All Forum Posts by: Rene Hosman

Scott Trench made a spreadsheet for exactly this scenario! I'd recommend listening to this episode of BiggerPockets Money and then using the linked spreadsheet to help you decide

https://www.biggerpockets.com/blog/money-572

Paging @Garrett Brown our resident STR specialist - what say you about tips for lead photos on listings??

 That would be a great question to ask at Momentum! 

I can only speak to myself personally but I've continued to invest, knowing properties may not cash flow much but I've invested in value-add so focusing on appreciation. I'm sure that many of the speakers will have different opinions depending on their area of expertise too

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What forms of payment do you accept from tenants? 

Collecting rent is something we don't talk about much unless it's not happening but I wanted to start a conversation about what methods of payments you accept and why. Options like our partner Baeslane’s free online rent collection platforms, payment apps, and ACH transfers are convenient for both parties, but traditional methods like checks or cash are still widely used.

I’d love to hear about your experiences:

• What rent collection method do you prefer and why?
• Do you think certain methods help reduce late payments?
• Have you tried different late fee structures or flex rent (allow tenants to pay weekly or biweekly instead of monthly)?

I'll start: I use an online rent collection platform that allows tenants to schedule auto-pay via ACH transfer, or my tenants can drop a check off directly at my bank.  I don't accept venmo, paypal, or zelle because of the fees and having to set up a business account. I like the auto-pay option as I get a notification when rent is paid and when the deposit has hit my account. I only allow tenants to pay on the 1st of the month but I would consider alternate payment schedules dependent on the situation and tenant if they asked. My rentals are in Denver which has strict late payment laws and I was able to customize the late payment options to automatically apply in the right timeframe to abide by the laws and also not accept partial payments which I very much appreciate.

And if you’re curious about Baselane’s 2-day quick pay features or have questions, feel free to ask!

I completely understand your frustration—situations like these can be incredibly challenging, both financially and emotionally. Dealing with non-paying tenants in a state like Massachusetts, which has strong tenant protections, is no small task. While the system can often feel one-sided, there are strategies you can consider to navigate this situation more effectively.

First, ensure you’re working with a lawyer experienced specifically in landlord-tenant law in Massachusetts. The nuances in state regulations require an expert who understands how to expedite the process within the legal framework. If you’re not satisfied with your current attorney’s approach, it may be worth seeking a second opinion to explore other strategies or angles you might not have considered.

Next, focus on compliance with housing codes and tenant protection agencies like DCF. While the heater issue adds extra stress, addressing it promptly will protect you from further fines and penalties. Document all your efforts, including repair invoices and communications, to show you’re acting in good faith as a landlord. This can also bolster your case if the tenants continue to act in bad faith.

If possible, explore alternative dispute resolution options like offering the tenants a cash-for-keys agreement. While it may seem unfair to offer financial incentives to problematic tenants, sometimes it’s the quickest and least costly way to regain control of your property and move forward.

Lastly, connect with local landlord associations or advocacy groups. They can offer support, share resources, and connect you with other landlords who’ve faced similar challenges. Sharing experiences and pooling knowledge might uncover creative solutions you hadn’t considered.

Cheers,
Rene

Have you put in the zipcode for that area in the BiggerPockets agent finder? https://www.biggerpockets.com/business/finder/agents 

Congrats on starting your real estate journey with a duplex! It’s clear you’ve put thought into your investment, and the challenges you’re facing are common for many first-time investors. The fact that your property is in a strong area with high-quality renters and growth potential is a major advantage.

First, revisit your numbers to include all expenses and potential tax benefits, like depreciation and mortgage interest deductions. This might help you see the property’s performance in a clearer light. If rents are under market, consider small increases or exploring additional ways to optimize your cash flow, such as taking on another roommate.

Refinancing is also worth exploring in the future. If interest rates stabilize or your property value has increased, you might secure a better monthly payment. That said, selling is another option to free up cash for a lower-cost, higher-cash-flowing property. However, weigh the costs of selling and the potential long-term appreciation you’d lose in this area.

Real estate investing is a learning process, and you’re already ahead by taking action. Stay focused on your goals, and trust the experience you’re gaining will help guide your next steps. Keep us updated on how things unfold!

Congrats on starting your real estate journey with a duplex! It’s clear you’ve put thought into your investment, and the challenges you’re facing are common for many first-time investors. The fact that your property is in a strong area with high-quality renters and growth potential is a major advantage.

First, revisit your numbers to include all expenses and potential tax benefits, like depreciation and mortgage interest deductions. This might help you see the property’s performance in a clearer light. If rents are under market, consider small increases or exploring additional ways to optimize your cash flow, such as taking on another roommate.

Refinancing is also worth exploring in the future. If interest rates stabilize or your property value has increased, you might secure a better monthly payment. That said, selling is another option to free up cash for a lower-cost, higher-cash-flowing property. However, weigh the costs of selling and the potential long-term appreciation you’d lose in this area. Have you seen Scott Trench's sell or rent calculator? It's a tool he made to evaluate deals on the BP Money Podcast and is available free to anyone!

Real estate investing is a learning process, and you’re already ahead by taking action. Stay focused on your goals, and trust the experience you’re gaining will help guide your next steps. Keep us updated on how things unfold!

Congratulations on taking the leap toward buying your first duplex and house hacking! Feeling anxious is completely normal, but from what you’ve shared, this opportunity seems like a great fit for your goals.

Your numbers look solid. With $1400 in rental income offsetting your $2600 mortgage, your personal housing cost is $1200—less than renting while building equity. Plus, with $4200+ in monthly income and the option for overtime, you’re in a strong position to manage this responsibly. Make sure to maintain a cash reserve (3-6 months of expenses) to handle unexpected repairs or vacancies.

It’s smart to consider the “what-ifs,” but don’t let them hold you back. Real estate investing carries risk, but this is a calculated move. Even if you temporarily have to carry the full mortgage, your income makes that manageable. Over time, you’ll also have the option to raise rent to further improve cash flow.

House hacking is an incredible way to learn, build equity, and set yourself up for future opportunities, it's how I started as well and it was the best decision I've made! Treat this first year as a chance to gain experience and refine your approach. Stay disciplined, track your expenses, and connect with other investors for support and advice.

 A year from now, you’ll likely look back on this as one of the best decisions you’ve made.

Good luck—I’m excited for your journey!

Cheers,
Rene

 I'm doing a refi on a multi-family building right now with a lender I found here on the BiggerPockets Lender Finder - https://www.biggerpockets.com/business/finder/lenders They've been able to help me get a DSCR loan which others on this post have mentioned and they've been pretty quick should be able to close before the new year in less than 3 weeks from when I started the process!