Join us for the second episode of our new House Hack Ride Along Series as we tour house hacks in the Denver area. These properties will range anywhere from multifamily units, to ADU Airbnb’s, and room by room rentals. I like to call it the MTV Cribs version of local house hacks.
- Watch the YouTube video (at the bottom.)
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the property walkthrough video.
In this episode, I’ll walk you through Jeff’s third house hack right on the border of Lakewood and Denver. The property is a 7 bed/ 3 bath, 3000 sf single family home. The first floor of the house consists of 4 beds/ 2 baths, and the separate walkout basement unit consists of 3 beds/ 1 bath. Jeff, being the house hacking genius he is, got very creative with this one. The first floor is currently being rented out as rent by room, and the basement unit is rented out to inherited Section 8 tenants.
Jeff’s Rental Strategy for the Property
The first floor is rented to 4 different tenants on 4 different lease agreements. Bedrooms with shared bathrooms rent for $750/month, while master bedrooms with private bathrooms go for $850/month. Total rent collected per month for the first floor is $3,200!
Rent by the Room Furnishings
With this being Jeff’s third rent by the room house hack, he has learned how and how not to furnish his rentals. The way Jeff now furnishes his rent by the room house hacks is intentional and serves a specific purpose.
When Jeff furnishes the living room, he sets it up almost like a hotel lobby or doctor’s office. Everything looks nice, but tenants would not hang out in the living room for extended periods of time. Jeff likes to call it “intentionally uncomfortable”. This is also the reason a TV is not provided in the common living area. Brilliant Jeff!
Tenant Storage and Organizational Planning
Each tenant has designated storage in the kitchen, from the cabinets to the refrigerator. If Jeff has 4 tenants, he has 4 shelves in the refrigerator. If he now has 3 tenants, he takes one of the shelves out so there are only 3 shelves for storage. The refrigerator door is shared.
The same concept for designated storage also applies for the shared bathrooms. The maximum people he will have sharing a bathroom is 2 tenants. Jeff’s reasoning is that if all 3 tenants have to be at work by 8 AM, they will all be fighting over the bathroom every morning.
Basement Level Unit
The basement level unit is currently rented out to inherited Section 8 tenants on a long-term lease (>12 months). The tenants were acquired when Jeff bought the property, and the transition was much easier than expected.
Jeff is a big fan of the Section 8 program. He receives 85-90% of rent through Section 8, and tenants pay the remainder. If tenants do not pay their remainder, Section 8 will cover 100% of the remaining rent.
Connect with Us
Jeff and I are both House Hacking Specialists who have our own niche. Jeff focuses on long-term rentals, creative strategies like room by room, and finding value in properties that don’t appear to have it. I focus on short- and medium-term rentals. If you have any questions about rental strategies, finding contractors, or doing repair work yourself, reach out to us.
And be on the lookout for Episode 3 of our Ride Along series where we tour one of my current house hacks!
Ben Einspahr:
- Active Local House Hacker (currently on HH#2!) and Short Term and Medium Term House Hacking Specialist
- Ben@EnvisionREA.com
- 402-850-3003
Jeff White:
- Active Local House Hacker (currently on #5 House Hack!) and House Hacking Specialist
- BiggerPockets
- thehousehackingcoach@gmail.com
- 720-951-6868
