Is renting out individual rooms possible / a good idea?

[Christopher O'Brien]

Hi everyone!

I plan on living in Plano, TX for a W-2 job, and I am eager to buy a property in the city. I have been considering trying to leverage an FHA loan; however, there are not many affordable duplexes in the areas (to my knowledge).

I was wondering if it is a bad idea to buy a single family home, live in it, and rent out the other rooms.

I assume that it is more tricky with regulations and simply having a greater number of tenants, but I just wanted to get some opinions. Thank you!

[Jeff White]

@Christopher O'Brien Yes, you can rent out the rooms, but first, check out your city's occupancy limits and HOA is if there is one.

I've done it successfully here in Denver, you just need the right systems in place and house rules to establish guidelines for all roommate-tenants to abide by. The key is short-term leases (4-8 months) because it can give you flexibility if it isn't working out for either you the landlord or the tenant, so you can not renew the lease at the end of the lease term.

Also, most rent by room people move a lot, so not having a 1 year lease is better for them in most cases.