Doubling Cashflow by Renting out Rooms with Pharmacist Ryan Chaw | Rookie Podcast 35
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- Опубліковано 15 жов 2024
- From $25,000 purchase prices last week to $300,000+ group houses this week!
We head to the Bay Area today to meet pharmacist Ryan Chaw, who ventured about an hour away from his hometown and began buying 1 house per year and renting them by the room to college students.
Ryan collects nearly $11,000/month from 18 tenants, and is creating the kind of generational wealth his grandfather used to put both him and a sibling through college.
Does renting to college kids sound like a disaster waiting to happen? Well... Ryan has found several ways around this, and in this episode he outlines the checklists, systems, and "personal touches" he uses to self-manage without the headaches.
Ryan opens up about an early failure, too. He wasn't getting all his rooms filled, and he realized he wasn't doing a good enough job advertising. So he developed step-by-step, "P.R.I.M.E." marketing method to attract a steady stream of qualified applicants... and you'll learn each step today.
If you're struggling how to figure out just how to create cashflow in a spendy market, follow Ryan's lead! Get creative, consider rent-by-the-room and other outside-the-box strategies, and reap the rewards of greater appreciation and stability that come with high-priced areas.
Connect with Ryan:
Ryan’s BiggerPockets Profile - www.biggerpock...
Ryan’s Website - www.newbiereal...
Click here for full show notes: www.biggerpock...
In the UK renting by the room is so popular the local government puts lots of restrictions on it and requires a license, it is a hassle. There is also a lot more management as more tenants and problems can be had but the cashflow can be two to three times the normal single let rents if done well.
Great job making the leap Ryan! Sounds like you are doing a great job, looking forward to following you on your real estate journey!
The first $100 responsibility sounded good to me initially but I had a middle aged lady who just didn't tell me about a water leak under the kitchen sink at all and she just let the water drip for months. I would have gladly absorbed the $100 by quickly tightening the piping rather than repair the cabinet with plywood that I had to try to make pretty. I advise against it. It's cheaper to know any problem as early as possible. Only gets more expensive over time.
Love this guy! Thanks for all the wonderful tips💯
How do you handle taking out trash in a SFH, among the room tenants
Do you assign that task to a particular tenant or Do you rotate that task between them ?
He said that he has not yet had to deal with the non-payment of rent, but I am curious how he would handle the process.
I can’t do college students or rent rooms. He is in a real good position to target the parents that will pay to keep a roof over their child’s head. College dorm prices are insane.
Good Travel nurse tenants need to be treated like gold😇
Because all they are doing in your rental is sleeping 😆
I'll be on biggerpockets wthin a few years idk if its 2 or 5 but it'll happen
I hope to see you on there!! Best wishes to you 🤗
@@sisterstaketoo1981 thanks!
By using that heloc as a down payment for the next property, doesn't that count against your DTI? How did you get approved?
Probably using a non QM loan if I were to guess.
If you have high enough income, it won't be an issue.
Rents are a great passive income when we get the right tenants.
All of these neat little tricks to unload your responsibility as a LL work really great until they don’t. Like making them pay for repairs under 100. Things deteriorate at a constant rate and you handing it off in working order doesn’t suddenly make it their responsibility to fix, and if they understand that all you’ve ensured is that every issue will cost you at least 100. That is to say you won’t get the call until damage is at least that much
Controlling tenants Aircondition 🤣. That could go wrong with the wrong tenant lol. PRIME is a good strategy.
It's the ultimate in passive-aggression! lol
May be just me, but Zelle payments can be retracted; ACH payment has fewer drawbacks
Does the houses or rooms have to be furnished?
I think furnished would be best, since you don’t know what they could be bringing in. Ex: old furniture that they'll leave in your house when they leave, and bedbugs or roaches.
Renting out rooms is one of the best passive income streams 💪
we are always the first comments
Do you feel this generate more than renting to sec 8 tenants since that is a guarantee check and secured monthly?
@@happylifegrace4674
Ask anyone who's dealt with section 8 tenants for a few years and the nightmares they've put up with. You'll see.
He's very smart, I'd love to know his full system.
Which would give more cashflow? Renting by the rooms or airbnb? I'm going to buy in Philly so there might be more people airbnbing but not sure
Airbnb is shit right now because of covid.
Depends on the location. Airbnb here would not do nearly as well. You get hit with alot more tax, maintenance and management cost on an airbnb. If it's in a vacation market though like the smokies or the beach then it would probably make more sense to airbnb.
How can you buy property every year with mortgage loan due to debt to income ratio?
They count the rental
Income and it decreases your DTI
Great methods of finding passive income
Could some share a free excel spreadsheet for managing multiple units
I'm a contractor and a real estate investor and don't agree with this Fool system. As a contractor, we obly deal with who has approves invoices so is this lazy owner allowing tenants approve work?
Great show !!! He is local to me and I will reach out !!
Sir, if you allow a tenant to repair a toilet, and he has no idea what he is doing, and he floods the house, you asked for it.
A little sacrifice now for a lot of pay off for the rest of your life.
Renting is what college apartments do right not 1800 for a college apartments. Its a beautiful model any thing to get that cashflow more
Can you share more about college apt renting structure? How does this compare to sec 8 rental since it's a secure check from govt but renting not to a family
@@happylifegrace4674
Why are you so focused on section 8? It sucks. You can only rent college apartments in a college town, anyway.
I dont think it is fair to say section 8 sucks as opposed to some. Section 8 tenants suck and some section 8 housing authorities are challenging due to excessive red tape and bureaucracy. That being said, there are many section 8 success storiesout there. Section 8 real estate investing is a niche that with the requisite knowledge and practice can yield great reliable cashflow, low turnover and superior security in C class areas and down economic cycles .
By using that heloc as a down payment for the next property, doesn't that count against your DTI? How did you get approved?
Don’t banks require rent receipts for a year before the rent can be counted as income?
Interesting, thank you for the info Rubedo! Bought my 3rd property in July and they wouldn’t count my rental income on the 2nd so I assumed it would be the same with a heloc. Closing on a heloc in December, and using it to buy another rental. Thanks again, Charlie