Rent By The Room Strategy

[Johnny Wolff]

Looking to start a group with folks that rent by the room - so we can share knowledge and collaborate on strategies. DM if you're interested and I'll send you the link.

[Pat L.]

That's how I started. Int rates were 18-19% so I had to rent every room in every home as I slowly rehabbed them. BUT I kept a 'secured space' for myself & tools etc in every home, sometimes it was part of the basement or the attic. That way I could come/go at will, be there anytime to watch over the property, collect 'weekly' rents on-time & deal with the odd idiot room-mate.  It definitely had it's moments but the cash flow allowed me to expand much faster.

The most profitable was an old duplex I picked up privately (owner hold) from a fed-up landlord. I opened it up like a frat house & had 7+ rooms rented including the furnace/mechanical room in the basement. 5-6 years later the city began to shut down high density 'student housing' so I converted it back to a duplex & sold it, doubling my initial investment. 

At 19 our eldest daughter did the same to avoid overcrowded dorms & the inflated residency costs. She literally had the other girls pay off most of her mortgage before she sold it 8 years later. All her old room-mates are still close fiends & many, having since bought homes, are doing the same to pay down their mortgages. My youngest (also graduated without loans) & went with a live-in 6-plex instead of sharing close quarters with the 'inmates'.

In my younger years it was an extremely profitable alternative to the now touted $/door concept. However, I am seeing a lot of potential for it with an older demographic who can't afford market rents on their Social Security & little else, but would be good quality tenants that have no problem sharing an old larger home. I know of one semi-rural property doing exactly that. They have 8 rooms rented & some are actually shared.