All Forum Posts by: Brandon West

Seems like a fair deal. As stated before I would be prepared for some cap ex in the future. Your numbers seem sound and if your buying it as an investment they will include 75% of the future property's rents as income to help qualify. Not sure about the HELOC, I am currently in the same position as you with my first property being a duplex with almost identical numbers. Have yet to have it appraised though.

The price seems a little steep for being a 1/1 2/2. Also, your potential rents seem optimistic, however I am not familiar with your area so you would know best. Just be conservative with your numbers as you probably know. 

Good luck seems like a solid investment for the long term.

Not sure exactly what your asking. Is it that your wondering how much a rental property should be worth? I have found especially in my market that most SFR and Duplex's on the MLS seem to sit at a price that if financed at current market rates with a traditional 30 year 20% down will sit at a price that once financed will rent at current market rents will just barley cover the mortgage. This is one reason to look for properties that are not on MLS and be pre approved for financing before you begin looking so you can pull the trigger quick.

Brandon West

Hey there and welcome to BP,

My theory is that people are always afraid of what they don not understand. There is no substitution for knowledge and experience. Start filling up both bags and hope one does not run out before the other. I have faced many similar remarks from friends and family, but you must look at what they have done in real estate and in their own lives. If a succseful investor is telling you that your idea stinks becasue they have done the same thing and failed several times then yes maybe it does. Otherwise, trust the numbers and your own research. Being successful takes risk, if it was easy then everyone would do it. Good luck and keep your head up.

Brandon West

Hey there BP,

Im pretty new to the real estate game and am looking for advice. I currently own a Duplex that cash flows 400 per month and am in contract on a SFR that should do about the same. I am a commercial Pilot for an airline that is based on the east coast and spend a lot of time in the ohio and northern Kentucky area.

I currently have an idea to make a little cash on the side doing a house hack and I thought i would share it with the group. I found a landlord who is ok with the idea so well get that out of the way upfront. Being a pilot I am intimately familiar with the need for housing that is available to commuters (people living in another state and only need a place to stay a few nights a month) as a crash pad. These crash pads usually have multiple beds per room and charge by the month. It works out because everyone is on very different schedules and is usually not in the house at the same time. 

The numbers

Rent+Utilities(4 bedroom house) -1250/month

Total Beds possible- 10 @ 250/month Total 2500

Total cost to furnish house- 5500

Time to recoup investment - 2.6 months

Total ROI 300%

Systems in Place to Manage

Keyless lock to remotely change codes on a month to month basis

Invoice via Paypal and venmo

cleaning service once a month

local handyman to take care of small repairs otherwise the landlord would be responsible

I have been debating on buying my own place to do this however I thought I would try it out by renting for the first year. I am marketing to my own company via internal company websites and have had good responses. I am debating on whether to sign leases with the people or go without a lease (other crash pads I have seen do not require a lease, however I am definitely going to do background checks). Also wondering how the tax situation would work and if I would need to report the income or not. 

Any advice would be welcome.

Thanks