Per Unit vs Per Door Renting

[Roberto Sembiante]

Hi guys!

My name is Rob. I am new to the real estate investment community and even newer to the bigger pockets community. I messed up in my first property and have come here to learn more than I ever could alone! There is two unit multifamily property in my area that has been on the market for 3 months. The property is in a fantastic neighborhood and is massive for the price. However being that I am going to use a VA loan on this property (still active duty), the numbers do not work out to what I would consider a good deal. 2400 mortgage before setting aside for all other expenses (including management due to constant deployments) when I could only get 2900 in rent if done per unit. However the current owner is renting it out per room making 4100 for the combined 7 rooms throughout the property. Is it a good idea to go about renting by room and what complications/rewards can this lead to?

PS. Area is next to three colleges so tenants most likely will not be hard to come by.

[John Warren]

@Roberto Sembiante consider your long term goals first to get the answer to your question. Are you planning on staying in the area for a long time? If so, renting by the room could be feasible. If not, how will you manage the additional headaches of room rentals from afar? Also, make sure you are taking into account maintenance, CapEx and vacancy in your numbers.