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!