All Forum Posts by: Jeff White

@Daniel Lynch  I would say have a conversation with your GF.  IMO, it is totally acceptable to collect rent.  She is a live-in roommate, and she is still using the water and electricity.   

Once you are married or have children, then it can change, but if she was living with another person, would she be living for free?  Probably not unless it was family. 

Also, I'm not sure the size of each duplex unit your are buying, but it is probably at least a 2/1 unit, and I'm guessing with your GF that you won't be renting the other room, so in a way, her paying rent to you is like if you were renting that room out.    

@Michael D'Alessandro  I would reach out to Fannie Mae/Freddie Mac conventional lenders that work with real estate investors.  Credit unions and small local banks usually are more expensive and specialize in commercial lending (portfolio loans). 

@Erich Wolff Welcome to BP!  You are in the right place to learn.  David Greene's book is fantastic, and you have the right ideas.  The tough thing for you and most people with full-time jobs is finding the time to balance out BRRRRing out of state and your day job.   

Have you considered starting with a house hack and then try a BRRRR if you have time? You can get a house hack here to start, get a great education on property management, working with contractors, etc. All of that in your spare time.

BRRRRing out of state won't be as intimidating, and you probably have good systems in place that you can apply in another market.   

Hi Mike,

Where is @Chris Mason when he is needed?  Anyways, Home Possible conventional 5% down payment program is a fantastic one to use, you just have to find a multifamily that is in a low income tract so there isn't a restriction on how much income you make.  Also, the down payment would be the same whether you have a 2, 3 or 4 unit.  The rates would probably be different though. 

Check out Chris's post: https://www.biggerpockets.com/forums/49/topics/609...

I agree with others, most of the facebook marketplace people are just shopping around, but you should schedule a group showing to eliminate most people and not rely on anyone showing up at a particular time.  If they are truly interested, they will show up for the appointment, if not, then you know they aren't that interested or they will try and reschedule with you.  

This will reduce a lot of stress, and it also creates a competition amount prospective tenants to fill out an application sooner when they see other people also looking at the place. 

@Chris Mason Fantastic, that's good to know.  Thanks!!

@Chris Mason Quick question: if primary residences aren't held to the cap, would that mean a house hacker could potentially buy a property with a conventional loan each year as much as he or she wants since they are all primary residence mortgages?   

@Ann Nguyen I'm not sure the correct name, but they look like little one foot Christmas trees. 

@Joanne Hanson That's awesome you are planning ahead.  You are already taking the right steps.  

I would suggest going to a couple of real estate meetups and find investors that own a bunch ofrentals in your market already.  

Offer to take them out for coffee/lunch to learn more about their real estate business, ask them for advice because real estate investors love helping newbies out, especially go-getters.  They will definitely share lots of information.  

I would even ask for what attorney they use, CPA, property manager, leasing agent, etc.  Good, honest, and ethical landlords work with like-minded professionals.    

Also, screening tenants is the most important piece of the puzzle to landlording.  I believe a lot of landlords end up with evictions, horrible tenants, and such because they didn't do the work in the front-end.  They wanted to fill a vacancy fast, didn't do proper screening, or didn't verify the tenants employment.  Will you be accurate everytime?  Nope, but at least you can mitigate that risk and be in this business long-term.  Check out Brandon Turner's book on Managing Rental Properties.  It is a great intro book to get you started and help prepare you. 

@Ann Nguyen You can also look to replace your lawns with mulch, rocks, and drought resistant plants to minimize water use and dealing with sprinklers.  I just did it for one of my property's yards here in Colorado, and it looks great.