Boosting Cash Flow - Is renting by the room worth it??

[Jake Andronico]

Renting by the room can be AWESOME for boosting cash flow, but it can also be more maintenance, management, and drama.  

Here is a quick case study: 

I bought this property in Reno, NV for $356,900

Looking at rental comps for this specific property - it's estimated to rent for around $2,500 per month.

However, upon purchasing, I knew there was a strong demand in this area for students renting by the room. It's a 5 minute drive from the University, and has ample parking because of the fairly large driveway. It also happens to be in a cul de sac. 

After house hacking and moving out, this property now rents for $3,300 per month (and is still slightly under market). 

I've been continuously reinvesting the cash flow back into the property, as it's a house from the 70's. 

There's definitely been some drama, trash, etc. However, in my opinion the small increase in headache (I self-manage) is well worth the significant increase in rent. 

Curious to hear if anyone else rents by the room, and what their experience is! 

[David Hochgurtel]

Hello Jake,

I wanted to express how truly inspiring your post is. Your willingness to share your experience with renting by the room, coupled with your ability to self-manage and reinvest in the property, is commendable. While I'm relatively new to real estate investing, I've been exploring the idea of house hacking and renting by the room in the UNR area as well, especially with many of my friends starting there this year. I've recently acquired my real estate license and am working towards my goal of purchasing my first investment property in the coming years.