Rick from Houston TX, Inspired

[Richard Lee]

Hi, This is Rick from Houston, TX. I've been renting a apartment in Houston at $1000/month for the past two years and invest in stock market. Recently get inspired by a story.
A friend (more like an acquaintance) bought a 4 bedroom single family house with big bedrooms and a huge living room, and renovated it into a 9 room house. She rented 8 of the rooms out for $300/month and 1 bigger room for $400/month. The sale price for the house is $16000. Assuming 20% down and 5% -30 yr fixed Mortage, after tax, utility, maintenances, HOA fee and mortgage. The net cash flow is a whooping $1400/month or 16800/yr for a $32000 investment.
I am so moving out next month and will buy my first house.

[Mehran K.]

Welcome to BP Richard Lee.

I started out renting out spare rooms in my primary residence. I didn't do any major renovation though. In my opinion, the type of tenant that is willing to live in a house jam packed with 6-7 other people, is not one I'd like to deal with as a land lord.

I bought a 3bed, 3 bath home in a high priced area near a major business center around here. I've got a big master bedroom away from the other 2 rooms. They each have their own bathroom. Everyone's got privacy. It's pretty simple. Just food for thought.