Big cash flow from small houses with Rent by the Room

[Jake Boyer]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $325,000
Cash invested: $81,209

2/1 converted to a 6/2 and rented by the room to maximize cashflow!

What made you interested in investing in this type of deal?

Had a GREAT realtor who exposed us to this strategy and it has worked out exactly as intended!

How did you find this deal and how did you negotiate it?

Found it on market

How did you finance this deal?

5% down with my partners 1st time home buyer loan. He stayed in the property during the seasoning period then moved and rented the room out

How did you add value to the deal?

Conversion of garage, divided living rooms to create more rooms and added value through purpose built features for rent by room model

What was the outcome?

Excellent cashflow from a home that would have barely broken even otherwise

Lessons learned? Challenges?

Don't over do it, but don't under do it either. Nice fixtures and aesthetic things that may cost a little more go a long way when it comes time to rent it out. Tenants appreciate the nicer things and are willing to pay a bit more for many things that would otherwise be considered as unnecessary expenses, i.e. upgraded appliances, tile backsplash, etc. Things cost more and take longer than expected, but in the end it'll all be worth it.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes! Sherief Elbassouni is THE MAN!!! Provided great value, above and beyond what he had to and has become a great friend since!