All Forum Posts by: Daniel Haberkost

@Serena Tillman keep analyzing properties, networking and learning how to find leads and you will find a cash flowing deal soon enough. That’s not a bad place to be and having that excess cash flow will help you progress in your real estate business quicker.

The reality is, this is a capital intensive business. Good luck!

@Patrick Visgil I’ve been house hacking for several years and have rented to friends multiple times. Make sure you set the same standards/expectations that you would with anyone else so they know that they can’t take advantage of you! I had no issue renting to friends but know others who have because they didn’t make their expectations clear, don’t make that mistake.

@Zachariah Hays couple of things come to mind here

1.) Budget in a couple of extra months of hard money costs in case the project runs long

2.) Don’t forget about the seasoning period (goes hand in hand with #1)

3.) Be prepared to not get 100% of the money out and understand that leaving some money in isn’t necessarily a failure.

@Serena Tillman when you’re first getting started it’s easy to want to jump right in immediately out of excitement. But buying a duplex that’s cash flow negative with the hopes it will appreciate is a dangerous game and will likely lead to short career in real estate investing. I know a couple of wealthy people who have had success doing this only because their primary income was substantial so they were easily able to support the negative cash flow. But I’m talking about people with $30k+ of disposable income a month.

My advice would be to make it a rule that you only buy properties that cash flow, period. Keep looking and I’m sure you can find a property where the numbers work!

@Leo Tokar yes, I think there’s absolutely need for that here too, interesting niche!

Welcome to the forums Leo, I'm intrigued by the idea of a sober living facility, is that in The Springs or Denver?

@Demarcus Crump I second @Brenden Mitchum in that I haven’t skip traced large lists, it’s generally a couple of specific people so I can’t give you a good answer there.

 A lot of people say don't rent to friends/family, I disagree. It's simply a matter of setting standards/expectations the same way you would with any other tenant. I rented to several friends and had no issues because there was no ambiguity going into the arrangement as to how it would work. 

The mortgage forbearance programs are just a deferment to the future, you will still have to pay those missed months and he should still have to pay his rent. I would resume charging him and make sure he makes up what he missed. 

Whether you're paying your mortgage or not is irrelevant in my opinion. If he's living in the house then he pays rent. When it comes to property management, set your standards and never veer from them. Don't make exceptions or violate your rules. 

 House hacking a single family can work just as well as a small multi. I've been doing it for years and not only cover my mortgage but actually cash flow each month. I don't know your market very well but look around online and see if single room rentals are posted. 

I bought a split level house that functions a lot like a duplex so depending on what construction is like in your city that may be an option for you as well. 

 Have you tried calling a local title company? Mine set me up with an account on their database where I can pull decent lists (out of state property owners with specific amounts of equity for example) for next to nothing. If you're trying to start cheaply that may be a good option, of course you have to skip trace the lists from there but I've had success finding peoples' numbers simply by googling them.