Underrated episode, this man is dropping gems. Love the mindset and also love that he is providing affordable housing in an area where the trend is the opposite nowadays.
I have 4 rooms with two bathrooms rented separately , considering to convert screened in porch and 2 car garage into additional rooms , parking will be an issue , I do cover all utilities and provide internet , one of the tennats cuts the grass and shows the rooms to prospective tennats . Insurance more expensive because you have more then 2 separate leases under one roof , it is better cash flow if you are willing to hustle , some people do hybrid version where u can rent daily vacant rooms on AirBB especially if you have tennat who can handle some managment task for discounted rent .
Ah, thank you for providing this info/insight! I’ve had a couple of short-term rentals since 2017 and I’ve been thinking about taking that to another level. The thought of renting per room has been on my mind so I’m happy this came up. 👍
Great video! Always creative ways to make money in real estate. We go more traditional style. We have a 25 million dollar rental portfolio and flip 150-200 houses a year. Maybe we will look into the room renting!
If someone knew how to do it they would succeed. U must build new tho and u must realize how to build it, I realized how to do it simply by designing Floorplans on graph paper for years. If you do that you will realize how to build it. Also research passive house but I can't tell you how to build it 😅 video coming soon though
I loved the episode, I wonder though, converting garage to bedroom involves insulation, new duct work for ac/heating and so much more. I just cannot imagine all that work can be done within his budget. That is true miracle👍
Let me get this straight.. You're only adding a bathroom to the basement master suite but making everyone else renting rooms (4+ people) share ONE bathroom in the home?! That could be a big mess lol
Not a bad angle but it sounds like more headache than it's worth long term. It's not easy having roommates and I know you're not living in these places, but these roommates are inevitably going to drive each other nuts and cause interruptions with cash flow. But full support and more power to you if you're making it work. No judgment, there are many ways to make money in this business! I guess I'm a little bitter because I tried the airbnb route and got a little bit burned by that model.
Yea that’s exactly what I’m thinking. I would love to know how as the landlord you avoid being asked to step in for interpersonal conflicts. Because I have interest in getting calls about that for $300 a month in cash flow.
I am actually in Nashville. I want to know how you could do this legally. Not to fuss, but because I want to do it, but don't know how to make it legal. Based on zoning, no more than 3 unrelated adult is allowed to live in one house. And single family house is not allowed to be used as rooming house unless it is owner occupied. Please advise.
Talk to your city. Sometimes yea it's the official rule but they don't actually care unless you pick crappy tenants that make neighbors complain. Buy houses that worst case you could break even if you had to rent normally.
What about housing laws? This wouldn't be legal in many markets (including mine) where the city's housing code has a limit of 3 non-related residents. Neighbors get pissed about all the cars and people coming and going and report you to the city, and then you're screwed.
You forget they tend to work together. Imagine a bunch of buddies working at the same travel construction company, working on the same projects day to day. They don't mind leaving their nice personal cars at "home" if they have families or a homebase, and just commuting together in the company vans or pickups. They don't always have to have a car each, especially if their money-conscious enough to look for cheaper housing. But also yea fck the neighbors everybodies gotta hustle
I do this in Wisconsin and It's not often that everyone is home at the same time, so chances are rare that there are that many cars parked at once. Also in bigger cities a lot of tenants walk or bus and don't have cars.
Love the fresh approach. Not sure I'd want to live next door, especially with six cars in the adjacent driveway. But as the owner, it would be great in blue-collar or college areas.
The renting by the room thing is great for the owner but overall, it increases the market rate for rent overall and can be a vicious cycle for the future renters. When the overall rate goes up, everyone wants to charge more and it becomes very difficult to rent a single family home since market rents reflect whole house rental prices regardless if they are rented by the room. But if you're the owner, obviously it's favorable.
No talk about pulling permits? No talk about zoning requirements? No talk about leases? Uses tenants for labor? Not a good business plan for bigger pockets content to be condoning ? This is not the business plan bigger pockets should be encouraging ? This is not west Texas where their is oil fields where you stack tenants into a single family home without appropriate zoning requirements? This is not a “great business” model? This is the business model that created Airbnb....come on bigger pockets ! You can do better!!!
Underrated episode, this man is dropping gems. Love the mindset and also love that he is providing affordable housing in an area where the trend is the opposite nowadays.
2X your rental income without 2X your expenses! I'm in!
Fan-Effin'-Tastic! Good on this man blazing his trail.
I have 4 rooms with two bathrooms rented separately , considering to convert screened in porch and 2 car garage into additional rooms , parking will be an issue , I do cover all utilities and provide internet , one of the tennats cuts the grass and shows the rooms to prospective tennats . Insurance more expensive because you have more then 2 separate leases under one roof , it is better cash flow if you are willing to hustle , some people do hybrid version where u can rent daily vacant rooms on AirBB especially if you have tennat who can handle some managment task for discounted rent .
Ah, thank you for providing this info/insight! I’ve had a couple of short-term rentals since 2017 and I’ve been thinking about taking that to another level. The thought of renting per room has been on my mind so I’m happy this came up. 👍
Great video! Always creative ways to make money in real estate. We go more traditional style. We have a 25 million dollar rental portfolio and flip 150-200 houses a year. Maybe we will look into the room renting!
Where do you get funding to buy your long term properties?
If someone knew how to do it they would succeed. U must build new tho and u must realize how to build it, I realized how to do it simply by designing Floorplans on graph paper for years. If you do that you will realize how to build it. Also research passive house but I can't tell you how to build it 😅 video coming soon though
Just wondering what do you do with utilities? Do the tenants split them or do you include utilities with the $500 rent?
I do this overseas so i can tell you he has to pay for utilities
Phenomenal story. Great Job! Wishing you more growth health and prosperity! Thank you for sharing.
I loved the episode, I wonder though, converting garage to bedroom involves insulation, new duct work for ac/heating and so much more. I just cannot imagine all that work can be done within his budget. That is true miracle👍
Great episode!!
So needed
Padsplit sounds interesting
Mini multifamily gettn the cash flow
thx for the helpful insight! Interested to see if it will work in a bigger city?
Doing it in bigger cities crushes it! Rents are typically much higher there, so more interest from renters, and more people/tenants to choose from
Amazing information. Thanks
I am truly inspired,this is a model that most people here in South African townships use, but they are going on a smaller scale
This is awesom! I've been doing this strategy the last 3 years
What types of areas does this work well in?
Is this the full video? I feel like I've listened to it before and it was longer, but I can't find it :(
How do the renters get along with each other?
Let me get this straight.. You're only adding a bathroom to the basement master suite but making everyone else renting rooms (4+ people) share ONE bathroom in the home?! That could be a big mess lol
“ Walmart never closes”
2020 - Someone sets them all on fire and now they are closed (in my area) 😂
Where do people park? Parking is my biggest problem for room rental properties.
Not a bad angle but it sounds like more headache than it's worth long term. It's not easy having roommates and I know you're not living in these places, but these roommates are inevitably going to drive each other nuts and cause interruptions with cash flow.
But full support and more power to you if you're making it work. No judgment, there are many ways to make money in this business! I guess I'm a little bitter because I tried the airbnb route and got a little bit burned by that model.
Yea that’s exactly what I’m thinking. I would love to know how as the landlord you avoid being asked to step in for interpersonal conflicts. Because I have interest in getting calls about that for $300 a month in cash flow.
What is the name of the bank? I have a house already paid off . I want to start a business like this.
Do he is leveraging if tenants ? That doesn’t usually work without drama ?
Is that legal?? Renting each room out to diff tenants ?
How does he leveraging the leases for these room? Month to month ?
My guy Felipe 💪🏼💪🏼
Laverne & Shirley! “We’re gonna do iiiiiit”
Great information!
I am actually in Nashville. I want to know how you could do this legally. Not to fuss, but because I want to do it, but don't know how to make it legal. Based on zoning, no more than 3 unrelated adult is allowed to live in one house. And single family house is not allowed to be used as rooming house unless it is owner occupied. Please advise.
Talk to your city. Sometimes yea it's the official rule but they don't actually care unless you pick crappy tenants that make neighbors complain. Buy houses that worst case you could break even if you had to rent normally.
Yeah, I checked into this and my city (as well as the one I want to invest in) also have the 3 non-related residents rule.
What about housing laws? This wouldn't be legal in many markets (including mine) where the city's housing code has a limit of 3 non-related residents. Neighbors get pissed about all the cars and people coming and going and report you to the city, and then you're screwed.
Perks of being a Mexican Investor
You get the hook ups with Spanish speaking construction workers, landscapers , electricians and Plumbers
Que buena estrategia! 😮
Si
I wonder how the neighbors feel about this living situation? 5 or 6 cars at 1 house?
They can suck it. They ain't paying his bills.
You forget they tend to work together. Imagine a bunch of buddies working at the same travel construction company, working on the same projects day to day. They don't mind leaving their nice personal cars at "home" if they have families or a homebase, and just commuting together in the company vans or pickups. They don't always have to have a car each, especially if their money-conscious enough to look for cheaper housing. But also yea fck the neighbors everybodies gotta hustle
I do this in Wisconsin and It's not often that everyone is home at the same time, so chances are rare that there are that many cars parked at once. Also in bigger cities a lot of tenants walk or bus and don't have cars.
Love the fresh approach. Not sure I'd want to live next door, especially with six cars in the adjacent driveway. But as the owner, it would be great in blue-collar or college areas.
We have some ethical issues hear bigger pockets ? No talk on permits or leases????zoning ???
No permits for sewer or electric ruff inns????
I hit the 👍🏼Button......but I am torn.....
Serious zoning violations with converting the garage.....
I would only do it by the university
I've heard that near hospitals is good for this too. You get nurses and med students.
The renting by the room thing is great for the owner but overall, it increases the market rate for rent overall and can be a vicious cycle for the future renters. When the overall rate goes up, everyone wants to charge more and it becomes very difficult to rent a single family home since market rents reflect whole house rental prices regardless if they are rented by the room. But if you're the owner, obviously it's favorable.
How does that work? Wouldn't it increase supply and depress rent since you're putting cheap rooms on the market?
Juil actually the smaller you rent the more expensive it gets per sq foot.
Hmm
You may get problem with city
Felipe had his morning Coke that day.
I always ask Why
Girl: I don't like you
Me: Why?
No talk about pulling permits? No talk about zoning requirements? No talk about leases? Uses tenants for labor? Not a good business plan for bigger pockets content to be condoning ? This is not the business plan bigger pockets should be encouraging ? This is not west Texas where their is oil fields where you stack tenants into a single family home without appropriate zoning requirements? This is not a “great business” model? This is the business model that created Airbnb....come on bigger pockets ! You can do better!!!
Oh shut up
Shut up lol stop complaining you are mad because he’s making crazy cash flow !
I am thinking the same thing. no way this is legal. I am looking into it because I want to do it.
It's his niche and obviously its working