Renting a 4br house vs renting it's rooms, which is better?

[Gerald Harris]

Several years ago I have a friend of mine introduce me to a concept I would like to share.  

Here it is

A 4 Bedroom home where i live can easily rent for $1100 to $1200 per mo.   Purchase price on this would be around 90k.  

But what if you take this same home and rent rooms? 

In this same area the rooms rent for between 400 to 500per mo.?   

Look at the cash flow difference.   What he did was this concept called "transitional housing".  

Transitional housing is where people who need to move to an area for a period of time typically for job purposes.   What my fried did was take this concept and charged more rent by paying for utilities (water, gas, power) also he furnished his houses with beds and dressers.    

As a result, he bumped his rents from $400 per mo to $650 per mo.   He's up to about 6 or 7 houses now and is doing great.   

The other thing that this concept solved was non payment of rent.   If 1 renter stopped paying rent, there were 3 others that were paying it.   

This is a great concept anyone can apply in their own cities.