All Forum Posts by: Daniel Haberkost

 Welcome to the forums Dan, BP is a great resource and I've made quite a few connections on here. Do you know what you and your wife are looking for in a first deal?

Hey Kevin, I'm from Ohio which has a similar climate/culture to Wisconsin. I moved to Colorado Springs two years ago and wouldn't choose to live anywhere else. Relative to the midwest we don't really get winter here (in town), it's ALWAYS sunny and people are much nicer. If you like the outdoors you just can't beat it. 

@Rob Hayes that’s good that you’re thinking ahead.

He and I have had many disagreements but that’s normal and we talk through them until we come to a resolution. We don’t have specific verbiage in our operating agreement outlining what to do if we disagree on repairs but I really don’t think we need it.

@Rob Hayes

Everything should be in writing in your operating agreement, have you not set one up yet? What that operating agreement says is entirely subjective. I can tell you that in my partnership I handle property management and we set a dollar amount threshold ($250) for making decisions about spending money without the other person.

So if a tenant calls me with an issue and I have to get a contractor to the property for less than $250 I don’t need to talk to my partner. Does that help?

Hi Jack, I've been house hacking for several years and can offer some insight. See my thoughts in bold below.

1. There is a normal washer and dryer in the basement, should I allow tenants to use this for free if I'm paying the water bill? Or should I sell them for coin op machines? Or charge them $50 a month to use?

I factored utilities into their monthly rent and then advertised it as an all inclusive price but I don't think it would hurt if you tried pricing as planned and adding "+ $50/month for utilities" in the posting. Worst case scenario you change it back after a few days or a week of no success. 

2. Does it make sense to take out HML or friend/family loan to finish the basement for 20k to get $800-1000 rental income per month? Same with the attic. Or should I do it myself slowly over the next year?

Assuming your numbers are accurate, if you're able to get another (on the low end of your estimate) $800/month immediately after doing a $20k renovation those numbers make sense. This is of course if you're able to rent out the unit quickly and actually receive the rents you say. Your financial situation is important here too, if you don't have any liquid reserves I'd hesitate on taking on more leverage. 

3. Attic and basement have only 1 entrance/exit, so would never be legal units. Is it too risky to put tenants in there?

I rent my basement which is the same but you have to make your own decision here. 

4. What software (if any) should I use to run credit/background checks when finding tenants?

Zillow makes this extremely easy. 

5. Any general advice for beginning househackers?

Screen your tenants thoroughly. Finding good deals is commonly discussed as the key to successful investing (and it's a huge part of it) but managing your assets efficiently is just as important. You already mentioned the background/credit check but make sure you also call their last two landlords, call their employer and conduct move in/move out reports that they physically sign. Finding trustworthy, responsible tenants makes this business much easier. Don't cut corners on the vetting process!

@Aaron Rowzee thank you and yes! Agreed 100%, these arguments are analogous to what goes on in the world of politics every day......

@Kyle Hoppman I have to second @Cameron Tope here in that we underestimated the holding costs in our first BRRRR. Don't forget about the little things like the appraisal/utilities/etc. If it's your first rehab expect it to go much longer than you think and budget in a fudge factor because the rehab will very likely cost more than you think.

Real estate is extremely forgiving if you buy right so focus on getting a good deal and these other problems become less of a concern. 

 House hacking is a great way to start! It's amazing how quickly you can grow your financial position when you eliminate your housing expense. I'm not familiar with Westchester but if it's near NYC I'd imagine it's fairly expensive. If you can go with a small multi family property then that's great. But if that ends up being outside of the budget single family can work extremely well with the proper layout. Have you spoken with any lenders?

I personally would recommend staying away from condos as the association rules can be problematic for house hackers. 

Personally, I'd say I'm passionate about real estate because of how quickly it has allowed me freedom over my time. I'm not actually that interested in doing deals or managing tenants (although it's far more enjoyable than other work I've done). However, I am passionate about climbing mountains/snowboarding/mountain biking among other things and because of real estate I'm able to do these things on my schedule. So it's really just a means to an end for me. 

@Mike Wadsley thanks Mike, I’ve met Bill. I’ll read the article!