All Forum Posts by: Gregory Schwartz

Shower thought: What if I rented my house out during home games in a college town?

My wife and I are looking to move to College Station, TX next year. Ideally we would buy a multiplex and house hack. But if we want a nicer, larger single family house we were thinking about renting out the house for home games to help lower our cost of living. Looking at Air Bnb we could get up to $1500 for a home game weekend.

Is anyone using this strategy? I'd love to hear pros/cons

@Justin Teal I have had the same thoughts about my local market. Asking local investors and remaining patient will go a long way in just about any market. 

If it just happens that your area doesn't cashflow well with the available duplexes a live in flip can be a great way to build capital for future deals. Instead of selling you can refinance after just one year to speed up your investment journey.  

Good Luck

BP,

I am visiting Huntsville to see a duplex I have under contract. This is my first investment property and first time to Huntsville. On top of meeting with my team I also plan on driving through neighborhoods  with rental potential. Any one have recommendations for good cash flowing neighborhoods c+ to b with duplex to quadplexes ?

Update: After a weeklong back and forth with the seller the deal fell through. Long and short I held to my numbers (8-10% cash on cash) and the seller was unwilling to budge on his asking price. Thank you to everyone who commented on this post. I learned a lot over the last week. 

@Bill F. I will be the first to admit that I developed a distaste for Jacksonville based mostly on preconceived notions and not on solid in-depth research. I should take my own advice and do my research.

@Chris Martin you make some really compelling points. I've made offers in the past in Jacksonville with no luck but will bring it back into my scan. 

@Chris Martin I have made multiple offers in the Wilmington area with no luck. Jacksonville makes me nervous, there are a lot of very inexpensive homes that were built in the last 5 years driving rents extremely low.  In Jacksonville, the 2 bedroom apartments are usually rented by young Marines who have to live on base but want a crashpad for weekend shenanigans. Maybe that's over thinking it but that was my logic. 

No updates yet, still working through the offer/counter offer process.

@Rhonda Hall thanks, I'll definitely take you up on that offer. The Huntsville BP members have been super helpful, which makes this process that much easier.

@William C. I ran the numbers through the BP rental calc and came up with 8% cash on cash (7% Vacancy , 10% repair, 11% management)

@Mihir Bhimaraju @Alex Sabio @Kyle Reynolds @Mel Hayes @Michael Tempel @Jed Devine Thanks for the vote of confidence

@Account Closed I have had my eye on the Raleigh area, great town but haven't found much in the way of small multiplex that hit my numbers

@James Byrd so far your comment has stung the worst, labeling me as a Hornet driver. I prefer the slower lower life, 120kts 100ft. You can have your dog fights, I'll stick to fast-roping Marines and door gunners. If I had to guess, you're a single seat single engine fighter pilot... F-16s?

@Wendy Schultz thanks for the comment, yes I have an inspection contingency in the offer. I've had to walk away from more than one offer as a result of various "gotchas" 

@Account Closed yes I've seen pictures. The rent is for all 4 units (500/unit).

I think the most interesting thing about the comments so far is how everyone's past and current situation drives their comfort level with my current plan. Maybe in 10 years, when I'm a seasoned investor who has survived the next recession, I will look back at this thread through a different lens. But today, for where I'm at in my buy and hold adventure this is the best move.

I really wish I had more of an update than this for everyone, waiting is the hardest part. 

@Assaf Kehati  This question makes me think of the quote, "the best time to invest was 20 years ago, the second best time is now". If you're in it for the long hall and hit your numbers then you should be able to weather the storm in the long run.