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Let's talk rental properties · The Boujee Multipreneur

• 0:16
  SPEAKER_00: Welcome back to the Bougie Multipreneur podcast.
• 0:20
  SPEAKER_00: I'm your host, Dr.
• 0:21
  SPEAKER_00: Hilary Hushauer Jones.
• 0:23
  SPEAKER_00: So let's talk about money.
• 0:25
  SPEAKER_00: Let's talk about multipreneur.
• 0:27
  SPEAKER_00: Why are we talking money and multipreneur?
• 0:30
  SPEAKER_00: Because I'm a bougie multipreneur and I want to give you some ideas of things that maybe you could do or are doing to create more passive streams, more income, whether it's passive or active.
• 0:42
  SPEAKER_00: And one of the things I want to talk to you today about are rental properties.
• 0:47
  SPEAKER_00: So one of the businesses that I own along with my husband are uh several rental properties.
• 0:55
  SPEAKER_00: Um to date, we have I think six or seven rental properties uh that are like family homes as opposed to the commercial ones that we also own.
• 1:08
  SPEAKER_00: So I want to talk about like how we started and then kind of what we're doing now, and uh would love to talk more about this in the future too, but I'm trying to keep these a little bit shorter.
• 1:18
  SPEAKER_00: So if you're like me and you travel like 15, 20 minutes-ish, that you could listen to a podcast and be done with it.
• 1:26
  SPEAKER_00: So we started our rental properties a few years ago, and we started with a duplex.
• 1:34
  SPEAKER_00: The duplex was about an hour, hour, 15 minutes away from us, and it already had two tenants in it.
• 1:42
  SPEAKER_00: So it was a great first buy for us.
• 1:45
  SPEAKER_00: What we did is we did get a loan for it, and we didn't really have to do anything else.
• 1:54
  SPEAKER_00: We didn't have to like really put much effort into it.
• 1:58
  SPEAKER_00: We we tuned up the furnace here and there, but it had two ladies in each side of the duplex that have been there for a couple years, and they didn't have any plans of moving, and they were great tenants.
• 2:12
  SPEAKER_00: We just had to increase their rent.
• 2:15
  SPEAKER_00: They're they were not paying what the norm is.
• 2:17
  SPEAKER_00: And when people ask, well, how much do I know what to charge for rent?
• 2:21
  SPEAKER_00: A lot of times, like places like Zillow online, when you're looking up properties, it will give you like the average like rent in comparison for that area.
• 2:30
  SPEAKER_00: So we kind of do that.
• 2:33
  SPEAKER_00: You can look at other areas with rent, and if you have a great realtor, they can look up all that stuff for you.
• 2:38
  SPEAKER_00: So I guess one of the things is if you're gonna go with a realtor, make sure you find someone that will put in a little bit more effort to help you find all that stuff.
• 2:47
  SPEAKER_00: I think they're well worth it.
• 2:49
  SPEAKER_00: So we started with the duplex, we put that under a different LLC, and we started using the software I believe it's called Tenant Cloud, and the tenants then can pay their rental fees like through this portal, or we have one of the ladies that she still sends us a paper check in the mail.
• 3:12
  SPEAKER_00: So we had the P.O.
• 3:13
  SPEAKER_00: box made, she sends the check to that.
• 3:15
  SPEAKER_00: That's fine, not a big deal.
• 3:18
  SPEAKER_00: Um, also with Tenant Cloud, you can make leases.
• 3:22
  SPEAKER_00: So if you don't have an attorney, maybe you would want to have your a new attorney make you a lease, depending on what state and what kind of is the norm for you guys there.
• 3:34
  SPEAKER_00: There's also on Tenant Cloud, they have some.
• 3:36
  SPEAKER_00: Um, it's great because these sites can just send them, they can sign it, they can agree to it, they can put their deposit on there.
• 3:44
  SPEAKER_00: It's wonderful.
• 3:46
  SPEAKER_00: And then with our site too, they can request things and we can message back and forth on there.
• 3:52
  SPEAKER_00: So let's say the furnace doesn't feel like it's getting warm enough.
• 3:57
  SPEAKER_00: They can send a request through that.
• 3:59
  SPEAKER_00: Although a lot of our tenants just text us, which I find to be easier than signing into an account and then reading the message on there, but whatever works for you.
• 4:08
  SPEAKER_00: Um, another property that we have is it's called a condotel.
• 4:13
  SPEAKER_00: We have one in Myrtle Beach.
• 4:15
  SPEAKER_00: They're they're all over, but if you hadn't heard that term, we were kind of new to it a few years ago, also.
• 4:21
  SPEAKER_00: But a condotel is like you buying that room or condo within a hotel, and then that hotel can actually rent out that room for you, and you don't have to do anything.
• 4:35
  SPEAKER_00: So, talk about passive income.
• 4:38
  SPEAKER_00: They take a cut, you get a percentage, and it's a win-win.
• 4:42
  SPEAKER_00: So with our condo tel in Myrtle Beach, it's right on the beach.
• 4:46
  SPEAKER_00: We literally walk off the bar area in the hotel, and boom, you're on the beach.
• 4:53
  SPEAKER_00: We really liked it because we thought, oh, we'll come here, we'll bring the kids here, it'll be great.
• 4:59
  SPEAKER_00: So, with this type of condo tel, um we can stay in it like for so many days per year.
• 5:05
  SPEAKER_00: Like you can't live in this one 365, but I mean, for many months you could live in it.
• 5:12
  SPEAKER_00: And they have this site where you can just like block off when you want to be there.
• 5:17
  SPEAKER_00: And the great thing with this condo tel, and I'm sure like others, is that you have the option of living in it if you want to, renting it on your own, or having the hotel do it for you.
• 5:31
  SPEAKER_00: So we like the idea of not having to do anything with it, especially since we're in Indiana and the condo tel was in Myrtle Beach.
• 5:39
  SPEAKER_00: We knew that we don't want to hire someone to clean it or to replace things, or if you know, glasses were broken and they needed water glasses or forks or spoons, like we didn't want to like have to deal with that.
• 5:53
  SPEAKER_00: So for us, it was worth paying the extra percentage to the hotel for them to take a cut to deal with everything.
• 5:59
  SPEAKER_00: So they do all the maintenance, they do all the cleaning, they do all the, I mean, just everything.
• 6:05
  SPEAKER_00: Even um once a year, they do all like the touch-up paint, they replace like any type of appliance that's not up to par with everything else, and then their decoration with the room is exactly what the rest of the hotel has.
• 6:19
  SPEAKER_00: So it looks very like uniform.
• 6:22
  SPEAKER_00: So whether or not they choose to book their own rooms before the rooms of the people that own them, I don't know.
• 6:30
  SPEAKER_00: But ours has a great view, so it's always in high demand, and I love that as another way to have passive income.
• 6:37
  SPEAKER_00: So a condo hotel really isn't that much.
• 6:40
  SPEAKER_00: I mean, I should say in Myrtle Beach, it wasn't that bad.
• 6:43
  SPEAKER_00: However, I have seen some in like Costa Rica where I was like, whoo, I mean, they're beautiful, but that is a price tag.
• 6:50
  SPEAKER_00: So when we did the Condotel, we also got a loan for that and put that under um the LLC.
• 6:58
  SPEAKER_00: So when we are getting loans, the percentage was a lot better than it is to date now.
• 7:04
  SPEAKER_00: However, what we look at is what percent the interest rate's gonna be, and then how much percent are we gonna make back that year?
• 7:14
  SPEAKER_00: Like if the interest is six percent, but we're gonna make 15%.
• 7:20
  SPEAKER_00: So we're essentially making 9% back on our money, and that's like a pretty good percentage, like for not having to do anything, right?
• 7:29
  SPEAKER_00: So don't let the high percentage of loans like stress you out and worry you because if you can get a great return and have that booked out, you can make some really good money.
• 7:41
  SPEAKER_00: So, what we did with the Condotel is we kind of looked at the past um results from the previous person and then like how well the area did.
• 7:52
  SPEAKER_00: And we have really enjoyed it.
• 7:54
  SPEAKER_00: It's nice to be able to go to there and like stay for free and even offer it to like friends and family to stay and then still make money off of it and just not really having to do anything.
• 8:05
  SPEAKER_00: So I really love the idea of the condotels.
• 8:08
  SPEAKER_00: Um, it's one of my favorites because also then I can go there.
• 8:12
  SPEAKER_00: Um, we have other uh rentals that are near more closer to us.
• 8:17
  SPEAKER_00: So we have furnished and unfurnished houses and condos.
• 8:23
  SPEAKER_00: So let me speak real quick about like the furnished ones.
• 8:27
  SPEAKER_00: So obviously, uh you can buy an unfurnished condo or house and then furnish it.
• 8:33
  SPEAKER_00: For one of them, we bought it already, furnished from someone else selling it, and we wanted to do the exact same thing she was doing.
• 8:40
  SPEAKER_00: She put it on furnishedfinders.com and she got a lot of like um doctors and nurses coming that were like on contract.
• 8:51
  SPEAKER_00: So that has worked out really well for us too.
• 8:54
  SPEAKER_00: Uh so again, it's um on an LLC, it's separated, and we um if you need a loan for it, just think about how much you can make off of that per year to kind of absorb the cost of the interest that you would have on the loan.
• 9:14
  SPEAKER_00: So with furnished ones, we obviously make a little bit more money off of that, so that's great.
• 9:19
  SPEAKER_00: And then you could do um short-term or long term, whereas ours are kind of medium-ish.
• 9:26
  SPEAKER_00: So we really try for like three plus months.
• 9:30
  SPEAKER_00: We do allow for the random like one month or to come in, and um a little bit longer.
• 9:36
  SPEAKER_00: Sometimes we'll give them a discount if it's three or more months.
• 9:39
  SPEAKER_00: We allow pets because a lot of people are looking for that, and so I do charge more for like pet.
• 9:46
  SPEAKER_00: Currently, I charge$50 per pet per month.
• 9:50
  SPEAKER_00: So we have like a tenant coming that has five dogs, and you would think, whoa, that's a lot of dogs to bring to a house.
• 9:59
  SPEAKER_00: But that's an extra, you know,$250 per month just so they can have their dogs and they love it because it's hard for them to find anywhere else to bring the dogs.
• 10:10
  SPEAKER_00: We do a deposit.
• 10:12
  SPEAKER_00: So the deposits we do are the amount of the monthly rent.
• 10:18
  SPEAKER_00: So if our monthly rent is$2,300, then the they're gonna do a deposit of$23.
• 10:24
  SPEAKER_00: Um, I do put in the contract that there is a clean out fee at the end, and I kind of monitor that to see when I need to increase it because everything goes up, prices go up, and if our cleaning person wants to charge more, that's fine, but we'll just take it out of the renter's deposit.
• 10:40
  SPEAKER_00: So we've we've got that, we've got the contract, they pay online.
• 10:44
  SPEAKER_00: Um, we can even do like pro rate if they want to stay a little bit longer.
• 10:49
  SPEAKER_00: So I I also love the furnished ones because, in at least in my area in Indianapolis area, there's a lot of people traveling.
• 10:57
  SPEAKER_00: And there's also a lot of people building houses.
• 11:01
  SPEAKER_00: And this was one thing that really excited me about having like a medium-term rental, is that people are building houses so much in my area that, and I know this personally, once you are building a house, maybe you need to sell your current house.
• 11:17
  SPEAKER_00: And then where do you stay in the interim, right?
• 11:21
  SPEAKER_00: So I do love furnished houses and condos for that reason, too, because then people could use that.
• 11:28
  SPEAKER_00: If you could ask like your realtor friends to suggest your furnished rental house or condo while people are waiting for their house to be built between selling their previous one, I think that's like a win-win.
• 11:42
  SPEAKER_00: So I do love the furnished ones.
• 11:45
  SPEAKER_00: Uh, we also have unfurnished, we have a few of those as well, and those are great.
• 11:50
  SPEAKER_00: I do love newer ones or condos.
• 11:53
  SPEAKER_00: I love so we've got like regular houses and subdivisions, we've got condos, we've got duplexes, and we're about to have a townhouse also.
• 12:04
  SPEAKER_00: I kind of like the condos and townhouses that have HOA fees that like do everything.
• 12:11
  SPEAKER_00: Case in point, when it snows here in Indiana, then someone's gotta go shovel and snowblow.
• 12:18
  SPEAKER_00: And if we can't get in hold a hold of someone to do it, then me or my husband are gonna be out there doing stuff.
• 12:24
  SPEAKER_00: I don't really want to do that.
• 12:26
  SPEAKER_00: Like, I really like to be more hands-off.
• 12:29
  SPEAKER_00: Let me just deal with the leases and the terms and filtring the money, and that that's my kind of income.
• 12:36
  SPEAKER_00: So I I kind of like condos where they have the even though it's a larger HOA fee, but I really like that I don't have to do anything, so it depends too.
• 12:46
  SPEAKER_00: Like, if you're really like hands-on and you want to do all that stuff, great.
• 12:50
  SPEAKER_00: I have like several other businesses, so I don't really want to devote a lot of time to doing things, fixing things.
• 12:58
  SPEAKER_00: Case in point, we got this one little house, it was like a three-bedroom, two-bath.
• 13:03
  SPEAKER_00: It was a great deal, and um, it needed a little bit of work, and so I actually enjoy painting and I thought, you know what?
• 13:10
  SPEAKER_00: I'm gonna paint some things, I'm gonna redo the kitchen cabinets, we're gonna get all new appliances, we're gonna do this and that.
• 13:18
  SPEAKER_00: I painted all the kitchen cabinets and the bathrooms and their cabinets, and I did it all in like one weekend.
• 13:26
  SPEAKER_00: So, note to self, that's too much work.
• 13:29
  SPEAKER_00: Ended up hurting my shoulder because I was sanding and sanding and scraping and painting and cleaning and sanding and then painting again and then putting glass on, and it was just way too much.
• 13:40
  SPEAKER_00: So, learned my lesson that for bigger projects like that, I'm gonna hire a professional to get that done only to save my body.
• 13:49
  SPEAKER_00: Although I love doing it, I was, you know, a little put off by the the injury that followed.
• 13:54
  SPEAKER_00: However, they looked beautiful.
• 13:55
  SPEAKER_00: I was really happy with them.
• 13:57
  SPEAKER_00: So we now look for properties that have less work to do.
• 14:02
  SPEAKER_00: Um, and we are just uh buying.
• 14:05
  SPEAKER_00: Um, I think it's actually today or tomorrow, we'll close on a townhouse that's a brand new build.
• 14:12
  SPEAKER_00: So, how great will that be?
• 14:14
  SPEAKER_00: That everything will have a warranty on it, and the paint is pristine, the carpet and the flooring is perfect, and the furnace is gonna be perfect, the roof is gonna be perfect, all those little things that cost money here and there.
• 14:29
  SPEAKER_00: We won't have to worry about for a while.
• 14:30
  SPEAKER_00: There is an HOA, so we're gonna be paying a little bit more every month, but we're gonna be getting more from this townhouse that's gonna be more luxury.
• 14:39
  SPEAKER_00: So we have some houses that are um in an okay neighborhood, I would say.
• 14:45
  SPEAKER_00: We are gonna have uh this townhouse in a more of a luxury area, and so we're gonna start even building more of these like luxury rentals because in our area it can afford to pay for something like that.
• 15:00
  SPEAKER_00: People can afford that and they're looking for it.
• 15:02
  SPEAKER_00: So we get a lot of people that are on contract for different things, so it's gonna be a great win-win.
• 15:08
  SPEAKER_00: And then with this more of a luxury townhouse, we're gonna do a furnished one, unless we find someone that just doesn't want it furnished, and then we're just gonna put all the furniture in storage.
• 15:18
  SPEAKER_00: Not a big deal.
• 15:20
  SPEAKER_00: So we um I left it up to my husband, but he did go and get uh brand new furniture for it.
• 15:25
  SPEAKER_00: We was really trying to do a little higher end on this more of a luxury townhouse in our area.
• 15:32
  SPEAKER_00: So some different things that we're doing.
• 15:34
  SPEAKER_00: I do definitely want to do a podcast soon about the commercial spaces that we own.
• 15:40
  SPEAKER_00: In fact, we have another business that we're starting, and it's going to um be an event center in a commercial building.
• 15:50
  SPEAKER_00: So I'm gonna tell you all about that too.
• 15:53
  SPEAKER_00: But I could talk for days and days about how much we love our rentals, how much we're getting this, what I like to call passive income.
• 16:01
  SPEAKER_00: I realize it's not 100% true passive, especially when we have to go and shovel snow.
• 16:06
  SPEAKER_00: But good enough, right?
• 16:08
  SPEAKER_00: We're we're making money, we're sitting back and doing that.
• 16:11
  SPEAKER_00: It's covering all the bills and more.
• 16:13
  SPEAKER_00: And then, you know, how great is it in like 20 years or so?
• 16:18
  SPEAKER_00: We could, if we wanted to, or even sooner, we could sell that and make a lot more money off of that.
• 16:23
  SPEAKER_00: So that's what we're banking on to is we're putting a lot of our money into these properties that we will then sell later when the market is ready for it, and then we'll make some money off of that.
• 16:33
  SPEAKER_00: Um, so I guess it depends too on where you are.
• 16:36
  SPEAKER_00: But I know in my Indianapolis area that everything is just booming all the time, and we don't really see a lot of negative effects in this area.
• 16:45
  SPEAKER_00: We're in uh Hamilton County, so it's a more affluent, nice area, and um, it's just so great to have some extra like streams of income coming in.
• 16:56
  SPEAKER_00: So again, I'm Hillary, I'm your bougie multipreneur.
• 17:00
  SPEAKER_00: We'll keep talking more and more ways to make money, uh, different ways to get it passive and active, and mindset around money.
• 17:09
  SPEAKER_00: And I like to give you a lot of like examples of what we're doing because I know I have a like friends and I have um clients.
• 17:16
  SPEAKER_00: I'm actually a business coach too, and I know they love hearing these stories.
• 17:20
  SPEAKER_00: So I hope you enjoyed and um let's go get some money.