All Forum Posts by: Miller McSwain

We are currently House Hacking in Colorado Springs, and we plan to move our property into an LLC in less than a year when we move out.

1 thing to consider: although it may be cheaper, by a few hundred dollars, to set it up yourself or with an online service, we plan to use an asset protection specialist so that we can start building that relationship. This isn't a hobby for us, we plan to expand, so having a good asset protection strategy (long-term) will be very important. 

Just to give you a data point, I am rent-by-rooming in Colorado Springs. I found that the total rent for RbR to be 1.55 x the the traditional long-term rental rate. 

That may help give you a ballpark 👍

@Anthony C Palacino
I have not. I've heard of people finding VAs on onlinejobs.ph and upwork.com . These could be good starting points. 
Also, there are probably more expensive VA services that have already been trained to Cold Call. Finding some of those may also be a good option.

I found that US Bank offers personal lines of credit for $5k-$20k at 10% interest with no annual fee.
I figured it wouldn't be a bad idea to have access to this for a rehab overage, black swan event, etc.

Does anyone know how simply having access to this, but not actively using it, will affect my personal credit? I am buying my first property in 5-8 months and would hate to mess with my credit score.

Thanks!

I'm in the same boat as you @Hossam Elaskalani
I'm graduating in May 2022 with an engineering degree, and then I'll move out to Colorado Springs.
Personally, I will be doing something similar to your option 1. My fiancee and I will purchase a 4-5 bed house to house-hack (renting the rest of the house by-the-room), purchasing with a 3-5% down owner-occupied loan. We will repeat the process of moving out and acquiring another house hack with low down-payments multiple times.

After moving out, we will use an enhanced cash flow method, rather than LTR, to ensure these properties cash flow. We will likely continue renting-by-the-room, but short-term-rental and corporate/medium-term rentals are also options.

If you want to learn more about the Springs market, I'd HIGHLY recommend checking out @Jenny Bayless and @Chris Lopez "Colorado Springs Real Estate Investing Podcast". They interview local investors, discuss market updates, and more.

I am also looking to do a rent by room HH in the Springs! Congrats!
What zip code did you find this property in, and how many beds/baths does it have?

Now that is a good "quick tip"! I can quickly check motel room rates in an area to get a rough feel for the STR rates.

Thanks Paul!

Thanks Luke! I'm actually in Knoxville, TN, so I'm super close to your market!

Are there any ROUGH rules of thumb for determining a STR or Mid-Term Rental from a Long-Term Rental rate?

For example, if I know a property can rent long-term for $1500/month, can I do x2 ($3000/month) for MTR and x3 ($4500/month annual avg) for STR?

That was just an example, but has anyone found any decent rules-of-thumb for this that I can use for the initial analysis?

Thanks!

@Jim Pellerin
Thanks! So could I draw up an Amendment that says something like "we found _______ wrong with the property during inspection, so the purchase price is being changed to $100,000" and have both of us sign that paper? Would that be a good way to go about that?