Fully Rented My First Multi-Family

[Kate B.]

I was so happy yesterday about something nice that happened I just want to share my good news.

I bought my first investment property last December and then spent the next months fixing it up.  I had to change contractors in the middle after the first one marked up prices of things from Home Depot -- as if I couldn't check.  But he also had a self-esteem problem and kept needing positive feedback and I got sick of it.  

Last December, after I was under contract and days before closing I spoke to the realtor agent who helped me buy the house.  I asked what she thought I could rent each floor for.  She said $700, or $750.  That stunned me.   I asked if this was in current condition or with all new windows, new floors, new lights, new counters, etc.  She said it was after repairs.   I was floored and I told her so -- but I didn't say I never would have bought this house if that was true because I didn't believe her.   (FYI, this 3 family house was always owned and lived in by generations of one family so there was no history to check.)

Here's how it played out.   I decided to use the first floor for myself -- the whole reason I bought property in Worcester was I could not find rental property for my own use with two dogs.  I do advocacy work here and wanted a place to stay, so I took the first floor.

On the second floor I rented out two bedrooms separately, with the tenants meeting and approving of each other.   A couple is in the larger room paying $700 including utilities and a single woman is in the other room paying $550 plus half utilities which are in her name.  (I pay her the other half out of the couple's rent.)   I'll take in about $1,175 a month after paying half of the utilities.

On the third floor I also rented out two bedrooms separately with the tenants meeting and approving of each other.  There is a middle aged single man in each room.  One pays $625 plus half utilities and other pays $550 plus half utilities, which are in one man's name. That's $1,175 a month.

They all signed leases, the last one this week.  All have paid their rent.    I think RE investing suits me just fine.  Just wanted to share it.

[Scott Harper]

Thanks for sharing the post. My personality would not be suited to living with that many people. Are there any issues with insurance, being that not everybody is related.? Do you feel you need coverage for additional liability? I was renting separate rooms to two ladies and the personalities collided and I had to play ref. Two menopausal, single women, what a delight.