All Forum Posts by: Payton Haight

Hi Adebayo, I would recommend house-hacking if you are not already. You can buy a single family home to live in and rent out the other bedrooms or buy a small multifamily (2-4 units) and rent out the other units. House hacking will allow you to buy deals with less money down, get a lower interest rate (compared to investment property loans), and reduces your risk while getting started.

Hi Lawrence, I am not in your area, but curious to hear about your experience with the program so far. I will send you a message.

Hey Malik, That is a pretty big hit to take to your cash flow - sorry to hear that. It doesn't look like you mentioned how much equity you will have tied up in either of these properties after you refinance, but assuming you will have a decent amount of equity tied up, I would sell the property in the 'not so great' area. Unless you see rent growth and/or appreciation for that house, I would want to move my equity in to something that can get better returns. 

Hi Mink, that is a tough situation. What are your specific HOA rules and are you on a waiting list with your HOA? Was this townhome previously your primary residence? I had a house (originally a primary residence) in an HOA with a cap on the % of rental units. Fortunately, I never ran in to the issue, but selling was my back up plan.

Hi Bart, I got started with a duplex in an area I was very familiar with. I looked at properties/analyzed deals for about a year before pulling the trigger and even though I was confident with the numbers it still felt scary at the time. 

I would recommend connecting with an investor-friendly agent and other investors in your area (or the area you plan to invest in). Having someone else double check my numbers gave me a lot more confidence to move forward. 

As far as analyzing deals, I use an excel spreadsheet but it functions pretty similar to the BP 'Rental Property Calculator'. You can combine total rent for all of the units for the income and do the same for estimated expenses. I really like small multifamily. You can share expenses between all of the units and there are quite a few options for creating cash flow. Glad to answer any questions I can!

Hi Dozar, I absolutely take past history in to account when it comes time for lease renewals.  If a tenant has been paying their rent on time, taking reasonable care of the unit, and does not have a history of lease violations I would want to renew their lease. The opposite applies if they have not been doing those things. You can ask yourself the question: do I want another year of the same experience? That is what you are most likely signing up for when you renew an existing tenant. Make sure you are following laws specific to your state for the process.

congrats Alex! It looks like you made this into a great deal. How long did it take you to complete the renovations from start to finish? Did you have to get a zoning change for the property?

Hi Maverick, will this property be a long-term rental? Looks like it will cash flow, but personally I would like to see a better cash on cash return for a $270k investment. Unless you see significant future appreciation, rent growth, or some other factor that makes it worthwhile for you, I would look for an investment that can get better returns. 

@Justin Brin - I agree, rent by the room and mid term rentals are more work than long term rentals or buying stocks. It depends on your goals, skills, and personal situation. I have used the mid term rental strategy to allow me to buy properties in A & B areas and still get cash flow. Over the past few years, rent growth and appreciation in these areas has outpaced other areas. Over a 10 year time horizon I am projecting that cash flow, combined with appreciation, combined with tax benefits will do much better than an S&P 500 index fund. I can do a cash out refi to access equity tax free and also have the option to switch the properties back to long term rentals if I don't want the extra work at some point.

Hey @Chris Morris, I have had this combo unit in my 2b/1b mid-term rental since July 2023. No issues with the unit itself. The guests do have to run small loads and they take quite a bit longer to dry. I let guests know about this when they are booking so they aren't surprised when they check in. Still, guests don't love it and I am considering putting in a small stackable washer/dryer at some point. The combo unit may be fine for a 1b/1b unit since you will likely have 1-2 guests max.