All Forum Posts by: Kaitlyn Beard

Hey Holly! 

This property looks good for AirBnb! I am also wanting do the same as I have experience with long term leasing but not short term. The potential for more cash flow is there and that is why I want to get into it. I am nervous because of my location and am unsure of how it will do, but who knows! 

Do you only have one housekeeper? The hardest thing with AirBnb is going to be the constant flow of people coming in and out. This means if you are not doing the cleaning yourself and you wish for it to be strictly passive, then you have to have a really solid crew you can depend on. I have seen in most cases that air bnbs hosts have a TEAM of people who have different cleaners that way if someone goes out or can't clean then another will be there. That way, in between guests you know 100% sure that the property will be serviced for cleaning. 

Good luck with everything and I am very curious to see how it goes for you! 

Thank you for your support! What would you define as red tape? I did not know the PMI stayed glued to the loan. I'll have to look into that but that is a good point you have. I do have to share that where I live there are not a lot of worthy multifamily homes :( My hope is for there to possibly be newer ones that come up. I was visiting a friend and they started building duplexes in the neighborhood. I want to snag one! One step at a time... once again thank you for your input! :)

 Thank you! You are not wrong, I totally understand that this kind of investing is not "one-size fits all," but I the beauty of it is that peoples opinions can lead to some very informative conversations and further research. Also, thank you for the references!

 Thank you!!! 

 Yes! Thank you for your input. The first house is no longer my primary residence as it is my first rental. With some time I have decided to save some more and if the market dips I plan on buying a property at 20% down in Little Rock or Jacksonville, AR. One thing I do not want to do is rush myself into an investment when the numbers have a potential to be more promising. 

There are many reasons to make specific calls and I currently am having the same debate! Having an LLC comes with a cost, right? SO, ultimately your cash flow will be affected. However, like they have stated, the coverage is great! You can get coverage through property management, landlords/homeowner insurance and even add an umbrella policy! That is what I plan on doing for my properties going forward.

Hey!

I have followed BiggerPockets for quite some time now but this if my first official forum post that I have typed up! My name is Kaitlyn Beard (I go by Keeks) and am in the Air Force. I am in Texas, stationed at Dyess AFB. At 19 years old I bought my first 5/3 home and started house hacking. In other words, I rented out the rooms and the tenants/roommates covered the mortgage. When I discovered what rental properties were and how it is not rocket science to obtain them, I found the right lender who allowed me to get another loan. Keep in mind that I used 2 0% down VA loans for these homes. The second one I am in I also house hack so my mortgages are both paid for. I am now wanting to get another property but do not necessarily have enough cash yet to put down 20% on an investment home (conventional). As of now, I think these are my options. What do you guys think???

Option 1:

I get an FHA loan at 3.5% and find a 2-4 door multifamily and continue house hacking.

Option 2:

This one I did not know I could do until today, unless I can't? It is just what a friend and fellow investor told me their lender said. (I'll be fact checking it with the same lender this week). I was always under the impression that a conventional loan is anywhere from 15-30%. My friend, Ryan, told me I should get a conventional loan at 3-10% down. Yes, I would be paying PMI, but my current house I live in is too big for me and my roommate. I need to run the numbers based off a prospective property I find, but if I got a smaller house I think it would be doable. Don't worry I'll be doing some math!

Option 3 (a little unsure of this one):

HELOC because of the $80k+ in equity I have in my first invested home. Part of me thinks this will disturb my cash flow but I guess not because then I would be able to invest in 2 single family homes with 20% down on each.

What do you guys think?

I currently own two properties in which one I rent out and one I am house hacking. Soon, I plan on buying my third property. However, I love the benefits of an LLC, part of me is leaning toward no LLC and just have insurance, a property manager and an umbrella policy going forward. This is so it does not disturb my cash flow as much. Also, if I were to stick to not having an LLC, should I still open a different bank account up for the real estate "business?" To my knowledge, the tax benefits are very similar in comparison to having versus not having an LLC. Can I still write off expenses without an LLC? Thanks in advance for the guidance!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $239,000
Cash invested: $10,000

This was my second home, also purchased with a 0% down VA loan. Yes! You can have multiple VA loans. And if you are curious, need guidance, or have questions... don't hesitate to message and ask me!

This property is my current primary residence and I am able to house hack this as well!

What made you interested in investing in this type of deal?

I bought this deal because in my first house-hacking home, two prospective tenants asked me, "Hey, do you have a house or a room for rent?" At the time, the other house was completely occupied. But, I thought to myself, not "I don't think I can make this work," but "how can I make this work?" After calling lender after lender, I soon discovered as long as I have a lease for the first house, I can pull off getting a second! Those two tenants helped me pay for the second mortgage. Thanks to them!

How did you find this deal and how did you negotiate it?

It was quick and it was stressful! I actually did not think the offer was going to be accepted. I wrote a letter attached with my offerings and the family loved my story and my intent, thus accepting the offer! They let me a letter and left it on the counter the day I received keys and closed. I will always keep that letter... thank you!

How did you finance this deal?

0% down VA loan

Lessons learned? Challenges?

Whilst house hacking, I learned much about the eviction process, as I had to work with my first "trouble tenant." In fact, he still owes me money! Long story short, screening is important!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $200,000
Cash invested: $10,000

This property began with an initial house hacking, and has pretty much served as a BRRRR property as well, but without the "refinancing" portion. This house is currently rented out within a military town.

What made you interested in investing in this type of deal?

It was my first property! I did not want to rent an apartment, so I purchased a home. I soon realized I was house hacking after the fact and that is what led me to the next property!

How did you find this deal and how did you negotiate it?

Keller Williams

There was not too much harsh negotiation. Both the seller and I are Active Duty military and they had orders out of state and needed to sell the property quickly so I purchased the home and both parties were satisfied! Minor fixes here and there but nothing too crazy.

How did you finance this deal?

0% VA loan

How did you add value to the deal?

Renovations such as the following: cabinet paint, vinyl flooring, paint, removed popcorn ceiling and replaced with drop down, new baseboards, etc.

What was the outcome?

Lots of learning and the home is occupied with an $800 cash flow!

Lessons learned? Challenges?

Many, but I am stronger and smarter for it! I have learned many skills ranging from plumbing to carpentry to laying flooring myself, installing baseboards, texturing walls, to removing carpet, and much more.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes! I have a handful of AMAZING agents, fellow/local investors, mentors and some lenders that would be glad to help if local!