All Forum Posts by: Ryan Rotz

Thanks @Dan Guenther, I appreciate the feedback. It is a lot to take on for our first deal. One problem we're running into is that we need 3bdrm + office or a 4bdrm. I haven't seen anything that's sold in the last 6mo that meets those requirements. Most houses seem to have 2-3bdrms upstairs and 1-2bdrm in the basement. 

I've also considered building a 10x12 office/shed in the backyard so that it would be easier to find a house that worked. You can buy them for about $20k. Maybe I should revisit that idea. 

Hi @Kathy Henley, thanks for your response. That's great advice to analyze based on long-term rental rates as well. I put my numbers below. About $660/mo cashflow and 4.6% CoC return.

The city planner said there is no ordinance for short-term rentals. It's small town that's growing rapidly so in 5 years things may change. The house is zoned for multifamily so there are options there as well. I also talked with a few Airbnb hosts in the town and they're booked year round. 

This is a primary home with a rentable basement. This house is significantly cheaper than buying a duplex in the area so we aren't too concerned about paying the monthly bills. We'll be paying for the rehab ourselves. I'm planning on 2-3 months for the top floor remodel (hence the holding costs), then we'll move in. Then we'll start on the basement remodel.

Here are the numbers for a long-term rental, if we were to rent the top and bottom units today (after the remodels).

My wife and I have a house under contract that we're planning to house hack. The plan is to rent the 1000sqft basement as a short-term rental (1800/mo) then when we move away after a few years, rent the top 2000sqft as another short-term rental ($2300), or rent both together. Having long-term tenants are also an option but the cashflow and cash on cash returns are half. 

The numbers seem to work but it needs a lot of cash and I'm wondering if we should just buy a regular house to live that needs zero renovations and then take our cash and start investing in small multi-family out of state, which I'm planning to do eventually anyway. What are your thoughts?

These numbers are as if we were renting both units as short-term rentals today. Once we do rent out both units in 3-5+ years, the income will be higher. 

I'm happy to provide more details if anyone is interested (I'm a numbers guy). Thanks all!