Rent by the Room Deal Analysis

[Alexander M Dant]

Hey Bigger Pockets! I'm about to close a deal on a single-family house that I will be renting out by the room. It is in the Clarksville, TN area and I figured I'd share how I ran my numbers for this deal. 

I've seen a lot of mentions in the forums of people wanting to do this strategy, because especially in todays market it is tough to find deals with a traditional strategy. Soo I hope this will help anyone who is thinking of doing it.

BUT this is also selfishly so that I can get advice and feedback from anyone who looks at my numbers and may see something they think I need to adjust/fix or just plain out missed. Please, feel free to leave any advice or feedback in the comments.

Purchase Info.

• 3 bedroom/2(full)bathrooms; 1,216sqr feet
• $197,000 with a fixed 30 year, 3.5% rate and 20% DP
• $4,000 in closing costs

Income Breakdown: $2,250/month

      Average of $750 per month per room

Expenses: $1,804, We cover ALL expenses plus extra amenities 

• $167/month combined taxes & insurance
• $225/month with 5% repairs & 5% cap ex
• $225/month with 10% vacancy(to cover our higher turnover rate)
• $50/month wifi
• $100/month cleaning service
• $100/month lawn service
• $200/month utilities
• $19/month garbage and disposal

Details

• $445/month Cash Flow
• 12.31% Coc Roi