All Forum Posts by: Spencer Cornelia

@Marcus Auerbach I've been told by multiple people that most brokerages aren't interested in hanging a license from an out of state investor.  It sounds like I need to find the rock star brokerages that have room available for out of state agents.

I'm looking to take my test in the next couple of weeks and I am currently looking for brokers who are open to having out of state investors as a part of their team.  Does any one have any recommendations?

@Teresa Ranieri House hacking will be the most financially advantageous thing I'll ever do in my life so I'm very thankful to have come across this concept when young and single.  You can still house hack in other ways, even with spouse and kids.  Casita, convert garage to AirBnB, buy a house with a guest house, etc.  Obviously not as easy but still possible.

The maid cleans kitchen and dining area, the two bathrooms located in main hallways, the hallway floors.  She does not clean 3 of the bathrooms (located in private rooms) nor does she clean any of the bedrooms.  $20 each additional for private room and bath.

Since the flooring is wood (vinyl plank) and the bathrooms aren't high quality, private bedroom and bathroom are easy to clean when tenants move out.

@Ana Coello You clearly have a knowledgeable agent lol since I've asked a few people and no one knew about this obscure law.

I definitely consider it a loophole as the owner is getting lending on a single family house, yet the multiple tenants produce income as if the property were a multi family.  A little bit of compromise == huge returns.

@Craig Curelop In Vegas, it's definitely the only way to have any type of respectable cash return on single families.  I'm definitely part of the extreme with 6 roommates, but we're still in a market where 3-4 roommates will cash flow.

I'm a little surprised that the 'rent by the room' strategy isn't as prevalent on BP forums.  I'm assuming it's because RE investors tend to be of an age where spouse and kids are common and who would not consider renting out rooms to strangers.

@Mindy Jensen I actually wasn't aware that a law like this could exist until I saw a reply of yours on a post a few months back.

I'm not entirely sure how a reasonable person could be expected to know a law like that.  Let's say I killed it with bitcoin and just wanted some friends to live with me in a new 7 bed, 5000 sq ft mansion I just bought.  How would I know that this isn't legal?

I understand that an easy rebuttal would be - "You should have consulted with a lawyer to buy a unique house" but I don't think it's within reason to expect someone to consult with a lawyer if he/she just wants to get some roommates.

The area I'm in has a shortage of affordable rentals for people who have low income, bad credit, or a place to live where they don't have to sign a 12 month lease.  I'm offering value to the community and I see no victims so I personally don't see an issue with this.

I did spend some time reading through the Clark County zoning laws and the online documents and didn't see any mention of unrelated people so I'm not entirely sure where the fine print exists to say the hard rule is 5 people.

(btw..I'm just ranting.  not trying to argue as what you are saying is valid)

@Will C. My friend wrote about the house hack here: How I Made $144k in 21 Months House Hacking

It's been an enjoyable learning experience thus far with learning how to manage so many people.  I think a strong corollary is managing teams of people in Real Estate Investing, which is what I'm looking to do in 2020 (currently 2 rehab teams, ideally 4-5).  Additionally, I've had to learn how to be more assertive.  With so many people living under one roof, you have to set boundaries and rules from day 1 and ensure that they are enforced whenever something comes up.

Re unrelated people: I spent time looking in the zoning and other related documents online and couldn't find anything.  I've since heard that it may be 5.

My 2019 estimate of 4x is including all of the rental income.  I have confirmed with my lender that I would qualify without rental income because he does not count it as a projection (meaning I tell him I will rent out all rooms and make X every month).  However, I report all income so my tax returns will show 4x income this year so I can't see him not considering it.

@Quito Keutla House hacking certainly requires compromises on living standards, especially at this level.  I'm aware that I'm in a very unique and short-termed position in life where I can compromise on a lot of things without the need to consult with anyone else.  28 years old, single, no girlfriend, no kids, and a hunger to increase my income at a greater rate than my interest in living by myself.

This is definitely not forever, but house hacking has provided me with the necessary capital in order to make moves in my real estate investing career.  $800/month for your client is really solid.  I have coworkers living on their own and paying upwards of $1000+ each month.  Blows my mind how much money is being lost to opportunity cost.

@Jordan Moorhead Just a couple of good decisions and you went from 0 to 20.  House hacking is the greatest secret for financial success in America and we both took advantage.  That's a lot of appreciation on the duplex.  My plan is for this house hack to allow me to begin purchasing at the rate you are.

@Francisco Gomez there are so many options in the Summerlin/westside area to house hack.  If you can swing a $350k purchase price, you can get (what I would consider) a luxury 5 bed house in a very desirable neighborhood.  Furnish the rooms and you could easily get $650-$700 a room which would cover all of your living expenses.

You can find options in the $275k range for 4-5 beds in slightly less desirable areas, but still plenty fine to live in.

Lastly, if you wanted to run a marketing campaign for 5+ bed houses in this city, I'm sure you can find one owner who would be looking to sell that would offer creative financing or reasonable purchase price.

This is all assuming that there are no parameters potentially holding you back.