All Forum Posts by: Andrew Kubik

I will second the HELOC strategy to tap into your equity. If you're looking to put in a moderate amount of work, you could make some pretty good returns by doing a co-living arrangement. I would suggest also looking into the Murfreesboro area.

What system do you use to manage co-living arrangements? Do you have to use a platform like PadSplit or can you manage it through something like Rentvine? 

Go to a local REIA group and meet like minded investors. You'll find lenders, wholesalers, and other investors to connect with.

I started out renting out the other side of my duplex on ABNB. The entire building is probably worth $500K. It helps build a "proof of concept" so that banks will lend you for bigger projects in future he future. You're going to make mistakes when you first start out. Keep those mistakes small. 

It's unlikely, but transferring your property to an LLC could trigger the "due on sale" clause, especially if you have a low-rate mortgage—so I'd be very cautious about that. If asset protection is your goal, getting good insurance might be a safer option.

As for your parents' properties, it's possible to transfer them to an LLC and you can fund your portion of the LLC with cash from a HELOC.

I’m really sorry to hear about your situation. Unfortunately, this seems to be a common issue around Nashville. Many of the newer buildings have been put up quickly and aren’t always built to the highest standards. Hopefully, there will be some valuable lessons learned from this construction boom.

It really comes down to the contract and lease agreement. Generally, the tenant is responsible for returning the fridge and oven in the same condition they received them, minus normal wear and tear. If the appliances weren’t clean at move-in, you can’t expect the tenant to deep clean them at move-out.

That said, if the tenant left food in the fridge that caused buildup or got into the crevices, they would be responsible for cleaning that up. It’s all about setting clear expectations from the start.

This is great analysis. Unfortunately, it seems like the ABnB market is saturated in Nashville. There will be a healthy number of bookings in the summer, but owners will have to ride out the winter months. This is due to overbuilding STR complexes and all the extra hotel room capacity doesn't help out either. I think the next couple years are going to be hard for those people that recently got into the space and have large mortgages. Those that can ride out the storm ahead will do well.

Great advice! I completely agree with both points—handling lawn care and allowing pets can really give you a competitive edge in the market and they go hand in hand because people that have pets have lawns...

Lawn Care: Taking care of the lawn yourself and rolling the cost into the rent makes a lot of sense. Not only does it make the property more appealing to tenants, but it also helps maintain curb appeal. It also gives the property manager a reason a reason to view the property to make sure the tenants are maintaining it. One caveat is that tenant would probably like to also have snow removal service in the winter if they are paying for lawn care care in the summer.

Pet Policy: Pets (especially dogs) are a must in a single family rental home (as long as the HOA allows it). At this point more than half of renters have a pet. Owners that don't allow pets will lose more in vacancy than in potential damages. Might as well open up your tenant pool and collect the extra income from pet fees and pet rent. Most tenants with pets are prepared to pay a premium, and any minor wear and tear on floors can easily be handled down the line.