All Forum Posts by: David Girdusky
David Girdusky has started 2 posts and replied 4 times.
Post: Rent by Room, Nassau Count, New York
- Posts 4
- Votes 1
Thank you Scott, appreciate it!
Post: Rent by Room, Nassau Count, New York
- Posts 4
- Votes 1
Quote from @Don Konipol:
Quote from @David Girdusky:
I'm looking for my 2nd investment property and am contemplating the rent by room option. My target location is Nassau County, Long Island. As the profitability is a struggle here on cashflow, I thought rent by room may help get me there. Does anyone have any experience with rent by room in Nassau County? Specifically I'm trying to figure out how many rooms I can rent out of any given property? Does it go by how many bedrooms there are, or is it just a max per site? I ask because if there is a formal dining room that can be converted and I make a 1 bedroom into a 2, the price may be better than a traditional 2 with no dining room. Some of the houses in Nassau County have 4 or 5 bedrooms plus a 2 bedroom basement. I'm new to this, so any advice would be great. Lastly, any thoughts on purchasing a small camper and renting that out as well in the driveway? Just trying to maximize the property.
There is undoubtably a need for rooming houses - and definitely profitability. However, it’s NOT just a matter of one type of investment or the other and which has the greater ROI. Running a rooming house will take a LOT more management time, a LOT more management skill, has a LOT higher risk, is a much smaller target market, costs a lot more in insurance, has a much higher chance of lawsuits, is much more difficult to deal with tenancy, has a tenant pool of less “desirable” tenants, and is much more of a hassle and aggravation.
Some people compare “by the room” with STR as far as combining a business with an investment. But, there is a MAJOR difference. STR is scalable - hence, the STR owner can choose as much or little involvement as he wants as an entire outsourcing industry exists. Rent by the room is typically NOT scalable - but if you’re the one who discovers how to
scale” it you can become a billionaire!
Thanks so much for your thoughts. I assume it will be much more hands on, especially when considering the owner will be paying the utilities and other bills, plus higher insurance. Turnover is also a concern, I heard on a podcast that one should expect a 1–2-year renter stay on average for the best tenants. I have a contact who rents rooms in Manhattan and has had mixed success, but at the end of the day is cash flowing better than renting whole. I'm certain there are legal limits to how many occupants can rent a single-family home as well, and finding this information out by each local town is what I'm interested in.
Post: Jersey Shore Summer Rental
- Posts 4
- Votes 1
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $589,000
Cash invested: $59,000
Rented as seasonal rental since 2021.
What made you interested in investing in this type of deal?
Friend's referral.
How did you find this deal and how did you negotiate it?
Friend referred a real estate agent, spoke with them and was given a 2 day pre-market heads up on the property. Was actually not the highest bidder, but the connection to the Agent, even though new, and writing the classic "pick me" letter helped. I offered the purchase price, and since they were starting over, I asked them to include the furniture, which they kindly did.
How did you finance this deal?
FHA with 10% down.
How did you add value to the deal?
Summer rentals by the week, Winter rental by the month.
What was the outcome?
The house was built in 2014, so no update needed. Maximizing the rentals was the only available.
Lessons learned? Challenges?
I should have bought 2. :)
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Chadwick Beach Realtor, Lavallette NJ. Excellent.
Post: Rent by Room, Nassau Count, New York
- Posts 4
- Votes 1
I'm looking for my 2nd investment property and am contemplating the rent by room option. My target location is Nassau County, Long Island. As the profitability is a struggle here on cashflow, I thought rent by room may help get me there. Does anyone have any experience with rent by room in Nassau County? Specifically I'm trying to figure out how many rooms I can rent out of any given property? Does it go by how many bedrooms there are, or is it just a max per site? I ask because if there is a formal dining room that can be converted and I make a 1 bedroom into a 2, the price may be better than a traditional 2 with no dining room. Some of the houses in Nassau County have 4 or 5 bedrooms plus a 2 bedroom basement. I'm new to this, so any advice would be great. Lastly, any thoughts on purchasing a small camper and renting that out as well in the driveway? Just trying to maximize the property.