House hacking, property management, and mult-family units!

5 Replies

Hi BP!  My name is Jon and I am very new to the real estate investing industry and community.  I have just started listening to the BP podcasts about two weeks ago, but have been listening for about 5 hours a day on average.  I have a friend that flips and rents houses here in Omaha that turned me onto BP.

I actually kind of backed into my first deal, and didn't even realize it was a deal initially, but it uncovered a passion for real estate that I never knew existed.  I guess I kind of always knew I would enjoy it, but I just didn't realize house feasible it actually was! I bought a duplex inquit Ralston, NE that I am set to close on at the end of this week and couldn't be more excited!  I already have a renter lined up that will be paying me $875/mo, and my mortgage, taxes and insurance come out to $1180.  I plan on living in it for a year or two and then house hacking another property. I would like to purchase another 2-4 units this year and double that number for the next five years.

I am also in the process of starting my own property management company and am looking for any and all advice that I can get in that regard.

I am employed full time in a traveling sales role that I would like to be able to quit as soon as possible in order to spend more time at home and have the freedom to pursue my goals in real estate! I am a hell of a salesman, extremely motivated and self-driven, innovative and not afraid to take risks.  I think I have what it wakes to be a successful real estate investor, and I couldn't be happier that I've found this community to exchange ideas with and be able to turn to for support.

Good for you, you are off to a good start! I started the same way and could give you endless, unsolicited advice. Feel free to PM me with specific questions, but in order to keep this brief and simple, proper, thorough screening is the number one thing you can do to ensure that your investment is as passive as possible and protected from damage and neglect. How did you find this tenant that you've lined up? Did you run a credit and background check? Have you defined your tenant criteria? Best of luck!

Originally posted by @Jonathan Stastny :

Hi BP!  My name is Jon and I am very new to the real estate investing industry and community.  I have just started listening to the BP podcasts about two weeks ago, but have been listening for about 5 hours a day on average.  I have a friend that flips and rents houses here in Omaha that turned me onto BP.

I actually kind of backed into my first deal, and didn't even realize it was a deal initially, but it uncovered a passion for real estate that I never knew existed.  I guess I kind of always knew I would enjoy it, but I just didn't realize house feasible it actually was! I bought a duplex inquit Ralston, NE that I am set to close on at the end of this week and couldn't be more excited!  I already have a renter lined up that will be paying me $875/mo, and my mortgage, taxes and insurance come out to $1180.  I plan on living in it for a year or two and then house hacking another property. I would like to purchase another 2-4 units this year and double that number for the next five years.

I am also in the process of starting my own property management company and am looking for any and all advice that I can get in that regard.

I am employed full time in a traveling sales role that I would like to be able to quit as soon as possible in order to spend more time at home and have the freedom to pursue my goals in real estate! I am a hell of a salesman, extremely motivated and self-driven, innovative and not afraid to take risks.  I think I have what it wakes to be a successful real estate investor, and I couldn't be happier that I've found this community to exchange ideas with and be able to turn to for support.

 Congrats! 

Question though, why do you want to start a PM business? When I first started investing, I too wanted my own PM business, something about the quality control. In a few short yrs I’ve realized I just want to take advantage of the passive income and wish I had the resources I wasted on generating the PM side. I wasn’t as clear on my goals then as I am now. Just curious if I can save you some headache by zeroing in on your goals. 

Also, I have a spreadsheet on my site that will help you with keeping up with the financial aspects of your duplex. It’s super simple for guys just starting out and helps with tax prep. 

Originally posted by @Jay Helms :
Originally posted by @Jonathan Stastny:

Hi BP!  My name is Jon and I am very new to the real estate investing industry and community.  I have just started listening to the BP podcasts about two weeks ago, but have been listening for about 5 hours a day on average.  I have a friend that flips and rents houses here in Omaha that turned me onto BP.

I actually kind of backed into my first deal, and didn't even realize it was a deal initially, but it uncovered a passion for real estate that I never knew existed.  I guess I kind of always knew I would enjoy it, but I just didn't realize house feasible it actually was! I bought a duplex inquit Ralston, NE that I am set to close on at the end of this week and couldn't be more excited!  I already have a renter lined up that will be paying me $875/mo, and my mortgage, taxes and insurance come out to $1180.  I plan on living in it for a year or two and then house hacking another property. I would like to purchase another 2-4 units this year and double that number for the next five years.

I am also in the process of starting my own property management company and am looking for any and all advice that I can get in that regard.

I am employed full time in a traveling sales role that I would like to be able to quit as soon as possible in order to spend more time at home and have the freedom to pursue my goals in real estate! I am a hell of a salesman, extremely motivated and self-driven, innovative and not afraid to take risks.  I think I have what it wakes to be a successful real estate investor, and I couldn't be happier that I've found this community to exchange ideas with and be able to turn to for support.

 Congrats! 

Question though, why do you want to start a PM business? When I first started investing, I too wanted my own PM business, something about the quality control. In a few short yrs I’ve realized I just want to take advantage of the passive income and wish I had the resources I wasted on generating the PM side. I wasn’t as clear on my goals then as I am now. Just curious if I can save you some headache by zeroing in on your goals. 

Also, I have a spreadsheet on my site that will help you with keeping up with the financial aspects of your duplex. It’s super simple for guys just starting out and helps with tax prep. 

Thank you, Jay!

I have a few reasons why I would like to start a PM business.  My property acquisition is going to be more of a slow burn, and figured while we are managing our own properties it would be beneficial to have PM as a revenue stream as well.  I also thought that it would give me an edge on potential deals if any of our clients decided that they wanted to sell any of their properties. My end goal would be for me to handle my investments, and my girlfriend to take the reigns of the PM business.  I am currently in the market research phase of my writing my business plan. I see it as a low overhead revenue stream, but I could be wrong. I am a big fan of not wasting time or money if it's not worth it.

I would love to see the spreadsheet you have. I am open to, and grateful for, any and all advice.

Originally posted by @Corby Goade :

Good for you, you are off to a good start! I started the same way and could give you endless, unsolicited advice. Feel free to PM me with specific questions, but in order to keep this brief and simple, proper, thorough screening is the number one thing you can do to ensure that your investment is as passive as possible and protected from damage and neglect. How did you find this tenant that you've lined up? Did you run a credit and background check? Have you defined your tenant criteria? Best of luck!

Corby,

Thank you, and I am open to any advice that you think would be pertinent and helpful!  Consider it solicited.

The tenant that I have lined up is actually a friend of mine that is moving here from out of state for a job.  I have known him for a few years and am confident that he will be a great tenant.  I have been very clear that I am treating this as a business transaction and am requiring a deposit and a 12 month lease.

I do however have tenant criteria in mind for future tenants.  30% max rent to income ratio, 650 minimum credit score and no evictions will be what I use for my standard criteria.

Again, any and all advice is greatly appreciated.

Welcome to BP Jonathan!

It's great you're still treating your future tenant (and current friend) as a regular tenant with a deposit and lease. I used to rent out my hose to a friend and it was very helpful to be very upfront about everything.

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