Become a Rent-By-The-Room Millionaire with The House Hack "Stack"

[@bestreviewer2038]

Just did this with a house and now make $2,400 a month on one house worth $300k

[@Mrs.WhiteLady]

🎉🎉🎉🎉

[@warreng1200]

10mo later, how's it going?

[@bestreviewer2038]

@@warreng1200 going great probably after repairs looking at $1800. Found a better one that does $3200. Still in construction tho

[@Z-713]

@@bestreviewer2038 that's awesome! I am just beginning to look into doing this. Do you have any advice? It seems like a lot to manage and it's pretty frightening to me, but I want the wealth. Thanks!

[@awkb777]

what market

[@mbinikutta9159]

I never thought of uncomfortable furniture. Something to consider. I have grocery cabinets with individual locks and keys.

[@Melanatedminimalist]

I loved like this before around a college -the apartments were nice and we kept it super clean and very very economical …. One rent pays everything

[@jeffreywhite958]

It works great around colleges and high cost of living areas like Denver, where the affordability of a one bedroom is very expensive and attracts a lot of professionals

[@richruelas]

Thanks, I starting my first house hack and I got some great ideas from this. Thanks again!

[@jeffreywhite958]

Thanks for watching, good luck on your first one!

[@harshrajthakor9733]

Hey Jeff, what property management software you use that allows to to manage all your properties and collect rent on room by room basics?

[@jeffreywhite958]

I like turbotenant for tenant screening and Hemlane for property management software. Also, I collect rent through any electronic method: venmo, paypal, zelle, cashapp, etc

[@kevincauto8080]

This was great. I really liked some of the nuanced things he did here. I do this strategy in my market. I have a home with a tv and without a tv. There's less conflicts or things to fight over if the common area doesn't have a tv and the furniture is not comfortable.

[@jeffreywhite958]

Thanks Kevin, it is the little small details that make a huge difference, no TV is one of them. You don't have to create a community to have a well run rent by room investment property.

[@GilliVi]

I have rooming houses in a university town. It works because the leases are short term, no longer than one year. I agree, it is better not to have a tv. Young people today watch movies on their laptops and phones anyway.

[@mbinikutta9159]

Agreed. I do not have TVs.

[@josephulloa626]

Great ideas ! I’m currently thinking about converting my up stairs master bedroom(600sq ft) into a studio with a separate entrance.

[@The.Irving.Barajas]

Did you end up doing it?

[@FreshAirRules]

For most areas that private entrance should add 10-15% to its value. Especially for women! It's such a good investment. What baffles me is why more people don't understand this value when underpinning a basement or just renovating it. If you CAN you SHOULD add that private entrance. Plus it's great for fire safety! And that's how you should sell the idea to your oppressive HOA or city zoning officers! Basements are so underrated. And when you jump on the floor the upper floor hears nothing. How nice is that! it gives the person so much more freedom on the ground floor. The challenge is making those windows secure. If you can't afford window security, go with fake window bars on the inside. They won't know. Hopefully.

[@CChaoticGaming]

Great numbers for sure, wondering is the electronic locks on the internal doors an issue with zoning though? I'd be curious how this property is zoned/was zoned at purchase and what steps you took (if any were needed) there. I understand you may just be willing to accept the risk even if not, but curious if there's any appreciable risk here

Thank you for the great tips. That house in san diego is way over 2k.

[@aarondavis5265]

I didn't see a utility expense on the report. I'm assuming Jeff puts the utilities into his name since there are multiple tenants living in a home. Is Jeff paying utilities each month and then charge the tenant?

[@jeffreywhite958]

Hi Aaron, I put the utilities in my name for the upstairs rent by room tenants and the rent includes the utilities, and the downstairs tenant, I bill them back using the square footage method.

[@embeee2011]

No tv means no tv fights. People can stream from their personal devices.

[@jeffreywhite958]

Exactly! You don't need to build a community

[@juliuss3965]

What rent/lease program does this guy use? I’m looking to rent per room my house but don’t know how I would charge my tenants

[@alexorovitz3273]

Hey Jeff, how do you advertise your rooms? Are there specific sites, or do you just post to zillow with a detailed description of the situation?

[@jeffreywhite958]

Roomies and FB Marketplace mostly, Zillow doesn't allow you to advertise room rentals.

[@chosentraining159]

This was a question i had too. I use roomies. Didn’t think of FB though.

[@9xqspx6]

I love the episodes with Chris Lopez; they're always packed with great info.

[@BuildingWealthWithRealEstate]

thank you!!

[@9xqspx6]

@@BuildingWealthWithRealEstate It is you to be thanked here, sir. :)

[@PROAmateur01]

How do you decide on how much to rent each room for? Furnished vs unfurnished rooms? Wanting to do this when I buy a house and trying to figure out what to provide and what to charge.

[@jeffreywhite958]

For strictly rent by room strategy, you only need to furnish common areas, living room, dining room, and stock the kitchen with plates, silverware, etc. You don't have to furnish each individual bedroom

[@momentum8640]

Great video. I'm getting into house hacking

[@jeffreywhite958]

Awesome, I was able to leave my W2 last year because of house hacking

[@georgeannekaufman4867]

I just wonder how this works with so many people--four upstairs and a family downstairs. In the city I live in, there is a limit of only four unrelated people who can live in a single family home. I've noticed that a lot of cities have this limit. Code enforcement has something to say about this if this goes over the "people limit" in a particular jurisdiction. How does this work out with so many people?

[@jeffreywhite958]

In most cities and counties, it isn't enforced unless extreme, in fact, code enforcement has it has low priority if you look at the stats, also, the state of Colorado just banned any local city's unrelated party rule just last week!

[@talus007]

I’ve been racking my brains trying to figure out how to work parking when breaking up a rental

[@jeffreywhite958]

Parking is very important for rent by room strategy, you have to make sure each person has a spot. Ideally, a corner lot would work best or an extended driveway or both.

[@ebony3944]

I really enjoyed this video. In your screening do you just do the basics as mentioned, 3x income, no arrests, evictions, etc or do you or are you able to also interview for personality/lifestyle fit as well?

[@jeffreywhite958]

Thanks Ebony! Yes, I do all those things plus confirm two previous landlord references, job reference, and all general references. In addition, since it is really hard to screen fit because everyone will tell you what you want to hear, I intentionally start with 2-4 month leases and stagger them out. Around the 30-45 day mark, you will know there personality and how they fit into the house with others, then I offer a 1 year renewal.

[@escalantej2015]

Should have asked Jeff how he runs the ac to keep everyone happy.

[@jeffreywhite958]

Upstairs is central AC and downstairs has a window unit but both tenants are happy

[@evefavorse5939]

Uncomfortably awesome-genius!

[@The.Irving.Barajas]

Been doing this for the past 6 years, currently on my 4th home with 20+ rooms. Great cash flow Im also building a mobile application to help manage your room rentals for free if anyone is interested

[@jeffreywhite958]

Great job Irving, please send me the app

[@The.Irving.Barajas]

@@jeffreywhite958 The app is not yet deployed to apple/android stores, but it will be in the near future. If you would like early access, feel free to send me a message

[@Ambrie7]

I'm curious on a couple things - Do you provide the shared dishes/pans/silverware, etc? - Do you leave those thing when you move? - How do you handle keeping the common areas clean? Thanks for sharing!!

[@jeffreywhite958]

Yes, I left all the common area furnishings after moving out. Also, I do provide a biweekly common areas and bathroom cleanings to maintain the space and report any potential leaks or damages as well

[@JNYC-gb1pp]

What is the cost of that service? Also, how do you handle shared bills?@@jeffreywhite958

[@yangzhang2536]

Does Jeff have a full time job while managing these properties? Very impressive

[@jeffreywhite958]

Thanks Yang! Yes, I still work my W2 while managing these properties:)

[@steve3in142]

Ok the utility are included?

[@jeffreywhite958]

Yes utilities are included, it makes it much simpler.

[@Joelalicea22]

Good idea I’m currently house hacking might implement this

[@lpslancelot05]

What you've done here man is amazing! I currently have a 5 bedroom house and I'm renting out all the rooms. Do you use the income to qualify for the next mortgage?

[@Mrs.WhiteLady]

He does! Works like a charm.

[@jeffreywhite958]

Hi @lpslancelot05 Yes, I still look at gross income when qualifying tenants, basically 3x gross income to rent, which is reasonable for a majority of tenants since it is just a room for rent, and a lot of people qualify.

[@zyrasynowksy]

Let’s get Jeff back and see how’s he doing?

[@Mrs.WhiteLady]

4REAL!! Jeff and I are on our 7th House Hack, 8th one coming soon 😊

[@Nightnurse305]

I like Jeff . He too cute !!

[@FreshAirRules]

Theft of food is always a huge problem in shared accommodation. Imagine having lockable lockers for unrefrigerated food in the kitchen. Then a minifridge for each in each bedroom. Then you wouldn't need a fridge in the kitchen giving it more space. Any other ideas?

[@Mrs.WhiteLady]

Assigned drawers and fridge shelves has worked for years with over 14 rent by room tenants. Not a single complaint.

[@FreshAirRules]

@@Mrs.WhiteLady You've been lucky......Consider yourself fortunate.

[@epg423]

I agree it would be much nicer having mini fridges in each room. Technically in this type of house you wouldn't need a massive kitchen just little kitchens/kitchenettes for each bedroom. No houses are built like that tho except sort of the one I designed but the main kitchen is still decent sized but I do have kitchenette for every bedroom, I actually have all the ideas to make a rental profitable but can't give them all away here

[@FreshAirRules]

@@epg423 It's no secret! It's just using space efficiently. Like wall mounted shelving and a loft bed/desk underneath. That's basically it. And NO CLOSETS. Closets are the biggest waste of space. And stairs should be outside if possible, never within the house as they waste so much space. And you make it profitable by designing as small as possible. The ultimate would be walls that could move so one person could opt for a little smaller space for less money and someone else could have a larger space. Of course this is only for non load supporting walls. After looking into house hacking, the sad fact is almost no houses are well laid out for it. Its better to buy a wreck of house that needs a full rebuild and do it right with many small rooms, no silly space wasters like living or dining rooms, and any room without a window would be for storage. Or start from scratch and place the biggest house possible on your plot of land, as tall as possible, just a box for maximum indoor space, no parking of course (cars coming and going alert your neighbors to how many people live there....not good), no yard, just "house on lot". Ideal room size in most areas would be 80-100 sq ft I think. Then there is the possibility of having shared workspace and pod type beds where it's locked and ventilated and soundproofed. Stack them so there's maybe 3 in an 8' ceiling space. That might be pushing it....:) Most people would need to sit up in there.

[@mbinikutta9159]

I started using lockable cabinets for each tenant. But I had no complaints for the past 10 years.

[@carriemanchester-to7yt]

Great video

[@ClintLeClairMD]

This was awesome- I wish there was a mastermind focused exclusively on this so we can go out, implement, and come back to a group to crowdsource solutions to novel problems in real time.

[@kevincauto8080]

I feel the same way. I've been doing this strategy for about 3 years. I follow people like Craig Curlop and Todd Baldwin online but would love to be part of a personal mastermind that uses this strategy.

[@biggerpockets]

We are currently enrolling for our House Hacking Bootcamp! You will have an accountability group as well as live Q&A sessions. Register here: get.biggerpockets.com/hacking-bootcamp-fall22-free/

[@FreshAirRules]

It's all about maximizing ever step, just like any business. Read my replies to see if you think I'm on track for maximization of income. I tend to really push things admittedly. Being a people person, being able to calmly listen to people without letting hem get you riled up is imperative, and making unobtrusive suggestions, helps immensely. And no, I an not selling anything nor do I have a channel. I've just been studying these concepts for a couple of years. It's so important to know your zoning limits so you know how far you can push things in your particular area. No book/group can teach you that though they can show you to go ahead with things asking forgiveness later instead of permission though this often ends in disaster. For most of these gurus, renting out 50% of their property is house hacking. Live in one half of the duplex and rent out the other. That's a joke. Focus on 90-95% and not renting to a family, the most brain dead real estate idea ever....you chop the place into small rooms (always gives you the max return in rental income per sq ft) for individuals or multiple people each if you're really ambitious. Use software to practice making up layouts once you have the footprint to work with. Non load supporting walls are not so difficult to move and will pay off handsomely. Even load supporting walls are worth moving if you're getting thousands more per year in rent. And that is easily possible. Almost every house is a dreadful use of space with stupid closets, storage rooms, dens, libraries, laundry rooms and a myriad of other space wasting areas robbing you of rental income. How many 100 sq ft rooms can you cram into a 1000 sq foot to work with in the basement with a 3' wide hallway? That hallway doesn't have to run the whole length of that basement either. How many houses are sold with an unfinished basement? So many. Such a waste.

[@BuildingWealthWithRealEstate]

What Jeff has pulled off is amazing!!

[@jeffreywhite958]

Thanks Chris for having me as the first guest! What a huge honor! I hope this video can help as many house hackers and investors as possible.

[@zyrasynowksy]

Let’s get him back again please! I’m so curious how is he doing now, and if he have any things he learned and changed.

[@steve3in142]

I’m in a 7 Bed room no common areas Just kitchen.

[@exquisitecaribbeanqueen7198]

Exactly so, so all these tips I know....So ill be doing that. Great video

[@Afrolatina_adventurer]

Love this, incredible to see in action. Definitely my goal to replicate this in NJ. One thing I noticed was househacks require you living in the home, I don't think he lives in any of his properties right? Also were all his tenants rent partially subsidized with the governmental program? Also with per room renting, screening is more important so would love to here more about how he got that part right. Thanks!

[@jeffreywhite958]

Hi Quiana! Thanks for watching! I live all my house hacks for one year, currently on #6, that's the only requirement. The Sectiom 8 long-term tenants on the bottom unit were being subsidized with rent from the bottom unit, and the rent by room tenants were not subsidized. Screening is my favorite thing to do, I have standards of 3x income to rent , 600+ Credit score, no felonies, bankruptcies or evictions. The big difference is I start with 2-4 month leases as a trial period for a new roommate tenant. If they are a good fit, I renew them for one year and stagger the leases so I don't have to fill all the rooms in one month

[@oleopathic]

@@jeffreywhite958 The no felonies filter wont fly in NJ. Look into this.

[@justinwayne445]

@@jeffreywhite958 Hey Jeff! What advice would you give someone who has a large amount of starting capital before getting into this, skip the small properties and just house hack a larger, more expensive one?

[@jeffreywhite958]

@@justinwayne445 Hey Justin! That's a great position to be in, I would target large single family houses with ADUs/Granny Flats/Mother-in-Law apartments/2nd houses on same lot. You would be surprised as to what is out there depending on where you are located. If gives you the best of both worlds and flexibility to do multiple strategies assuming you have good zoning to allow it. That way, you can live in a great location with privacy and get the benefits of house hacking, and you will be able to use whatever strategy you want - Airbnb, long-term rental or rent by room to maximize your rental income. That's why this video is a great example because I was able to live in the master bedroom with my wife, rent the spare rooms out, and also rent the bottom unit, so we were making money while living there and doing even better after moving out. Good luck man!

[@laurasamaniego5937]

Great tips! Thank you for sharing your knowledge and the house tours.

[@jeffreywhite958]

No problem, it is a huge honor to help out any fellow investor

[@laurasamaniego5937]

@@jeffreywhite958 Your tips are sooo helpful. Thanks!

[@ettyobz]

Good numbers but that 4million dollar debt plus how easy that equity can reduce scares me . I try to pay off or owe only 20% before buying another . Great job Jeff

[@jeffreywhite958]

Hi Etty, thanks for watching! My number one goal for any property is cash flow, so how much equity isn't the most important thing since I'm not trying to sell these properties anytime soon. Also, going forward, I want to maintain a portfolio equity position of 30% ideally to weather any downturn.

[@Mrs.WhiteLady]

Great job, love the energy, the breakdown and how consice this video is! Also, thanks for the shout out Chris!! 😊

[@BuildingWealthWithRealEstate]

Of course! :)

[@ramankainth2789]

Awesome video. I have a 1600 sqft townhouse 3bd 2.5 bath. I want to put as many tenants as I can in there. How do you deal with the bathroom situation with everybody?

[@jeffreywhite958]

Hi Raman, that's enough bathrooms for everyone since only two people have to share the full bathroom and they can always use the half bathroom. For me, I usually cap it at 3 people per bathroom, and I haven't had any issues. When I've been at 4 people (the tenant's girlfriend moved in), it has been a problem.

[@thejuiceup1138]

@@jeffreywhite958 Surprised you let the girlfriend move in...I'd have rules against that to not disrupt the flow of things.

[@FirehouseJunkRemoval]

Jeffrey White do you furnish the bedrooms as well? TIA

[@jeffreywhite958]

Hi Andrew, I don't furnish any bedrooms. The roommate tenants furnish their own bedrooms, and each of them get renter's insurance.

[@dr.petersonlorins2415]

Nicely done, Jeff!

[@eduardobilbao8220]

How was he able to house hack that quickly! Nowadays banks are requiring you to buy in a different city or doing a big property upgrade in order to actually lend you this close in time as a primary residence.

[@BuildingWealthWithRealEstate]

The rules for buying a new primary hasn't changed: Every year you can buy a new primary. Sooner if you have a life event (new job, marriage change, etc)

[@jeffreywhite958]

You can purchase a new primary residence every year with a little as 5% down payment. The only rule is that you have to live in it 365 days, and then on day 366, you can purchase another one. Discuss with a lender.

[@appolo08]

​@@jeffreywhite958 Does it have to be 5% down payment or can it be the 3.5% down payment using FHA?

[@dewholdingsllc1050]

Looks spartan for my sub market. I would be more interested in seeing the bedroom decor and level of finish. Same with bathrooms. That empty garage unit carpet was not acceptable. Carpet is really low budget flooring if you want to obtain top market rents. We have several temp housing folks in this sub market but they have a bit more to offer for close to the same rent/bed/month. Most use a 30 day guest house lease for sales tax reasons.

[@user-zk6fc3dw9e]

Go Chris and Jeff! I love this series. 👍

[@jeffreywhite958]

Thanks B!

[@Lefthandedscorpio]

How do you handle mail. Are they required to get a PO Box or share the mail box?

[@jeffreywhite958]

There was already two mailboxes unit A and unit B so it worked out great

[@PowerVictory]

🔥🔥🔥🔥🔥🔥great content

[@thomasloaiza9836]

Do the tenants furnish their own rooms or does he have them furnished prior like the living/dining room?

[@jeffreywhite958]

They furnish their own rooms, and we just furnish the common areas and kitchen

[@thomasloaiza9836]

Thank you Jeff! I own 1 STR and 2 LTR properties, definitely thinking ab pursuing this strategy on my next investment! What’s the max bedroom:bathroom ratio you’d do? I’m worried if I had 3 bedrooms to 1 bathroom that’d be too much.

[@jeffreywhite958]

​@@thomasloaiza9836 3 bedrooms to 1 bathroom is my max for RBR

[@majnoun-jeddaan]

He didn't say anything about the utilities and if the tenants split it or the landlord pays that!

[@BuildingWealthWithRealEstate]

Great question! Rent + Utilities. Most people charge 50-100/flat a month for utilities + internet. Some do a direct bill back, but that's a PIA.

[@jeffreywhite958]

Utilities are included in rent for the tenants. It is very difficult to bill back utility bills since how do you quantify how many showers someone takes? How many times did someone use the gas stove? Thus, it is smart to just include it in gross rents to keep it simple. I usually take a average of 12-24 months of the prior utility bills (ask the utility company), and get a rough average, and then try to spread it out over the tenants, so they are covering utilities mostly, but it isn't a profit center.

[@majnoun-jeddaan]

@@jeffreywhite958 which items in expenses breakdown covered the utilities please? That was unclear on the video and numbers didn't add up to me

[@laurenvalinoti]

There’s no better way than house hacking to acquire properties FAST!!

[@Mrs.WhiteLady]

That's right! ☝☝

[@jeffreywhite958]

Thanks Lauren! Totally agree

[@vansh2001]

What happens when the battery dies?

[@Mrs.WhiteLady]

You replace them just like anything else that requires batteries. Once a year is usually when they start to die

[@bcsbbq7829]

If u have a family (wife, 2 kids) how would I house hack without having to live in it? Could I legally do it and still be able to qualify for those specific tenants?

[@biggerpockets]

I think you're going to love our episode coming out on Monday: kzbin.info/www/bejne/aXu6oYGwi5KLsMk 👀

[@beneinspahr5408]

@@biggerpockets Thank you for the shout out!

[@jamescc2010]

I am wondering how much tenant management & stress hour/month it would take dealing with so many people?

[@jeffreywhite958]

About 2-3 hours per month with good systems in place. At this house in particular, I have two tenants there that have been there 3+ years, the other two tenants 1+ years, and the Sectiom 8 tenant 3+ years . Rent by room is a great strategy, and if you have a good place to live with solid amenities, it will be easy to retain and attract high quality tenants.

[@jessicaholland6796]

I have one house with very similar setup, some months zero time and energy - maybe an hour for doing bill pay, coordinating with yard guy. Other months we have maintainence (leaky sink last month) and takes 2-3 hours as we self manage and do repairs. Not bad really.

[@mariegrabo]

What happens if they won’t leave?

[@jeffreywhite958]

What do you mean? Everyone is on a separate lease

[@nathanbrinker1149]

​i currently have a guy looking for my first deal "triplex or quad plex". will be my first house and i will house hack

[@BuildingWealthWithRealEstate]

nice! Be mindful of the FHA self sufficiency test if he's using an FHA Loan. It blows up a lot of deals!

[@ripvanwinkle3432]

@@myratsalad it's been a while since I've looked at that but I'm fairly sure rent is counted to some degree.

[@infovidasupps8640]

What about a dorm size fridge in each bedroom and none in the kitchen?

[@jeffreywhite958]

You can also do that but now you have 4 fridges to worry about if one breaks you are on the hook vs. only one large fridge divided up in shelves so each tenant knows there space.

[@koby2995]

An small fridge in each room is much better, leave big one for something else

[@TXetc]

I do both. Big fridge in the kitchen and decent sized mini fridges in the guest rooms. Whatever the one on sale at Walmart for $157 now is the one I use. That’s plenty of space for 1 person, more than they would have if we all shared a fridge. If they have bigger items of course they can store them in the kitchen fridge. I also put a microwave in the guest rooms as well. Having a nice TV/great bed etc and everything they want keeps them happy and to themselves really.

[@ed1pk]

So would you convert all common spaces to bedrooms leaving no common area like a living room if you could? Also where do you list your units normally? Craigslist?

[@jeffreywhite958]

Nope, I don't convert all the common areas, just the low hanging fruit ones (ie. additions, den/offices and dining rooms). I would still leave a living room. I list them on Facebook Marketplace and Roomies to find the best tenants. I don't use Craigslist in my market, too many scammers.

[@amymae8627]

Love the furniture tip!!! 😃

[@minghiy]

Curious.. do you ask the individual renters to get their own renter's insurance? I'm just wondering conflicts between strangers living together and if one accuses another of stealing or slipping and falling down on the property etc cases turning into a lawsuit. Thanks!

[@jeffreywhite958]

Hi Mahesh! Yes, I have each renter get renter's insurance. Also, the electronic locks on each bedroom door provides good security for theft since the only ones that know the code are myself and the tenant.

[@minghiy]

@@jeffreywhite958 Awesome, thanks for the reply Jeff. One more question if you don’t mind - do you put each rental property into it’s own LLC and have them sign a lease with the LLC or are you signing the lease yourself.

[@jeffreywhite958]

​@@minghiy Hi Mahesh, since I'm living in each house hack property, I purchase them under my name and not an LLC to get the best interest rates since it is a residential loan. Even after I move out, I leave my property in my personal name since there aren't any benefits to put it in a LLC from a tax or liability point of view for me. I have them sign a lease with myself.

[@minghiy]

@@jeffreywhite958 Thanks Jeff for your replies! That makes sense and plus you’re keeping things simple as well.

[@jeffreywhite958]

@@minghiy Also, I have a $2 million umbrella policy on top of my regular insurance to protect me.

[@SouthsideSTA]

Uncomfortably awesome 😂

[@mrtravelguy7867]

I purchased my first piece of real estate Duplex 2/1 Spanish style property 4 car garage!! Los Angeles Ca PP $670k $80k rehab Comps $930k Should I flip, since it’s my 1st investment? Or keep as rental? I put $100k down with hard money

[@jeffreywhite958]

Congrats! I don't know your market, but based on that information, it really depends on your goals. After you refinance it, do you want cash flow? Appreciation? Both? Every investor's goals are different.

[@theatxrealestateguy8983]

Sell it! Take your money and run.... kidding, it depends on your situation, I would make sure it’s along term investment and consult ur tax person

[@mrtravelguy7867]

Thank you for the advice

[@MarioRuscovici]

Interesting but one wonders what he looks for in a potential purchase?

[@tommyboy7427]

I do the same thing, but I have just two so far. I look for number of bedrooms vs purchase price. Also bathrooms, parking, and ability to convert a common area into extra bedrooms. Also, look for something turnkey if you aren't able to renovate it cheaply so that someone would want to live there. I look for 4-6 bedroom properties that are not too luxurious. Low outdoor maintenance is a plus.

[@BatistaInvests]

You scared, bro? Double down.

[@Y2DMC]

Doing this rn

[@Mrs.WhiteLady]

👍 👍 👍 👍

[@ArthurGtv]

Wouldn’t he get more money doing rent by the room downstairs too? What is the benefit of section 8?

[@jeffreywhite958]

I wanted to have two strategies on this property and not rely on one particular strategy, and Section 8 pays $1,941 per month for the bottom unit, if I did rent by room downstairs, it would be $750 x 3 = $2,250 per month plus the cost of furnishing the common areas but with more vacancy compared to Section 8. Also, I haven't raised the rent in 1.5 years, so if I raised it closer to market for Section 8, it would actually be $2,250-$2,350 per month based on new HUD fair market rents, so rent by room works great when you are upstairs and have more rooms to rent you can attract higher prices. Also Section 8's benefits are awesome, the tenant pays 5-25% of the total rent, and the housing authority covers the rest. When the tenant lost their job during covid, the housing authority covered 100% till the tenant found something else, so it is nice to know that you are covered.

[@ArthurGtv]

Thank you for the reply, great info!

[@fzigunov]

Intro is too long!!!

[@FreshAirRules]

The first view of the house shows this guy is NOT optimizing the space. Because it's not being rented to an individual. Digital locks are smart....great choice. Leases: Why have one at all? If you don't like someone get rid of them. Now if you're in an area with strong tenant right, the lease is an excellent solution for that. That's probably the case here.

[@dariosoto6919]

Dislike no expensive …… , interest rate , water light yard

[@ActionZ]

I love house hacking and brrr method of real estate. However it really only works well if you live in rural areas with houses costing under half a million. It's not possible in major cities where 30 year old houses are a mil+.

[@jasontoheal]

This man just admitted publicly that he deliberately furnishes his properties with uncomfortable furniture. What is wrong with people? Like “hey guys here’s a tip on how to deliberately deceive people”

[@jeffreywhite958]

Not trying to deceive, it is more hotel lobby furniture, the furniture is designed to be comfortable but not too comfortable, so people don't take advantage of the common areas

[@jasontoheal]

​@@jeffreywhite958 cool. You might want to look up the definition of the word deceive. You're basically re-iterating that you don't want people to use the thing they think they will be able to use. You are the kind of person who gives everyone in real estate a bad name.

[@Ekryth1]

Wtf, have shitty couches so they don't use them.. lmfao.

[@Mrs.WhiteLady]

More like couches a person won't plop on for hours. Pleasing to the eye.. not the tush 💁‍♀️

[@Ekryth1]

@@Mrs.WhiteLady yea its just funny hearing him say it. He might as well turn the living room into another room if he's that money oriented.

[@nayelilopez1066]

I actually took a fat nap on that couch lmaoo…don’t tell Jeff🏃🏽‍♀️🏃🏽‍♀️

[@phil1954]

Owner pays the utilities in rent by the room, so $1k is now $600 profit. Is it really worth it? Many will say no

[@jeffreywhite958]

Hi Phil, it depends on your goals. I like to renting to long-term tenants as well that put the utilities in their name, but I also like to mix strategies so I'm not reliant on one type of tenant. Also, with renting those four rooms, I'm dividing up the rent four ways basically, and the likelihood of all tenants losing their jobs and unable to afford the rent is less than if I rented out the whole unit to one tenant. So, there are pros and cons to every strategy, and in my market, rent by room is in huge demand, so I'm choose the cream of the crop type of tenants. Also, on this property in particular I have two tenants that have been there 3+ years, and the other two 1.5 years, so it isn't necessarily more work than managing one tenant.

[@oshkoshbegone]

you mean become a slumlord in a more than likely illegal housing setup. I see tons of these rent by the room style places go up and they are the lowest end of housing you want to get into, ya you can make okay money but the tenants you get are something else... Buy uncomfortable furniture on purpose?? i cant believe you would ever put this on videotape.

[@kevincauto8080]

Depends on the area. There are some high-end rent by the room setups. I have two in a really nice suburb that draws high-quality young professionals. All my tenants are 750+ credit scores, some have 6-figure jobs if you can believe it.

[@ripvanwinkle3432]

Op sounds like a boomer...

[@luisabolanos9106]

You obviously haven't lived with roommates before. People will plop on the couch,take over the T.V etc... they're renting a room, not the entire house.

[@oshkoshbegone]

@@luisabolanos9106 I've had tons of roommates lol

[@oshkoshbegone]

@@ripvanwinkle3432 you sound like a gen x'r that's glued to tik tok. Renting by the room is not worth the effort imo

[@michaelharrington7229]

It’s illegal- occupancy standards

[@jeffreywhite958]

Again, that is a "it depends" answer since every city and county has different unrelated party rules. This probably still meets it even with 5 total unrelated parties.

[@patrickknapp8539]

Wtf no shelves in the cabinets lol countertop height was embarrassing, talking about having uncomfortable furniture so people don’t enjoy it makes him sound like an AHole. I have 10 properties so I’m not some renter

[@jeffreywhite958]

Hi Patrick, thanks for watching. 1) There are plenty of shelves in the kitchen cabinets, check out 5:20. 2) Haha, the countertop height is fine, it was me who purchased too small of barstool chairs, it was just a funny moment. 3) I didn't mean for it to come off harsh, the common areas are utilitarian, it is meant for people to use and enjoy but not sleep on or take over the entire space by including a comfy couch, TV, sound bars, etc...

[@jasontoheal]

Absolutely. What a completely unethical landlord. People like this are the reason landlords get a bad reputation. This guy needs to be made infamous.

[@neilaleksandrov2655]

make their living spaces uncomfortable ***creepy smile***... overcharge people for living in cramped space with one fridge shelf... slumlord in the making... LOL

[@BuildingWealthWithRealEstate]

Please don't insinuate that he is a slum lord. That is completely false. Jeff is a great landlord and puts out good properties. Definitely above the average Room by Room or similar class long-term rental.

[@neilaleksandrov2655]

@@BuildingWealthWithRealEstate i did not insinuate anything.. I MEANT it. Any rational person can see how creepy and wrong this whole thing is. Excluding people who are too blinded by greed to see wrong and right...

[@BuildingWealthWithRealEstate]

@@neilaleksandrov2655 I'm guessing you've never seen real slumlords. Good luck!

[@neilaleksandrov2655]

@@BuildingWealthWithRealEstate nor will I since they are getting rarer and rarer these days.

[@lpslancelot05]

@@neilaleksandrov2655 What are you going on about? How is what he doing wrong? If people don't want to live there then go find somewhere else. He's providing a great place to live for a small amount of money. This is Denver we're talking about here. Pull up the rents for a 1 bedroom bro!