Turn other people's property into yout cash flow

[Jason Nguyen]

Hey guys, so I have recently seen this investor in my hometown is doing this and I felt like this is such a great investing strategy.

What he did was:

1. Rent a Townhouse/Single Family house for $2200 from a landlord.

2. Rent out a master bedroom for $950, regular bedroom 1 for $750 and bedroom 2 for $750 (Bedroom 1 and 2 shared a bathroom) and a basement with full bathroom for $1200.

3. All the rooms are furnished and he pays for all tbe utilities which average about $300 a month.

SUMMARY:

Rent: $2200

Income: $950+$750+$750+$1200 = $3650

INCOME - RENT - UTILITIES = CASH FLOW

$3650 - $2200 - $300 = $1100

He basically make $1100 cash flow from other people's property, and he is currently managing 10+ properties like this. He agreed with the landlord to make any minor repairs on the property and of course this is a win-win deal with the landlord. He got an attorney to write a subleasing contract for him and in my hometown any property with no more than 4 unrelated people may live in the same unit without a permit.

Can you please share your opinion on this?