate. If you're advertising at $1,500/month, then that's a different story.
i think this is a decision only you can make. im in a similar boat (house hacking my primary) and considering renting the whole thing out to get a solo home for myself. certainly a lot of appeal in that, given how much work goes into the house hack. but whether or not the numbers on cash flow align is up to you.
personally i dont think $150 (seems like about 12%?) in cash flow would cut it for me. i'd want enough to cover the mtg, but also R&M and a little for vacancy. if i can't do that plus have a little actual "cash flow" left over.... i'm still here :) if that's any indication.
Thank you for replying. It's in the sharlo townhome area. I think $1,700 might be excessive but I've rented out a room for $800 beside, so that x2 should've been my starting point at least I think.
I have a roommate in here currently. I'm house hacking rn. But wanting to do this transition in June/July/August for the 2025 Fall Semester.
I did advertise it as $1,500 but when I got the reactions about it being such a good price, I updated my posts to say $1,700. So for new ppl, they'll see $1,700 but for this couple I advertised as $1,500.
Yeah, that's what I'm thinking. What's the point for that little lol. That covers the storage unit I'll need to keep all my stuff in!
Would it be okay to tell them the rent went up? My mom says to ask if they're almost done with the application and let them know that another couple inquired and offered $1,700 and see if they want to match that price. The issue is that if they say no, and no one else bites, I've shot myself in the foot.
Thank you for replying. It's in the sharlo townhome area. I think $1,700 might be excessive but I've rented out a room for $800 beside, so that x2 should've been my starting point at least I think.
I have a roommate in here currently. I'm house hacking rn. But wanting to do this transition in June/July/August for the 2025 Fall Semester.
I did advertise it as $1,500 but when I got the reactions about it being such a good price, I updated my posts to say $1,700. So for new ppl, they'll see $1,700 but for this couple I advertised as $1,500.
If that's Brightside/Alvin Dark area (going off of memory), I think $1,700 for a 2/2 might be a stretch. I'd expect those rates in the midcity/southdowns area, but not tigerland/brightside.
Ahh. Gotcha. I'm asking for too much. Okay I'll keep that in mind. I told the couple that I got an offer for $1,700 but wanted to ultimately rent to them but need the income. They said they'll discuss and get back to me tonight. If they say they can't swing it, should I just go ahead and rent to them at $1,550?