New to Real Estate · Member since 2020 · 15 posts · 5 votes
Hello all,
I am a new REI investor in the Greater Atlanta area. My cousin and I are working together to invest in RE. I was initially looking for multifamily deals but the deals have been slim to none so I have expanded my scope to single family residential househacking.
Can anyone please provide any best practices? What to look for to qualify a SF as a good house hack? How do I figure out fair rent price when it comes to renting out rooms (I have used BP insights before to calculate rent for properties not rooms)? Looking to have an accurate as possible rent in order to calculate if the deal is good.
I have been seeing various different types of SFs ranging from ones with 4+ rooms to others with finished basement, others with additional dwelling units and some have garages. I am definitely super excited and pumped to get into my first property!
Can't wait to hear some of your experience with Single family house hacks! :)
Chicago, IL · Member since 2014 · 5 posts · 9 votes
5y
Hi! I have been house hacking a 3/2 in Decatur and it has worked out great! I bought the house 4 years ago with the plan to house hack.
That was my entry into real estate investing and I didn’t know if there was a correct way to figure out rent. I looked at my total expenses, looked at what other room rentals were going for on Craigslist and figured out rent per room based on that. I was first charging $550 per room, which included utilities, and found out that was too little. It was covering my mortgage and most of my utilities but I could have charged more. When my first roommates moved out, I raised the rent.
I have now moved for work and rented out my room and it is cash flowing very well.
I wish you and your cousin the best of luck! Feel free to message me if you have any questions.
Real Estate Agent · Woodstock, GA · Member since 2018 · 253 posts · 255 votes
5y
I have helped many clients and friends with house hacks. Actually just helped a good friend purchase his 3rd house hack property. With anything Real Estate related location matters. It has to be in a desirable area where renting by the room is common, typically younger single people but you can also go to areas with more families if done properly.
I helped a client last year buy a property in the suburbs.The basement was already plumbed for a sink so he just installed a stove and finished it out to make it an in-law suite. He moved into the basement and then rented out the whole top half of the house for $1,500 a month which covered his mortgage.
Rent pricing is going to vary based on how you do it. Typically you can yield a higher rent if you rent by the room but you do have to factor in paying for utilities etc.
Chicago, IL · Member since 2014 · 5 posts · 9 votes
5y
Hi! I have been house hacking a 3/2 in Decatur and it has worked out great! I bought the house 4 years ago with the plan to house hack.
That was my entry into real estate investing and I didn’t know if there was a correct way to figure out rent. I looked at my total expenses, looked at what other room rentals were going for on Craigslist and figured out rent per room based on that. I was first charging $550 per room, which included utilities, and found out that was too little. It was covering my mortgage and most of my utilities but I could have charged more. When my first roommates moved out, I raised the rent.
I have now moved for work and rented out my room and it is cash flowing very well.
I wish you and your cousin the best of luck! Feel free to message me if you have any questions.
Investor · Cincinnati, OH · Member since 2018 · 304 posts · 185 votes
5y
Check out the market for room prices. In my area I look at FB and Craigslist rooms, then scale the price based on my rooms amenities, size, and my house location. Make sure your room price is not too close to studio apartments available as most would rather their own studio than sharing a house.
Rental Property Investor · Atlanta, GA · Member since 2020 · 12 posts · 5 votes
5y
I'm also beginning my HH journey in Atlanta, following this exact plan. I'm looking in the Southern DeKalb County area (south and East of Decatur/ELT/Scottdale) as well as SFH along the new Westside Beltline trail, near the new Reservoir Park.
Specifically I'm looking for SFHs with finished basements and 2/3 bedrooms upstairs to rent by room or to a family. Which areas are you looking into?