Watch This BEFORE You Turn Your House Into a Rental Property

this is the Bigger Pockets podcast show 907 what's going on everyone this is David Green your host of the Bigger Pockets real estate podcast the show where we arv you with the information that you need to start building long-term wealth through real estate today and today we have a seeing Green episode if you're watching on YouTube you see the green light behind me and you know that that only means one thing I'm filming this in front of a traffic stop at an intersection just kidding it means that we are doing seeing green and I brought some help we start off the show with James danard who helps answer a question for me from one of the bigger pocket staff members actually which he does from his yacht and then James realized in the middle of the interview that he did not want to be on the interview he wanted to be yachting around so I brought in Rob little yachty abas solo to sort of support me with this and he's here to take over the second portion in today's show we get into some really good stuff such as why expensive markets tend to appreciate more than cheaper markets what to do do about turning your primary property into a rental if it doesn't cash flow when your house hacking strategy doesn't go according to plan when you can count expenses for a rental property and when you can't and more importantly what you have to do to make it eligible to count those expenses and more up first we've got a question from Noah bacon in Colorado so Rob why don't you go check out the vacancy on our Scott sale property and make sure we're getting that sucker filled and then be back licky split okay but before I do if anyone here is listen and you want to submit a question remember you can always go over to biggerpockets.com David to submit your questions for the next episode of seeing green Noah bacon the Bigger Pockets Community manager Noah representing BP what you got for us today hey guys thank you both for uh taking the time to answer some of my questions and it's really great to to hang out with you guys here today um so I started a house hacking in 20121 in Colorado Springs and it performed really well when I was house hacking and since I moved out um it hasn't really performed all that well um on paper everything was great like was going to cash flow about3 $400 when I moved out um turns out went through an eviction rental rate dropped a little bit now that it's uh not in the summertime and insurance rates have like really skyrocketed here in Colorado um my HOA fees went up 100% this year Alone um so just immediately from 2021 on paper you know everything looks great now we're here in 2024 um breaking even so it's not like it's it's a terrible asset at this point but it's it's breaking even and I'm seeing the next two to three years on the horizon and I'm like do I take the equity in the property and and deploy it elsewhere or do I kind of go along this path and potentially be at a negative cash flow in two to three years and and let the equity build since it's at a 3% rate um I know a lot of people are in this great problem to have with a 3% rate and Equity Building but the the the cash flow monthly is going to start to go on the downside so one when is it time do you guys think to scale to start to think about different things should I ride this out I guess what what have you guys been hearing about about things like this I'm going to turn over to James before I do I'm going to give you my two cents on why I think this is happening because more people than you think Noah are in the exact same position I saw 2023 was like the year of this right my opinion of why I think this is happening is we have really bad inflation we printed a whole bunch of money inflation doesn't come right away it's like if you have an earthquake in the middle of the ocean it takes a while for that wave to build and actually hit the shore but we're seeing it continually go up and up and up and a lot of people measure inflation through the CPI which I don't like because those things can be manipulated but if you actually just look at your life how much are you paying for stake at the grocery store how much do milk cost how much do gas cost it's really high and I'm seeing like homeowners insurance skyrocketing and no one's talking about it I mean it's not like it went up 20% it's like it's doubling or tripling on some of these properties in one moment or another one like you said the HOA fees it's like oh it was $ 150 now they're coming back and saying $400 okay so rents can only go so high because rents are largely and Loosely based on wage increases well as inflation is making everything more expensive that doesn't mean that companies are just paying their employees more they're actually kind of getting away with giving people pay cuts if you keep their wage the same but everything becomes more expensive so HOAs are going because of inflation insurance is going up because of inflation I bet the next thing you're going to see is municipalities start increasing property taxes because of inflation having it there yet uh rents are not going up because people are kind of already tapped out with what they can afford and it's created this odd squeeze that I've never seen in real estate where rents are not going up with the same degree as the cost of goods and services because people couldn't afford to pay them you just you'd have tenants to say well I can't make my payment if you raise my rent because I'm already not getting to raise at work and everything else is becoming more expensive so James what do you think you see something similar or you have a different take on it no I mean the the rising costs are are roading cash flow uh Pro insurance is a huge expense for us on as landlords also as construction company I mean our our Builder risk policies it's expensive and what we all have to do is our performers the great thing about our performance last two years is we would blow them up with way more income coming in uh we did a lot better than we thought now what's happening is the expenses are starting to catch up and honestly people are starting to feel the real cash flow of real estate and um and a lot of investors are feeling this right now because as you buy real estate in your newer in real estate and I did the same thing it's like you buy and you get a couple hundred dollars a month in cash flow and then the economy starts leveling out or something bad happens you have to maybe pay for that asset right because these are investments Investments go up and down and and what I would do for any investor and Noah especially you is going what is your long-term goal that you know when you're thinking about what to do with that property you really need to know what is your onee what is your threeyear what is your 5-year goal and by doing that and listing down where you want to be with your passive income and your cash flow that's going to kind of tell you the direction you you want to go but personally for me everything's tradable and I can always increase my cash flow position and the great thing is you made a very smart investment and you've made $100,000 in equity now you want to figure out what to do with that because Equity is only good if you utilize it and you know it's just sitting there it's not even a real thing and at the end of the day I still factor that into my return so every year I run return on equity on every one of my my properties is my return still meeting what my expectations to be or what can I do with that equity and trade it out because the great thing is you made that decision you have $100,000 in gunpowder at that point you're issue is you don't want to pay for your property every month which is understandable no one really does if I would trade that for another property that has a lot higher cash flow you have 100 Grand you don't need to add into any other property that's your down payment and you can take that three to $400 a month or even break even and you can three to 4X that by making the right trade and getting maybe some more doors trading into a little bit cheaper Market but it has to be your goals I want cash flow if you want growth I would take that property I would 10 31 exchange it into a value ad property so I can double My Equity position right if I'm buying it below Market improving with rehab then all of a sudden my $100,000 in gunpowder might turn into 200,000 and then you're talking about trading that for some serious cash flow but write down those goals it's going to tell you your plan of action but even if you have a 3% rate who cares it doesn't matter what your rate is if you're not making money I would rather pay 10% and make money than 3% and break even and um I don't really capital is just a cost of the deal and if the deal is worth it pay whatever rate it is and uh you know so I would just say write down your goals where do you want to be cash flow Equity do you want to expedite the process go value ad if you want steady cash flow trade into a lower Market get more doors and then if you you can weather storms more because your cash flow is greater what do you think in Noah yeah that that's really well said and I think I'm at a point too where it's like you know one property that I have if it goes wrong like we were just talking about James it's like two months of paying two mortgages now how can I potentially mitigate that risk and I think like you're saying it's time to stop looking at that 3% and the equity build over you know the 30 years of that 3% rate I've been hanging on to that since the day I bought the property and it's like it's it's time to let that that fantasy and reality go and start to scale and it's just now that the environment's different you know I wasn't expecting expenses to go so much more rapidly than what income was I'm just like okay New Year really got to think about these things so I I really appreciate that because I I really do think I need to start looking into potentially a different Market um because I've seen on the forums places that I'm in Colorado specifically with natural disasters are having massive increases on insurance um so I think I just really need to start looking more macally instead of my my own localized market now and maybe get ahead of what the competition is going to be doing so my guess would be in the next five years or so more people are going to have a similar experience with their HOA jacked up rates a proportionately very high amount Insurance went up because of natural disasters and then area at a disproportionate amount uh some of the other like costs that you can't control are going to go up more than what they did in the past so it's not just HOA fees but let's say you own a condo and it needs to have the roof replac well roofs are like three times more expensive than they were you know five years ago or so because like James just said the cost of construction is super high and the wages that they're paying these employees are high and so those special assessments used to be like kind of a mosquito bite and now they're a dragon flame it's killing you right so if you can you can avoid this by looking for properties that don't have the uh the danger of having these costs go up single family homes a set of condos properties that are not in an HOA but they're still in a decent area and even if they don't cash flow right away if you pick the right location over the next 5 years the rents are going to go up in those areas more than the others and the values are going to go up in those areas more than the others because as other investors and homeowners start to realize how bad it is to be in an ho if you can't control the cost going up or an area where insurance is really high they're going to move into the areas that I think you should be looking for right now so no you house hacked this house correct like you lived in it for a certain amount of time um you know and if you lived in that property for two years and talk to your accountant you can take that home the the homeowner exemption and and your $100,000 could be completely taxfree because if you live there for 2 years you're going to qualify up for up to $250,000 of tax deferment at that point and actually after one year your 100,000 might be totally taxfree and if you look at that right your 3% rate yeah you're saving something right now because you're going to have to pay six and a half 7% pretty solid but you're going to make $100,000 with no tax on that and then what you can do is you can take that portion of your taxes go reinvest that into your new multi you might be able buy two properties and you don't have to defer it you know you have a clean tax basis you're saving on 100 grand you're save at least 20 grand in taxes you're putting that back in your property you can roll it into new property to then to increase your portfolio so you know utilize the the tax credits to if you got to trade up your rate at least you're getting a big benefit on the taxes with my first property I only lived there for a year and then I purchased my second house hack 12 months after so I'm coming up on two years on the house hack I'm currently living in and it's also townhouse in an HOA and I'm just like expecting the same rainy day that I had on on the rental property that I turned into so I'm like probably when it comes to two years at the property I'm living in currently I'll think about that de deploy the capital and take the tax exemption but with the property that I lived in previously I only had one year so I'm not going to be able to hit that that tax exemption unfortunately yeah but you can take a portion of it I would talk to your your accountant on it and and just see and then that might tell you you know so again going back to your goals like one year three year five year you know you might be really comfortable in your house that you're are now and you want to stay there and that's perfectly normal right you got a low rate you want to stay there for a long time that meets your goals or you don't really care like for me I'll trade any house I don't I have no emotional attachments for housing anymore then I would utilize both and then you can go maybe pick up a new primary on a value ad start creating that Equity again for another taxfree gain take the portion and go buy one or two more rentals and get better cash flow out of those and you're going to really over a three-year period you're going to 2x your return right now because you're going to pick up the value at on your your property there will be tax over two years and then if you're increasing your cash flow it's helping with your monthly expenses and if you buy on value ad you can increase that Equity even further and so it's that it's that domino effect right every time you make a trade pick up another trade I never trade like for like I want to improve my Equity position every time because the equity position and the equity is how we really get Financial Freedom it doesn't have to be cash flow or equity which is how the argument often gets phrased I think it should be cash flow after Equity so if you think about how much control you have over cash flow it's very little you can't control what rents are they're going to be what they are you could try to control expenses but there's only so much you could do your mortgage isn't going away your taxes aren't going away and when the insurance goes up or the HOA go up you don't have a choice like the only expenses you really have any measure of influence over are vacancy maybe how much you pay for maintenance if you can figure out how to get some kind of handyman to be good and like even capex you can't really control right so it's incredibly difficult to build cash flow because you don't have as much control over it but Equity you have a lot of control over you control how much you pay for the property you control what area you buy in and where they're going to be going up you control what value ad you do to the property you control the whole project if you pay attention to it and how cheap the expenses are kept for the rehab so if you have more control over something you are more likely to be successful in it my advice for most Real Estate Investors especially when they're younger is not to just race to as and quit their job and then say hey I made it cuz those people end up getting back into the same Rat Race that they claim they quit unless they sell courses and they they live off of that and pretend like they're living off of the rent my advice is you snowball Equity like what James said every deal you pick up you buy it under market value you add value to it you sell it you go into another one and you build up this snowball and then near the end you convert all of that Equity that you've built into Cash flowing property which is going to give you a lot more cash flow than if you take the approach of of I'm going to keep acquiring your properties at $200 a month if we lived to be 900 years old like Methuselah that would be a good strategy unfortunately life is too short for that to work out I thinking about this with a small mind until today and I I think it's it's time to really start uh expanding the portfolio a little bit more and and see what other options are out there but I can't thank you guys enough for for your time today and helping me think about uh where my portfolio head into the next next year all right Noah thanks for coming on and I hope you're enjoying the shared conversation that we have so far and thank you for spending your time with me make sure that you like comment and subscribe to this video let us know in the comments what you think in this segment of the show I like to take questions from the forums and answer those since it's an awesome Forum on bigger poo.com we also read some of the YouTube comments or address any of the reviews that were left where you can leave a review where you listen to podcast so go leave us a review and let's talk about what y'all been saying our first question comes right out of the forums and it was a topic that was labeled WTF is wrong with investors these days Rob this is some good stuff so uh basically this was from Angelo Romero and he has a turnkey company that also helps manage properties in Toledo Ohio and he has people that reach out to him and say hey I don't want to buy any of your product but I was hoping that you could help me to find a deal also do you have any contractor lender or agent referrals oh and by the way I'd love to have you manage properties that I bought with somebody else but not from your company and he was a little peeved about this and he says it seems to me that everyone wants something for nothing nowadays and nobody is willing to put in the work or pay the margin for the person who did put in the work now I can relate to this a little bit because people come to me as an agent and they say hey can can you help me get an off-market deal or do you have any off-market deals and agents only get paid when the deal is indeed on the market so it doesn't really make sense to ask a real estate agent to represent you but then they don't get paid so I I'm in this situation all the time I just kind of wanted to get your two cents before we dive into this rout well first of all he caps this one which says folks want to own a monkey they want to play with the monkey but not carry the monkey or clean its s word when it when it does one he that's pretty funny well first of all let me ask you when you're getting an off-market deal I assumed if you're brokering that deal there's still some kind of finders fee right you actually can't do that so when you're a real estate agent and you're a licensed person if somebody wants to help put something together that's market like wholesale almost every brokerage is going to tell you that you can't do that because when you're licensed you have a fiduciary duty to the people you're working with and they expect that and it's a massive liability to help somebody that when you're not covered by your license or the insurance that goes under your license yeah so I guess the problem here is that people are asking for quite a bit uh there's a little bit of entitlement in that they expect you to do a lot of things for them but they're not providing the value upfront so I'd probably try to go out of my way and see how I can provide value and we're not trying to sit here and be negative on the show but I do think that there's a lot of of people that are in the BP world that just don't understand that the podcast is free and the blogs are free and the Forum is free and the books are cheap there's so many things that are free but the people that make their living from this that are on here sharing free advice that doesn't mean that they're going to work for free one of the comments in the forums here said I guess we've gone from how do I invest with no or low money down to how do I get other people to do the work for me and I benefit from the deal without paying them and we're only bringing this up because there's a very good chance that people don't realize that's how they're coming across I don't think anyone is conscious of the fact that when you go to a turnkey provider who's basically like digging in the streets trying to find that deal and and putting blood and sweat and tears into getting it and then you say hey can you just give me one of those so that I don't have to do the work that it's going to be offensive to them provide value in a way that's like a clear need that someone someone has and try to make a win-win out the gate instead of saying hey come in and teach me your ways and I'll work for you that's really hard because then you have to kind of show someone how to do that thing and that's work for us it's very different to then come in and say hey the thing that I am a master at is communication I will come in and handle all of your communication with your vendors with your guest with your contractors everything that's what I'm good at in return I'd like for you to do X for me and then there's an actual value exchange there that doesn't put so much pressure on the other person to I don't know teach and mentor and provide provide the value I want this to be an insightful question I just this guy is right what's in it for me and you have to understand that you have to try to answer what's in it for them if there's no actual value or any kind of monetary compensation then you really have to figure out how you can lead with value and make it a no-brainer a win-win for them to actually help you otherwise you know as nice as many many people are you'll just never get the time of day asking for something without offering something very clearly Val valuable in return and then you'll be frustrated because you keep reaching out to people asking for help and they kind of blow you off or they just ignore you or they very politely uh misdirect what you just said and you're like man how come no one's out here to help me well that's what we're here to tell you this is why they're not helping you I tend to look at real estate like uh you got a bone with a lot of meat on it and that meat is equity so there's some seller out there that has a property and everyone's trying to find how they can get it under contract for less than what it would sell for on the open market it's after repair value well if you go find that seller yourself it's a lot of work it's a lot of rejection it's a lot of pain it's a lot of risk but you get all of that Equity now what people do in the real estate space is they slowly start to slice off chunks of that Equity to pay themsel to help you with that process so just think about what are the things I don't want to do and how am I willing to pay someone and who do I want to pay for those things as long as your expectation isn't I want all the meat and I don't want to have to pay somebody else for it and I don't want to do the work myself once you find your lane that's where you'll get good at that lane you'll build up some experience and you start building the momentum acquiring the properties and you'll get to be like Rob abas solo here and show up wearing a G-Shock watch with a printed t and a uh perfectly teased qua talking to the masses and by the way on top of the Forum just being a really great place to get answers to your questions it's also a very therapeutic place to go and find other people that might be able to relate to your to to your personal situation so definitely everyone take advantage of the Bigger Pockets forums it's free and it's a very easy way to level up all right moving on our next review comes from Apple podcast this one is labeled inspirational I've been listening to Bigger Pockets for years and they offer stories different ideas on how to approach a journey to get to a real estate investment level I would say that you get what you give as far as my personal investment on time and effort that you put into finding deals and resources I found three and I found Bigger Pockets played a role in that from Dave Scruff on the Apple podcast Apple thank you for the five star review Dave people like you keep this episode reaching the masses all right we love your guys' engagement and we appreciate you listening to us please continue to like comment and subscribe on our YouTube page as well as leaving us your five star review wherever you listen to podcast Apple podcast Spotify Stitcher whatever it is all right let's get into our next question this comes from Joe ademic in Boston hi David thanks for all the great content you've been producing I found it really educational and I've learned a ton my name is Joe and I located in the Boston area and I'm just getting into real estate investing and looking for a house hack soon so my question is really a couple episodes ago you kind of mentioned that a higher priced area like San Francisco will appreciate more than a lower priced area and I was kind of curious on the logic behind that CU I feel like a higher priced area the prices are so high that they won't be able to grow as much and I'm just kind of curious if you're suggesting that will the gap between like a higher priced area and a lower PRC area would just widen kind of thing in the future uh and I guess any more tips on how to house hack your first property and thank you solid question basically he wants to know what's the logic as to why we would say a higher priced area will appreciate more what do you think yeah that's a great question I mean I love this stuff we get to talk about the fundamentals of real estate and personally I think you and I ra put the fund in fundamentals everybody is boring but we make it cool I put the mental brv all right so the reason that they are priced higher in the first place is because there is more demand than Supply so think about it like people have to be willing and able to pay the price of a home or rent for that matter same goes for stor from rentals right how much are they going to pay per night they have to be willing and able willingness is a function of supply and demand is there other options well I'm not willing to pay you 500 bucks a night if I can get something similar for 200 bucks a night I'm not not willing to pay $500,000 for that house if someone else is selling one for 300,000 pretty sensible now the other part is able if wages have not increased in the area even if someone was willing to pay that price for the house they're just not able to the same goes for if they were willing to pay you that much for their Airbnb but the economy is really bad or they don't make enough money then they're just not able to so people have to have both the areas with the highest price homes have people that are willing and able to pay that price and then you just let the free market do what it does so he is saying why did those areas appreciate more it's because the people that have the money that are willing to pay for the homes are always going to drive the prices up more than the people that do not have the money or are not willing to pay for it does that make sense it does let me ask you this because just from a basic math fundamental question if the average appreciation on a city is let's say 3% well that's going to compound faster on a $800,000 median price point than let's say a $200,000 median price point so just from the sheer value of a property the more expensive it is the greater that appreciation ends up being at an average appreciation rate of whatever the national average is right yeah that's a great point if a if a $800,000 house goes up by 3% that's 24,000 if a $2,000 house goes up by 3% that's 6,000 and you compound that over five years right the cheap house went up by 30 ground the other one was like $120,000 or so so yeah I think there's a lot more to to that to all of this statement with the whole like yeah you know a more expensive house appreciates more I think all the economic factors that you talked about before I said that all play into it as well but yeah typically the more expensive a home is the greater that appreciation is just in the way that compounding appreciation works all right thank you Joe hope we helped you there and you didn't ask this question but I'll just throw this in for everybody listening here when you're looking at rental properties that you want to cash flow you will typically be looking at the $200,000 houses that Rob described CRI so the lower price points tend to make better rental properties because the price to R ratio is more favorable on cheaper houses once you get into more expensive homes they get further and further away from the 1% rule as they go up in price because there are less tenants that want to rent a million dooll house than there are that want to rent a $2,000 house yeah bonus bonus uh answer here because he did ask for house hacking tip I'm just going to say this house hacking is great I would say if you can expect your expectations to not necessarily have to be to offset your entire mortgage payment with the house hack then you'll have way more options on the table too many times people are trying to make money on a house hack or have no mortgage at all as a result to all the money that they make from renting out rooms it doesn't have to be that I think paying half of your mortgage through a house hack is a perfectly beautiful way to enter that game all right and our next question comes from Joseph chavier in North Carolina hello Coach green my fiance and I are 23 years old and purchased our first primary residence about 6 months ago with an FHA loan our plan was to save money to purchase another primary residence in 2 years we underestimated ourselves drastically and have saved more in the past 6 months than we thought we could in 2 years way to go Joe the only problem with this is that the rental values of our current home has not gone up enough and we would be breaking even or even losing money if we include the vacancy rates in the maintenance we have a long-term mindset and are thinking about retirement while cash would be great we're more concerned about setting ourselves up for success in 10 20 or even 40 years from now my question is should we stay put and keep saving and wait for rents to go up eat the $200 loss and purchase another primary residence purchase another property as an investment property or something else that we aren't thinking of yeah this one seems right in your wheelhouse I mean first of all congrats on saving more in six months than you thought you could in two years that's amazing I've never heard anyone say that before so that's that's a really really great thing as to whether you should lose money or not we've done episodes on this on if the appreciation will ultimately make up for it my question back to them would be like are there ways to increase rents like are there is there forced appreciation or forced Equity play could they convert a basement or a garage into an extra room is there something they can do to try to get their rents to catch up with market value I would probably explore that route first and try to maximize the income on one property before going out and buying another investment property great point there I think the the problem is he was saying hey we plan to leave our house and get the next one but rents didn't go up enough that it would cash flow if we left it so is it okay to buy our second house if the first one isn't cash flowing like everybody talks about so this is a good problem to have frankly because you're going to have some Equity there if you if you don't want to lose that cash flow and you can't do what Rob said which is Bump the rents up somewhere else or add another unit to it or use it as a short-term rental or whatever options that you have there you can just sell it sell it and take the equity out and put it into the next one if you don't want to sell it because you think it's going to keep going up in value you well then hey keep it and lose a little bit of money there because you're gaining more Equity than what you're losing in the cash flow that's why you wanted to keep it and if you don't like either of those options you could just keep saving money and staying where you are and delaying finding the next property but you're not in a rush to move and that's what I love about this you can really look for the best possible house hack to buy for your next deal and if the next one is going to save you even more money a month than this one cuz it's so good maybe it has a lot more bedrooms or the rents are a lot higher for different reasons well then if you're losing a little bit when you move out of this one that's covered by the savings that you're getting of the next one so it's still a Net game yeah I would you know I'm very anti- losing cash flow on a rental uh in general and if we know that you're going to lose money on this like if you can't force appreciation Force Equity all that stuff and and increase your rents I think there's absolutely nothing wrong with selling it taking the money that you make and putting it into a new primary and then just Build Your Nest Egg of equity and one one day that Equity will be great you know you'll be able to retire on that Equity if you keep it until you retire all right our next question comes from Taylor white in Atlanta we're moving our primary residence to another primary residence and we will keep and rent out our previous home at what point can we start counting expenses against the revenue that the rental will bring do we need to wait until closing on our new home before buying things for the rental do we have to wait until the rental is available for rent before we can expense if so when does it technically become available for rent thanks for all you do for the BP Community my thought would be the minute you move out of it you call it a rental property and it's available for rent you just haven't advertised it yet because it's not like pretty but it's still a rental when you move out of it uh but we'll just have to clarify that they need to verify that with a CPA so I basically want to know if they list their property on the first but they don't actually get it rented as a long-term rental till the 15th can they start marking expenses on the first of that month month now that sounds like a like a tax question and you should always talk to your CPA for these types of things but I happen to be friends with the best CPA in the world Matt Bond trer so let me give him a call really fast yes they will be able to take those expenses but it'll just be capitalized either to the cost of the property or they will be able to just take those as expenses against the income it's just you can't start to deduct those expenses at least in that year until that property is placed in service so the fact that they're we're really talking about a twoe lag that's totally fine but yes they need to end up getting it placed into service which is actually if it's a long-term rental just has to be available rent if it's a short-term rental they actually have to get it rented so that's the question when is it actually available for rent does it have to be advertised on like websites like Craig yeah it's a long-term rental once they start to advertise it and seek tenants all right thank you very much you heard it here first everybody Su Matt Boner thanks man okay so we just talked to to Matt bontreger over at true books he says that it just has to be available for rent and that means that the moment you list it on a website like Craigslist or whatever that would count as being available for rent so there you have it so there you go put your property up for rent as soon as possible if you don't have pictures ready well then just don't put those in the Craigslist ad and just describe the property and then collect the emails of the people that are interested in it and then when it is ready to be shown that's when you can arrange for the showing and then when you get the pictures and they're all nice and pretty you can uplo those to the craigsl stat and make sure you verify this with the CPA just make sure this is all up and proper wait one one noteworthy thing here though he did say that it's different between a long-term rental and a short-term rental so if it's a long-term rental it's just has to be like placed into it just has to be made available so say on Craigslist if it's a short-term rental it actually has to be rented for that to start counting so there is a small difference there depending on which route you take all right everybody thank you all for being here with us on seeing green we love doing these and we love being able to help you all as a reminder head to bigger.com David and submit your question that we can answer on seeing green and thank you rob for being here with me today it's what I do best my friend good to be here if you're listening to this on YouTube make sure you leave us a comment let you let us know what you thought about today's show and what you didn't get answered and if you'd like to know more information about Rob or I information and social medias are in the show notes this is David Green for Rob putting the r in the bur method Oba solo signing [Music] off

Channel: BiggerPockets

Views: 30,228

Keywords: cash flow, rental property, turn your house into a rental, turn your house into a rental property, rentals, rental properties, real estate, real estate investing, invest in real estate, house hack, house hacking, how to house hack, what is house hacking, home equity, equity, home prices, inflation, mortgage rates, interest rates, mortgage interest rates, real estate tax deductions, real estate tax write offs, real estate tax write off, biggerpockets, biggerpockets podcast

Id: dWGV4cPFG58

Length: 33min 53sec (2033 seconds)

Published: Sun Mar 10 2024