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TigerDeBaiter
LSU Fan
Member since Dec 2010
7924 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

Good point. I'd be straightforward with the landlord and take full responsibility for the lease term. I think roommates are pretty common.


Your response tells me you don’t even understand what the responses are regards of subletting. So you’re probably also overlooking a ton of other shite too.

Roommates typically go into a lease together. Subletting is you setting terms to a rando from Craigslist. Unless your lease say you can do so, whatever terms you agree to are going to be worthless. And you will have acquired a squatter. Good luck.


buckeye_vol
Ohio State Fan
Member since Jul 2014
32215 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

At the same time having a roommate to help share costs is a pretty common thing. There are a few ways to look at this, I know.
And I think it would be a lot easier to find someone to split an apartment 50/50, without the extra furnishing costs, with a lot fewer risks. And I think the potential quality of the roommate would be greater.


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SaintsTiger
Member since Oct 2014
77 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:


Your response tells me you don’t even understand what the responses are regards of subletting. So you’re probably also overlooking a ton of other shite too.

Roommates typically go into a lease together. Subletting is you setting terms to a rando from Craigslist. Unless your lease say you can do so, whatever terms you agree to are going to be worthless. And you will have acquired a squatter. Good luck.


Thanks for your input. I know what a sublet is. I'm trying to come up with a creative way to do this. There is a strong short term rental markert in New Orleans due to travel nurses, grad students, medical residents on rotation, etc.



I actually found some real estate people to talk this through with. So I'm signing off this thread.

Thanks for the responses guys!


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18
SaintsTiger
Member since Oct 2014
77 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

Business Use of Your Home
quote:
For use in preparing 2018 Returns
quote:
Your home office will qualify as your principal place of business if you meet the following requirements.
quote:
You use it exclusively and regularly for administrative or management activities of your trade or business.

You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.
I'm not surprised that you would not know this though.


You're right. I was thinking of the moving deduction. I moved last year and my CPA told me THAT couldn't be claimed. I did claim the home office deduction last year. FYI for some people the home office deduction did go away. LINK I rely on my CPA's advice usually over a random internet poster.

Not that the home office deduction has any meaning relevance to house hacking with roommates to save on costs. But your point has some truth to it. Now you can feel righteous. Good for you!



buckeye_vol
Ohio State Fan
Member since Jul 2014
32215 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

FYI for some people the home office deduction did go away.
Yes, for employees along with a bunch of other unreimbursed expenses. I do my own taxes, which includes my salaried job, my wife’s, and my consulting work on the side. I claim the home office deduction. One doesn’t have to be an expert to know something simple like that.
quote:

I rely on my CPA's advice usually over a random internet poster
I’m glad, and honestly a bit surprised though, since you’re currently seeking advice on a message board about some idea you got from FACEBOOK, but dismissing most of criticism and suggestions as either not relevant or incorrect. But now that you’re shown the he factually incorrect, you’re all about relying on professional advice.
quote:

Not that the home office deduction has any meaning relevance to house hacking with roommates to save on costs.
You’re trying to save costs by increasing your rental expenses by at least $300 a month, with $1,800 in upfront costs, and with an $4,500 emergency fund for this plan alone. Plus all of the work trying to find a place to fit your needs, that allows subletting, and then all of the work setting up the place, getting the legal paperwork together, putting out ads for it, vetting those interested, finding those who pass the vetting, offering the arrangement, getting it accepted, processing the paperwork, and then you have to share living space with a stranger, and hope that at the least they aren’t going to rip you off (which is why you better have the paperwork, let alone that they’re tolerable to live with. And that’s all for what is at most $600, and could be a lot less if you find a more typical roommate arrangement or rent a studio instead.

Or since you’re so worried about rental costs, while renting an apartment and an office, you could find a reasonable 2-bedroom apartment (say $1200), use the 2nd as a home office (let’s hypothetically use 1/3 of space), stop renting office space (let’s say $600 a month for rent and other expenses), and claim the home office deduction.

And after account for rental costs, tax deductions, and taxes, you would end up saving more each and every month at fixed amount than the best case scenario of your new plan, and a highly variable amount. Plus you could have up to $6,300 free to save, invest, spend, etc.

Accept whatever advice you would like, but when you’re asking for advice to some questionable and risky scheme you read on Facebook to save a little in apartment rent, then it seems like you might want to consider some more reasonable options just in case, including cost savings, and/or increasing your own business income since that could have longer lasting benefits.

Or maybe you should trying driving for UBER, Lyft, DoorDash, etc., a few hours week when they’re busy since it’s decent enough money (when busy) if you’re desperate.


jimbeam
USA Fan
University of LSU
Member since Oct 2011
57902 posts

re: Rent Hacking Plan, Help Me Evaluate
“Hacking” needs to quit being a word


hungryone
LSU Fan
river parishes
Member since Sep 2010
10059 posts

re: Rent Hacking Plan, Help Me Evaluate
Also, the proposed rent for a NOLA area house in a decent area is way too low.


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23
dirtsandwich
Alabama Fan
AL
Member since May 2016
1855 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

“Hacking” needs to quit being a word

I pretty much immediately quit reading/listening as soon as I see/hear it.
This post was edited on 11/22 at 9:34 pm


buckeye_vol
Ohio State Fan
Member since Jul 2014
32215 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

I pretty much immediately quit reading/listening as soon as I see/hear it.
I’m oddly fascinated by it based on the OP’s responses.

On one hand, he’s self-employed with 7 good years of revenue, he rents out an office, and has a go-to CPA.

On the other hand, he thinks he’ll QUALIFY for up to $2,000 in rent (3X gross income; $72,000 annually) to the “accounting” to determine this year’s income despite almost 90% of the year completed (and 7 good years already), and even though he was responding to a question about AFFORDING $1,500 rent for 6 months.

O yeah. And he learned about this “hack” on Facebook because while trying to find a roommate because one-bedroom apartments can rent for up $1,200 per month. I know that I would do whatever I could (rent a studio; pay more than I want to; move to a cheaper suburb) to not have to live with a random roommate in my 30’s, let alone one who agrees to the unusual arrangement. I would rather live with my parents if they were nearby (cheaper anyways).

So I think it’s clear that the OP wants to give off the impression that he’s got some impressive small business venture than it is in reality, even though he was searching for roommates to avoid paying 1-bedroom apartment costs (I’m sure plenty of good ones closer to $1,000 available), and now wants to live with a random person who is willing to agree to an unusual and expensive arrangement, to save even more.

On top of that, he somehow needs to do “accounting” to figure his gross income in a nearly finished year to determine if he can merely afford something. I would think a successful business owner, would at least know that differences in expenses could make what is affordable completely different. So my guess is that his adjusted gross income could be close to half his gross, especially if he’s paying for benefits that employers partially fund (retirement, but insurance in particular).

So my suggestion is that he decides between either a reasonably priced apartment 1-bedroom and 2-bedroom, then chooses the lower cost option between a 1-bedroom with a separate rental office and a 2-bedroom with a home office. And living by himself, maybe he’ll better be able to find a spouse, can get on her (or his for that matter) benefits, and gets there roommate he wanted.


SaintsTiger
Member since Oct 2014
77 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

I’m glad, and honestly a bit surprised though, since you’re currently seeking advice on a message board about some idea you got from FACEBOOK, but dismissing most of criticism and suggestions as either not relevant or incorrect. But now that you’re shown the he factually incorrect, you’re all about relying on professional advice.


I got more substantive responses from the Real Estate board I posted on from actual real estate people. I was wrong about the home office deduction and gave you your due. Feel righteous. Your first response was telling me I work from Uber. That did not sound necessary, nor helpful. I got the idea from watching the roommate listings on Facebook go from pending to sold.

You assume way too much then give advice without knowing all the facts but acting like you do. Classic opinionated person.


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SaintsTiger
Member since Oct 2014
77 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

You’re trying to save costs by increasing your rental expenses by at least $300 a month, with $1,800 in upfront costs, and with an $4,500 emergency fund for this plan alone. Plus all of the work trying to find a place to fit your needs, that allows subletting, and then all of the work setting up the place, getting the legal paperwork together, putting out ads for it, vetting those interested, finding those who pass the vetting, offering the arrangement, getting it accepted, processing the paperwork, and then you have to share living space with a stranger, and hope that at the least they aren’t going to rip you off (which is why you better have the paperwork, let alone that they’re tolerable to live with. And that’s all for what is at most $600, and could be a lot less if you find a more typical roommate arrangement or rent a studio instead.

Or since you’re so worried about rental costs, while renting an apartment and an office, you could find a reasonable 2-bedroom apartment (say $1200), use the 2nd as a home office (let’s hypothetically use 1/3 of space), stop renting office space (let’s say $600 a month for rent and other expenses), and claim the home office deduction.

And after account for rental costs, tax deductions, and taxes, you would end up saving more each and every month at fixed amount than the best case scenario of your new plan, and a highly variable amount. Plus you could have up to $6,300 free to save, invest, spend, etc.

Accept whatever advice you would like, but when you’re asking for advice to some questionable and risky scheme you read on Facebook to save a little in apartment rent, then it seems like you might want to consider some more reasonable options just in case, including cost savings, and/or increasing your own business income since that could have longer lasting benefits.

Or maybe you should trying driving for UBER, Lyft, DoorDash, etc., a few hours week when they’re busy since it’s decent enough money (when busy) if you’re desperate.


Finding a $1,200 2 bedroom in New Orleans that's in a good area isn't easy. Good rentals uptown are around $2/square foot. Some suitable places are closer to $1.50/square foot (sometimes less), except I don't like the locations. I didn't read about this Facebook scheme anywhere but noticed roommate listings moving quickly at prices over and above what 50% of the gross rent should have been.

I have to buy furniture regardless. I'm on the tail end of a year long trip abroad, and moving home next month. Fortuantely I'm able to take advantage of the foreign earned income tax deduction this year which exempts the first $100k in income from regular income tax! I didn't get that idea from a CPA or random internet poster. I have to make a rental deposit regardless. I'd need a rent cushion regardless. There wouldn't be that much search costs over an above what I'd already be doing anyway when checking out the rental market. Posting a facebook ad and responding to solid responses wouldn't be that big of a deal as part of the roommate screening process. The legal paperwork would be basically free for me-- no I'm not going to tell you why. So the "costs" would really only be marginally more than going the traditional ones.

Working soley from home would would be a false economy for me. "Penny wise, and pound foolish" if you will. Would interfere with networking and collaboration opportunities I have at the office, to say nothing of the value of simply being around successful people everyday.

Wouldn't drive for Uber. Too big of an opportunity cost.
This post was edited on 11/23 at 2:47 am


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15
SaintsTiger
Member since Oct 2014
77 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

On top of that, he somehow needs to do “accounting” to figure his gross income in a nearly finished year to determine if he can merely afford something. I would think a successful business owner, would at least know that differences in expenses could make what is affordable completely different. So my guess is that his adjusted gross income could be close to half his gross, especially if he’s paying for benefits that employers partially fund (retirement, but insurance in particular).


Taking this as an example. So many untrue things in here that you're assuming then giving advice on as if your opinion is informed.


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23
SaintsTiger
Member since Oct 2014
77 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

I pretty much immediately quit reading/listening as soon as I see/hear it.


But you kept reading long enough to know to post this



SaintsTiger
Member since Oct 2014
77 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

I’m oddly fascinated by it based on the OP’s responses.

On one hand, he’s self-employed with 7 good years of revenue, he rents out an office, and has a go-to CPA.

On the other hand, he thinks he’ll QUALIFY for up to $2,000 in rent (3X gross income; $72,000 annually) to the “accounting” to determine this year’s income despite almost 90% of the year completed (and 7 good years already), and even though he was responding to a question about AFFORDING $1,500 rent for 6 months.

O yeah. And he learned about this “hack” on Facebook because while trying to find a roommate because one-bedroom apartments can rent for up $1,200 per month. I know that I would do whatever I could (rent a studio; pay more than I want to; move to a cheaper suburb) to not have to live with a random roommate in my 30’s, let alone one who agrees to the unusual arrangement. I would rather live with my parents if they were nearby (cheaper anyways).

So I think it’s clear that the OP wants to give off the impression that he’s got some impressive small business venture than it is in reality, even though he was searching for roommates to avoid paying 1-bedroom apartment costs (I’m sure plenty of good ones closer to $1,000 available), and now wants to live with a random person who is willing to agree to an unusual and expensive arrangement, to save even more.


This is another example of you making uninformed assumptions, forming an opinion based on false facts, then being judgmental about it. Maybe I was simply browsing listings, happened to see a few roommate posts, and saw a potential opportunity to be evaluated. Did you think of that?

Some of your substantive points are actually pretty good, though the unwarranted personal attacks are neither here nor there.

I'll go out on a limb and **assume** based on your nearly 35,000 forum posts and judgmental tendencies that you're either single or divorced. Post less and you'll have a better chance of getting laid. Guaranteed.


Thib-a-doe Tiger
LSU Fan
LaTour and in BRgetthenet's head
Member since Nov 2012
31856 posts

re: Rent Hacking Plan, Help Me Evaluate
Pretty much all you’ve posted is “I didn’t get the answer I wanted here, so I’m going somewhere else”


And yet, here you still are


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41
rowbear1922
LSU Fan
Baton Rouge
Member since Oct 2008
12670 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

carefully screened professional type roommates


quote:

turnkey place, and more square footage for their money compared to renting a 1 bedroom.


You think professional types want random roommates? I'm a professional (31) living in Nola with 1 roommate (my younger brother, 25) only because he is in law school. I'll never have another roommate and especially not random ones I don't know.

I'd rather pay $1200-1500 a month to have a space all to myself than to pay less rent in hopes me and the other randoms get along.

ETA: Just by looking through your search history, sounds like you are a notary. I would assume/hope you have something else, like a law degree with notary just as a side hustle.
This post was edited on 11/23 at 7:22 am


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rowbear1922
LSU Fan
Baton Rouge
Member since Oct 2008
12670 posts

re: Rent Hacking Plan, Help Me Evaluate
quote:

SaintsTiger



Is your name Matt Morris?


SaintsTiger
Member since Oct 2014
77 posts

re: Rent Hacking Plan, Help Me Evaluate
Thanks for the substantive replies guys, sincerely. Some good points were made.

As far as the posts that assumed I was an Uber driver, wouldn't qualify to rent housing at all simply because I'm self-employed, interpreted a quick reply about needing to do accounting as if I hadn't done any at all this year, and other mis-characterizations/fabrications for the purpose of criticizing my off the cuff plan, those were not helpful. Nor relevant. Obviously those types of false assertions would make most people a little defensive.

I'll go back to my corner of the internet again.

and happy posting!


WhiteMandingo
Member since Jan 2016
1547 posts

re: Rent Hacking Plan, Help Me Evaluate
So a potential roommate can rent a 1bedroom apt that cost 900
And not have a stranger living with them.

Or

Potential roommate can rent a bedroom in some random guys house for $900 plus utilities


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40
baldona
Auburn Fan
Florida
Member since Feb 2016
10907 posts

re: Rent Hacking Plan, Help Me Evaluate
This is a bad idea as a renter, good idea for someone that owns a home. A lot of guys are giving you shite in here for no reason though.

The reason its a bad idea as a tenant to sublease a place you live in, is because your roomates will break shite and want shite repaired and then you are nothing but the middle man and have no idea how good your landlord will be.

Save up and buy a house, then do this OP. It will allow you to likely buy a house in a nicer place then what you could equally afford to rent. Therefore attract better tenants. Also, you won't need to be the middle man anymore.

Your other option, is to do the standard roomate thing where you find someone to sign a lease TOGETHER to be equal.



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