All Forum Posts by: Natalie Schanne

Mike Conklin - Are you planning to sell your current home to live in a multifamily? (That's the only way to house hack unless you rent out rooms in your own house, which I've done with great success). What could your current home rent for? You'll be able to capture $250k+ in free capital gains if you sell after living there for 2 years, but you make it sound like it hasn't appreciated much. What is your debt to income ratio if you keep it? Can you get a loan for a decent size multifamily? How much sweat equity rehab do you want to do vs hiring out? Any of the guys above or I can help put you on an auto email for new properties that meet your criteria in your target areas. Ask any realtor you're thinking about hiring if she will help you property analyze expected ROI on a deal, tour you through lots of properties, and make lots of low ball offers. In general, most real estate agents are not investors. You might want to find one that is already if you want an investment and not another personal consumption decision like your current home.

Delia Rhinehart - the buyer and sellers agents are probably upset too because the owner owes them a full commission for bringing a ready, willing and able buyer. Talk to your agent and your agent's manager to see what attorney tools (or mediation) they would plan to use in this case to get the commission due their brokerage. I would have my real estate attorney (ask for a fixed fee of $800-1400, not $200/hr) draft a letter (or file a lawsuit) stating that you have incurred $$x damages (loan fees, inspections, your acq costs/time, lawyer) due to the breach of contract and that you intend to sue for specific performance. Maybe the seller will change his mind about cancelling... who knows if he received another offer and thinks he can sell to the next party with no consequences.

Eviction fees $____ (100-250)

Attorneys fees (for evictions) $____ ($250-500)

@Michael H. - You need more quotes. These all sound 2x normal. (Maybe they're building in risk if you're requiring them to finance up front). 

In VA, I paid less than $5k to spray paint an entire 2200 SF interior with drop cloths. I didn't have the ceiling prep work you have here, but I would expect to find someone who can scrape and sand for less than $15/hour.

Are you sure you want to invest $100k into a house that might still not have central air?

Brian Adzadi Mark Gallagher R J Drahcir I did some re consulting for City Center Lehigh Valley by the Phantoms Arena in 2016. The new apartment complexes they've built at Strata are doing really well (98%+ occupied). They're building Strata II with plans for more retail and apartments. There's strong live, work, play demand for professionals in the downtown. Evaluate the neighborhoods nearby the big building projects (where they're spending $100-150k/apt). The rental demand should spill over into the older, more affordable housing stock and raise rents and values.

Steven Wade - Consider this guy like any other long term renter along with other applicants. If you screen him (interview other landlords, check income 3x rent) and are comfortable signing a 12 month lease, then why not? He can do all the rent arbitrage he wants as long as he pays you monthly and is not damaging the place beyond what his security deposit will cover. Make it clear you require the same hassle free management situation: - he'll sign a 12 month lease at your asking price - he'll get all utilities in his name - he'll email you for non urgent repair requests and call/text you for floods/fires. - He'll get an insurance policy naming you as the additional insured. - He won't break any Hoa / local rental rules that result in you being called / harassed by anyone. - He will be responsible for paying immediately for unreasonable/abnormal repairs or property damage caused by his choice of use (weed smoke, hole in wall, whatever). If he creates the value like $3000 Airbnb income while paying you $1500, he should keep the reward for his labor. It's a lot more time and expense than you'd expect. I would NOT (at least initially) engage in a business relationship / property management type contract where I agreed to rent the unit to him for 50-80% of Airbnb income and keep utilities in my name. You could tie up your property and not be getting the rental income you require. We have several Airbnb management companies in Philadelphia who offer Airbnb rental / property management services for both owners and apartment renters. They charge 10-30% of income or fixed fees. In the summertime in philadelphia, a lot of MBA students rent their furnished, premium center city apartments for 50-90% of the actual price they pay because they are not there all summer and there's so much supply. They'd rather get something back than let it sit unoccupied for 2-3 months at $1500-2000/mo. So an opportunity was born for entrepreneurs to rent out spare furnished 'hotel rooms.' Like everyone else said, check your local laws. Philly started cracking down on under 30 day rentals.

Nam Tran - Pleasure to meet you. There are lots of great agents and investors in the Northern Virginia area who are happy to answer your questions including Russell Brazil . Learn about house hacking as a way to grow your personal wealth. I've met many young people in Arlington who stretched and bought a large 3-5 br town home or single family home and rented out individual bedrooms for $1000-1500/month. Even buying a 2 br 2 ba condo and renting half you can end up much better off in several years than if you rented a 1 br apartment in Arlington and just saved. There's usually strong home appreciation in Arlington because of the strength of the federal government and affiliated businesses.

Christian Baker - Good job being resourceful! I piece out a 5 br 3 ba and it works really well. (Rents are 30-50% above normal). Long term - it's almost impossible to properly charge the right person for damage to the common areas. When I held everyone jointly and severally liable for not reporting a significant water leak under the kitchen sink, they caused a stink but ultimately paid a portion. You'll also have tenants moving out when others stay, so you're trying to decide whether to take from one security deposit now and one later for common area damage. Charging against the sec dep for room damage is clear and obvious - like repainting and recarpeting that one room. You lose some 'economies of scale' when you do 1 room repairs at a time because the other portion of the house is still occupied.

Apologies for any confusion. References to dark pictures are my mistake. I included a link to a poorly marketed comp above.

The poster's Realtor.com link is here:

http://www.realtor.com/realestateandhomes-detail/2...

The poster's Zillow is here. It says it's currently a foreclosure: http://www.zillow.com/homedetails/2911-Marshfield-...

Brad Fausett - so both properties need $0 in repairs before you rent them out at top dollar? No paint or cleaning? What about $100 to change the locks? Do your deals still work for you long term if you add 10% in property management fees? Can you find your own tenants quickly without using PM or realtor? An agent will charge first month's rent or about 8% for every new 12 month lease. If you're not using outside rental marketing help, do you think your vacancy will be only 5% (about 2.5 weeks a year)? Do your deals require you to pay any utilities - trash - water - lawn care - snow removal for your tenants?