Brand New Investor - House Hacking With Friends

[Lane Sanders]

I am closing on a new-build (3 bed, 2.5 bath) June 6th in Bulverde TX (North San Antonio). 385k home at 3.99%, making my monthly mortgage payment ~$2500. This will be my first ever home.

My plan is to rent out 2 rooms to friends at $1000/pp monthly for 1 year minimum.

Should I type up a lease agreement? Should I increase the monthly rent? Should I download an app to collect payment?

I would greatly appreciate any advice or recommendations on how to best navigate this new endeavor.

[JooYung Choi]

Hey Lane,

Congratulations on your first property. Highly recommend a lease, even if they are friends. You can use property management software like Innago. There's plenty out there, just find you are comfortable with. Venmo / Zelle is fine too. Be sure to open bank accounts (savings to hold the security deposit, checking for all income / expenses related to the home). Your rent should be relative to what 1 bedroom rentals are going for in your area. Just price it under that since it's a shared space. 

How are you getting a 3.99% interest rate?