Sacramento Investing - Renting by Bedroom VS Unit

[Christian Rozo]

Happy Holidays everyone, 

I'm looking to purchase a multifamily in Sacramento, live in one of the units, and rent out the rest, and would like to know if any investors rent out their multifamily properties by bedroom versus by entire unit? If so, what has your success been with that? And your reasoning for this renting style? How is your price point for that bedroom inside a shared rental differ versus a standalone one bed/bath rental unit?

I tried to do some of the legwork myself but haven't found many rentals currently listed on hotpads for shared housing. 

In particular, we are searching for deals within 3 miles of the Hw 55/90 interchange, with a ceiling price point of $600,000. Have put in offers on two triplexes so far. 

Thank you!

[Hugo Luna]

@Christian Rozo Thanks! 

We used a simple 1-2 page lease agreement that we drafted ourselves. There are many templates on BP, but we wanted to keep it simple and draft our own. The main points on our lease agreement were in relation to common areas and cleaning expectations. Since we lived in the home, the terms of the lease were a bit different. 

We did furnish the bedrooms. Since our target market was young working professionals, we made sure to include workspace in the rooms.

I attached our template for reference. We modify it as needed on a case by case basis.