Major Mindset Shift Leads To Major Success!

    Meet our wonderful clients and house hackers, Josh and Shelbie! We’re excited to share how a major mindset shift allowed them to pursue their first investment property in the greater Sacramento, CA area. It took time to change their thinking but now they have a fire burning inside on how investing through house hacking has set them up for success. Let’s find out how they did it and where they’re headed next!

    Starting With Burn Out

    Josh and Shelbie originally started house hunting in 2018 with another real estate team. They spent 6 months searching and looked at over 80 houses, always finding a reason why each one wouldn’t work. They always felt hesitant about moving forward and never pulled the trigger. Finally after losing stamina and reaching burn out, they decided to give up their search and rented for the next 2 years.

    Ready For A Mindset Shift

    After renting those 2 years, they met investors who opened their eyes to house hacking. Josh and Shelbie had been working on shifting their mindset during this time by diving into the BiggerPockets podcast, community, and resources. They decided to take action but this time with a whole new way of thinking when they reached out to Kyle Renke, real estate agent on The David Greene Team.

    Josh and Shelbie learned to study the market and analyze deals beforehand to prepare. They learned that investors take action and learn by doing. By preparing themselves with their own research AND working with The David Greene Team they were open to looking at single family homes, single family homes with an ADU, and multifamily properties to increase their chances of landing the right property.

    Striking Out But Not Giving Up

    Knowing that Josh and Shelbie previously reached burn out years before during their house search, The David Greene Team made sure to guide Josh and Shelbie to only properties that would help them reach their investing goals. Still feeling slightly hesitant, they put an offer on a home that was rejected. With this new mindset and feeling the pain of rejection, Josh and Shelbie knew they would only put out their most competitive offers going forward.

    Being Put To The Test

    The next offer they submitted was accepted on a single family home! During this transaction, Josh and Shelbie’s true investor skills were put to the test. Right after the seller accepted their offer, Zillow submitted a higher offer to the seller. Throughout the transaction, the seller made it difficult for Josh and Shelbie, hoping they would back out so the seller could then accept Zillow’s offer. Luckily Josh and Shelbie used their new mindset to push ahead and close the deal so they could begin house hacking!

    Time To House Hack!

    As soon as they had keys in hand, Josh and Shelbie immediately started preparing the house so they could execute on their room rental strategy. They measured, took pictures, and listed each room for rent. One tip Josh and Shelbie recommend is to focus on renting the least desirable room first (probably the smallest room). Once that room is rented, the other rooms should easily be rented!

    Josh and Shelbie were extremely diligent with their tenant application and screening process. They were up-front about the house rules, expectations, and anything that could deter a potential tenant (knowing that the right tenant would be ok with any that could be seen as negative if not shared up front like rules with shared living spaces, parking rules, etc.). They made sure to have several phone calls, Zoom calls, and run background checks before a potential tenant even came to see the house in-person. Josh and Shelbie successfully rented all 4 bedrooms, while living in the 5th bedroom, within a month!

    How’s It Going Now?

    When we checked in with Josh and Shelbie recently, they let us know that things are running so smoothly with their house hack. They love their tenants and are almost surprised how well everyone gets along. They shared that it really shouldn’t be a surprise because they credit their success to being so thorough up-front with their screening process and not letting the fear of vacancy allow them to accept anyone who would pay rent.

    Now, they have one bedroom that is recently vacant and they are currently weighing their options with renting it to a new tenant. With having all of the bedrooms occupied, they’re currently able to cash flow.

    They shared they’re weighing where they are now on the “comfort vs profitability spectrum.”

    By keeping the room vacant, they’ll be more comfortable but less profitable:

    • keeping the dynamic of the house
    • having less people sharing the kitchen, living space, and bathroom

    On the other end of the spectrum, they risk being less comfortable and more profitable by renting the 4th bedroom. They are currently working to decide which option will be best for them!

    What’s Next?

    Josh and Shelbie let us know they are itching to move on to their next house hack! They’ve been studying the market and keeping their eye on inventory so they’ll be even more prepared the next time. Stay tuned because we can’t wait to share when they’ve moved on to their second house hack!

    If you’re interested in house hacking like Josh and Shelbie, reach out to The David Greene Team to see how we can help.

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