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Updated over 4 years ago,

User Stats

5
Posts
2
Votes
Emily C.
  • New to Real Estate
  • Seattle
2
Votes |
5
Posts

What are the downsides of renting by the room?

Emily C.
  • New to Real Estate
  • Seattle
Posted

Background: I live an expensive market that would make it hard to achieve cash flow with traditional sfrs, so I'm considering investing in a larger sfr and renting out individual rooms with the common space being shared for higher returns than a single tenant. The target tenant would be young professionals (lots of tech in my city), possibly moving from out of state. Some downsides I have in mind: harder to find properties with a good ratio of bathrooms to bedrooms, more expensive to buy a large property upfront, higher monthly maintenance costs (I would probably pay for utilities and communal furnishings), and interpersonal conflicts between the residents. From others who have rented by the room, am I missing any pitfalls with this strategy?

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