Norcross, GA · Member since 2017 · 10 posts · 0 votes
I'm planning on purchasing second SFH property and renting how the rooms instead of the whole property. I'm 26 Y.O. , me and my wife live downstairs and the tenants live upstairs. Their rent actually covering my mortgage plus some profit. I purchase my home last year 2016 in Oct and wanting to know if purchasing another SFH to rent out the rooms a good idea. I plan to buy in Oct-December. I plan to have 5-10 rooms. Did anyone doing similar to what I'm planning to do successful? Is it possible to purchase as a primary residence instead of an investment property to get lower interest rate? Can I down lesser than 20 percent? Thanks all the info will be great!
Norcross, GA · Member since 2017 · 10 posts · 0 votes
9y
thanks, have you have anyone done this? If so were they successful? One of my friend's dad is doing this and he rented 450 for 5 rooms and only expense since he paid off the house already is untility, ranging up to 300. His son overwatch the house.
Investor · Chandler, AZ · Member since 2015 · 409 posts · 214 votes
9y
Chris
that's awesome
great job
in the area by the college they are getting anywhere from 560-625 a room
of course there are house rules that have to be followed and it looks like a very good contract to the renters
one guy that had a room rental house made enough money to purchase a property in the river area and is renting his house out at 360 a night as a abb, talk about a gig, that place is up the street from my place and it is full every night- give or take 1-3 nights a week
I live right on the river and that is what my wife and I plan to do with this one it will rent for about 425 a night plus they have direct access to the river for fishing and kayaking
Real Estate Broker · Tacoma, WA · Member since 2016 · 545 posts · 252 votes
9y
Hey Chris . I tried tag you but my phones being weird, hopefully you get this okay! Generally speaking the bank will not give you a low down payment loan on a secondary residence , however as Chris Purcell said, of you move into it it will be a different story and you will have the potential of getting a much better deal. Now, if you bought your current house with a low down payment loan such as FHA you're going to need to look into the legalities there, because the Fha particular requires 1 year in the home before you can move and you can only have one at a time. That being said I moved into my current house with 3.5 down on a standard, non gov backed loan had had none of the time restrictions . There sre definitey options... if youre going to rent out 10 rooms to people you don't know make sure you know head to toe the cost it will take to run the house monthly and make sure you're putting good people in there cause the last thing you wanna do is be fielding phone calls about how someone stole someone else's toothpaste. Best of luck.
Norcross, GA · Member since 2017 · 10 posts · 0 votes
9y
Thanks Jameson, I have a conventional loan at 3.5 % by a awesome mortgage broker I found. Do you think I should get another mortgage broker just in case as a assurance if something doesn't go well with one of the loan so it won't tie up with the other. Is 15 to 10 feasible so some mortgage brokers for down? And I'm really charge up in trying to make this a successful career later on. Ps I down 5 %
in the area by the college they are getting anywhere from 560-625 a room
of course there are house rules that have to be followed and it looks like a very good contract to the renters
one guy that had a room rental house made enough money to purchase a property in the river area and is renting his house out at 360 a night as a abb, talk about a gig, that place is up the street from my place and it is full every night- give or take 1-3 nights a week
I live right on the river and that is what my wife and I plan to do with this one it will rent for about 425 a night plus they have direct access to the river for fishing and kayaking
Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
9y
zoning is what's important. Some cities have requirements that no more than a certain number of people can share a house that are not related if it is not owner occupied. So a "boarding house" might not be within the limits of rental standard in some cities, if it's not owner occupied. And neighbors will complain with to many cars, more foot traffic, so you will get unwanted attention.
zoning is what's important. Some cities have requirements that no more than a certain number of people can share a house that are not related if it is not owner occupied. So a "boarding house" might not be within the limits of rental standard in some cities, if it's not owner occupied. And neighbors will complain with to many cars, more foot traffic, so you will get unwanted attention.
zoning is what's important. Some cities have requirements that no more than a certain number of people can share a house that are not related if it is not owner occupied. So a "boarding house" might not be within the limits of rental standard in some cities, if it's not owner occupied. And neighbors will complain with to many cars, more foot traffic, so you will get unwanted attention.
Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
9y
I'm planning on purchasing second SFH property and renting how the rooms instead of the whole property. I'm 26 Y.O. , me and my wife live downstairs and the tenants live upstairs. Their rent actually covering my mortgage plus some profit.
>>YES, that's ok because you are resident
I purchase my home last year 2016 in Oct and wanting to know if purchasing another SFH to rent out the rooms a good idea.
>> THAT'S A NO-NO. Without YOU resident, you would be operating a rooming house business and would need to comply with those regulations
Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes
9y
I have a rental down the street where the owner rented to unrelated boarders. I haven't checked the local regulations, apparently neighbors complained about it.
It started when they started to park the extra cars in front of my tenant's house. It's not illegal, but people don't do it. So my tenant told the owner of the house, I don't care how many boarders you have, just don't park your cars here, and I won't report you.
Apparently that scared them away. I guess the trick is not to get into trouble with the neighbors.