Where to Purchase for Rent by the Room SFR in San Diego?

[Anthony Horner]

Inspired by BP episode #392 with Todd Baldwin where he discusses purchasing property in expensive markets with high population density and strong job market. To overcome the high prices, he rents the properties by the room to force strong cash flows.

I'm considering properties with 5+ bedrooms (or potential to make 5+ BRs), solid BR-to-BA ratio, ample parking and no HOA in the Mira Mesa, Bankers Hill, North Park and South Park submarket neighborhoods.

If COVID was not in the picture, what are your thoughts on the above strategy? Does renting by the bedroom change given that COVID is part of the equation?

All tips, tricks and anecdotes are appreciated... thank you!

[Dan H.]

I have never understood why tenants would pay more for renting by the room than it would cost to rent the whole unit but apparently it does happen. 

My question is why?   Why would they not simply get a few people together,rent a house and each pay their portion?

Now assuming you can find tenants that are willing to pay a premium to rent by the room, how much extra effort is there for the LL?   Tenant turnovers are not cheap and a pain.   If i rent 4 rooms to individuals, I suspect I would have close to4 times the tenant turnover rate as renting to a single tenant.

In summary, I suspect it can increase cash flow but the expense of more work and more vacancies.  

Good luck