Hey man I hate taking time to comment but your channel shows great potential, clear and high quality video and great energy and good tips. Keep up the good work
Great tips as always!! I’m still afraid to try short term rentals like Airbnb. I did start house hacking and turned it into a full blown rental. Then I bought another house with my nephew which we’re house hacking. I know I’m not doing it right though...im not cash flowing and the houses come with a hefty mortgage. We’re just having the tenants pay down the mortgage but I totally see the potential if I can actually do this correctly.
Hi!! Yeah, it can definitely be nerve racking at first. Interesting. What do you mean full blown rental? Are you renting the entire place or do you live there too?
I started out house hacking my first home but then I decided to move back in with my parents lol to really try and reduce expenses and give this real estate investing a shot. When I moved in with my parents I rented all 4 rooms out at my first home. At the same time I partnered up with my relative to buy another property to house hack. He lives in it and I still live with my parents.
I was actually thinking about refinancing and hopefully get out of paying PMI from the second home(the property I bought with my relative). My current rate is 4.5% and we bought the house for 480k. It last appraised for 487k but homes are listed for about 550k to 650k in that area (the houses I’ve seen are about the same size but updated and nicer appliances compared to our property). I have a hard time wrapping my head around the numbers enough to know when this makes sense to do. Do you have any advice for when to try and refinance and how to make sure you come out ahead?
Ahhh, ok that makes a lot more sense. Good for you for moving back in the folks to save money!! Something I’ve done between projects and what I advise a lot of folks to do to get their budget in order. How close to cash flowing are the two properties? In regards to value and appraisal, look at comparable sales in your neighborhood/area. It’s very important that the comps are in your “area.” If comp sales support $550k+ I’d consider doing upgrades and refinancing. Basic upgrades are easy to create a lot of value. Usually it’s paint, flooring (maybe trim work) and appliances (buy as set during holiday from Home Depot during big sales and with gift card/credit card hack). I personally create more valuable by swapping out kitchens and baths too, but that can be a much bigger project for folks.
Kai Li - Consume Less. Extract More. One House the mortgage is about $2,500 (20year loan at 3.75%)and I get $2,650 from tenants but I pay the utilities which usually comes out to $250-400 monthly so I end up paying around $250 out of pocket for that house. The house I bought with my nephew the mortgage is $3100 (30 year loan at 4.5%). We come out of pocket about $500-700 total each month (would probably be a little less out of pocket but my nephew lives in the master bedroom for under $500).
How do you feel about someone having keys to your house? Particularly if there are other units with long term tenants. It is standard in rentals to rekey for a new tenant but since it can't be done.... Thoughts? How do you handle that?
Culturally, I have a “no shoes in the house” thing too. How did your guests react to that/what did they say in their review? Do you think it’s too nit-picky?
Haha, yeah I think it's becoming more of a common thing to have a no shoe rule. Guests have responded really well. We have gentle reminders at the entry and posted around the house. We usually explain that we just cleaned the carpet, installed new flooring and reduces our cleaning fees, etc. Guests tend to really understand.
I have a floor that has a spare bedroom bathroom garage and access to a small yard id really like to keep the rest of the house off limits will that be enough for a rental?
@@KaiAndrew thanks for the reply Kai! the entrance to both garage and front door is on the first level however the top of the stairs turns left into the living room so there is no visibility if that makes sense. I just want to make sure its ok to host without a kitchen or living room. Thanks!
Kevin Castro Hey Kevin. Yeah, I think I’m visualizing that correctly. You totally can do that through Airbnb. You just want to be sure to let your guests know that in your listing. It’s called a “shared space” on the platform. Here you can tell your guests what areas you share and what is private for them. If you feel comfortable with it and you have the space I think it’s a great way to start another income. I should have a link below if you use it, I think you’ll get a $50-100 (it keeps changing) when you get your account setup and your first guest. Let me know if you have more questions setting up the space. Cheers!
@@kevz_c I think it would also be cool if you added a coffee pot, mini fridge, and toaster oven maybe in the room. That way, they can still prepare a small meal if needed. Just an idea :)
Hey Steven! Good question. If I were going to live there myself, I personally prefer single family homes with an unfinished basement (which I could build out and soundproof myself) and has a detached garage with space above it, which I could do the same as well. If it's a straight investment property, I'd probably prefer a tri or quadplex. Single family homes that you can fix up and/or add additional living space to (garage or basement) give you a bigger bang for the buck, most of the time, when it comes to resale.
@@KaiAndrew I have a condo income property and plan on also airbnb my spare bedroom and basement. So I guess it's time to get a good accountant. They're hard to come by!
Vincent Schuler I have a great one that I have used for over a decade. Great CPA and all around guy. He does taxes nationwide. Reach out to and tell him I sent you. Kevin Smoot: ksmoot@accountability-inc.com
Great video. I m to this and would like to airnb for a spare room in my place. But I have a question who is responsible for making the bed etc... during the guest entire stay?
Hey Kai, thanks for the video. I live in CA and am looking to buy a condo soon. Don’t have enough money for a SFH by the beach (where I live). Do you know if this works just as well in condos? Or do they have short term guest rules generally that impact the ability to do this? Or, if you’re in the place with them is it legal? Thanks!
Hey there! Yeah, I’ve been in your situation before. I hate HOAs. I actually unloaded and got rid of all my properties with HOAs just so I don’t have to deal with them. With that said, you should check and see if you can rent out a bedroom WHILE you live there too. I’ve seen some CC&Rs that allow it and some that just flat out deny transient traveling. But my $0.02 is don’t expect an HOA to allow to rent short term.
I'm doing 2 rooms with queen beds a TV with sliding mirror closets. The 3rd bed room I took off the door and turned it into a tv/office room. It has a desk, TV and wireless printer. I ran into a jam and had to replace my driveway ($5200). I wish I would've just prepared 1 room at a time then I'd be up and running until the next is ready. Any suggestions I'm kind of scared but I'm pushing forward. I'm scared because I'll be about 3k in c.c. debt and not sure of the outcome.
Thanks for your video. I am planning to rent 2 spare bedrooms on airbnb. 1) Would they have access to my kitchen? 2) How do you feel about security cansras outside (I have 3 doors) 3) I have an old dog. Would this be a problem?
How do you feel about renting out your spare rooms to strangers? Concerns?
Hey man I hate taking time to comment but your channel shows great potential, clear and high quality video and great energy and good tips. Keep up the good work
Great tips as always!! I’m still afraid to try short term rentals like Airbnb. I did start house hacking and turned it into a full blown rental. Then I bought another house with my nephew which we’re house hacking. I know I’m not doing it right though...im not cash flowing and the houses come with a hefty mortgage. We’re just having the tenants pay down the mortgage but I totally see the potential if I can actually do this correctly.
Hi!! Yeah, it can definitely be nerve racking at first. Interesting. What do you mean full blown rental? Are you renting the entire place or do you live there too?
I started out house hacking my first home but then I decided to move back in with my parents lol to really try and reduce expenses and give this real estate investing a shot. When I moved in with my parents I rented all 4 rooms out at my first home. At the same time I partnered up with my relative to buy another property to house hack. He lives in it and I still live with my parents.
I was actually thinking about refinancing and hopefully get out of paying PMI from the second home(the property I bought with my relative). My current rate is 4.5% and we bought the house for 480k. It last appraised for 487k but homes are listed for about 550k to 650k in that area (the houses I’ve seen are about the same size but updated and nicer appliances compared to our property). I have a hard time wrapping my head around the numbers enough to know when this makes sense to do. Do you have any advice for when to try and refinance and how to make sure you come out ahead?
Ahhh, ok that makes a lot more sense. Good for you for moving back in the folks to save money!! Something I’ve done between projects and what I advise a lot of folks to do to get their budget in order. How close to cash flowing are the two properties?
In regards to value and appraisal, look at comparable sales in your neighborhood/area. It’s very important that the comps are in your “area.” If comp sales support $550k+ I’d consider doing upgrades and refinancing. Basic upgrades are easy to create a lot of value. Usually it’s paint, flooring (maybe trim work) and appliances (buy as set during holiday from Home Depot during big sales and with gift card/credit card hack). I personally create more valuable by swapping out kitchens and baths too, but that can be a much bigger project for folks.
Kai Li - Consume Less. Extract More. One House the mortgage is about $2,500 (20year loan at 3.75%)and I get $2,650 from tenants but I pay the utilities which usually comes out to $250-400 monthly so I end up paying around $250 out of pocket for that house.
The house I bought with my nephew the mortgage is $3100 (30 year loan at 4.5%). We come out of pocket about $500-700 total each month (would probably be a little less out of pocket but my nephew lives in the master bedroom for under $500).
How do you feel about someone having keys to your house? Particularly if there are other units with long term tenants. It is standard in rentals to rekey for a new tenant but since it can't be done.... Thoughts? How do you handle that?
Culturally, I have a “no shoes in the house” thing too. How did your guests react to that/what did they say in their review? Do you think it’s too nit-picky?
Haha, yeah I think it's becoming more of a common thing to have a no shoe rule. Guests have responded really well. We have gentle reminders at the entry and posted around the house. We usually explain that we just cleaned the carpet, installed new flooring and reduces our cleaning fees, etc. Guests tend to really understand.
I have a floor that has a spare bedroom bathroom garage and access to a small yard id really like to keep the rest of the house off limits will that be enough for a rental?
Hey there, Kevin! Yeah that sounds like a great setup. Does it have a separate entrance any chance?
@@KaiAndrew thanks for the reply Kai! the entrance to both garage and front door is on the first level however the top of the stairs turns left into the living room so there is no visibility if that makes sense. I just want to make sure its ok to host without a kitchen or living room. Thanks!
Kevin Castro Hey Kevin. Yeah, I think I’m visualizing that correctly. You totally can do that through Airbnb. You just want to be sure to let your guests know that in your listing. It’s called a “shared space” on the platform. Here you can tell your guests what areas you share and what is private for them. If you feel comfortable with it and you have the space I think it’s a great way to start another income.
I should have a link below if you use it, I think you’ll get a $50-100 (it keeps changing) when you get your account setup and your first guest.
Let me know if you have more questions setting up the space. Cheers!
@@KaiAndrew I appreciate it ! if i do go forward ill use your link thanks for the info Kai.
@@kevz_c I think it would also be cool if you added a coffee pot, mini fridge, and toaster oven maybe in the room. That way, they can still prepare a small meal if needed. Just an idea :)
What’s the best way to house hack? Single family or multi? Your favorite?
Hey Steven! Good question. If I were going to live there myself, I personally prefer single family homes with an unfinished basement (which I could build out and soundproof myself) and has a detached garage with space above it, which I could do the same as well. If it's a straight investment property, I'd probably prefer a tri or quadplex. Single family homes that you can fix up and/or add additional living space to (garage or basement) give you a bigger bang for the buck, most of the time, when it comes to resale.
Taxes ? Home is now commercial ?
What is your experience in doing taxes with an in home rental?
It's not too bad. I work with a great accountant who helps me with it. Do you have rental income and a CPA?
@@KaiAndrew I have a condo income property and plan on also airbnb my spare bedroom and basement. So I guess it's time to get a good accountant. They're hard to come by!
Vincent Schuler I have a great one that I have used for over a decade. Great CPA and all around guy. He does taxes nationwide. Reach out to and tell him I sent you. Kevin Smoot: ksmoot@accountability-inc.com
Great video. I m to this and would like to airnb for a spare room in my place. But I have a question who is responsible for making the bed etc... during the guest entire stay?
Nobody. You only clean after they checkout.
Hey Kai, thanks for the video. I live in CA and am looking to buy a condo soon. Don’t have enough money for a SFH by the beach (where I live). Do you know if this works just as well in condos? Or do they have short term guest rules generally that impact the ability to do this? Or, if you’re in the place with them is it legal? Thanks!
Hey there! Yeah, I’ve been in your situation before. I hate HOAs. I actually unloaded and got rid of all my properties with HOAs just so I don’t have to deal with them. With that said, you should check and see if you can rent out a bedroom WHILE you live there too. I’ve seen some CC&Rs that allow it and some that just flat out deny transient traveling. But my $0.02 is don’t expect an HOA to allow to rent short term.
Is it worth it to do an airbnb these days?
I'm doing 2 rooms with queen beds a TV with sliding mirror closets. The 3rd bed room I took off the door and turned it into a tv/office room. It has a desk, TV and wireless printer. I ran into a jam and had to replace my driveway ($5200). I wish I would've just prepared 1 room at a time then I'd be up and running until the next is ready. Any suggestions I'm kind of scared but I'm pushing forward. I'm scared because I'll be about 3k in c.c. debt and not sure of the outcome.
Thanks for your video. I am planning to rent 2 spare bedrooms on airbnb. 1) Would they have access to my kitchen?
2) How do you feel about security cansras outside (I have 3 doors)
3) I have an old dog. Would this be a problem?
Informative stuff, keep it up!
Love the energy !!!
can i get a copy of that HOUSE RULES sheet that was left on the table..