Can I rent out multiple bedrooms of a house separately while living in another state?

[Ian V.]

Hello,

I am new to this whole landlording world and am looking for an answer to an idea I had. I wish to stay in my local city. I am considering buying a house in another state that is cheaper than my market to rent out. However, the ROI on the cheaper house seems kinda low if I rent out the property as a whole. That said, it looks like if I rent out the bedrooms separately, I can earn more for the property overall (500-600 per bedroom vs 800-900 for the whole house.) If I rent out three bedrooms at 600 each, that is double what I would be getting.

However, it seems that renting out rooms separately isn't permitted unless you actively live there with the property as a primary residence (not sure on this point). What if I move to make the house my primary residence, move in my tenants, and then move back to my home state to rent an apartment after x amount of months (not sure how long I would need to live there every year)? There probably is some problem with this, but I am just unsure what it is and if there is a solution to it. I'd rather not find out the hard way. Has anyone done something like this?

[Kerlous Tadres]

Quote from @Ian V.:

Hello,

I am new to this whole landlording world and am looking for an answer to an idea I had. I wish to stay in my local city. I am considering buying a house in another state that is cheaper than my market to rent out. However, the ROI on the cheaper house seems kinda low if I rent out the property as a whole. That said, it looks like if I rent out the bedrooms separately, I can earn more for the property overall (500-600 per bedroom vs 800-900 for the whole house.) If I rent out three bedrooms at 600 each, that is double what I would be getting.

However, it seems that renting out rooms separately isn't permitted unless you actively live there with the property as a primary residence (not sure on this point). What if I move to make the house my primary residence, move in my tenants, and then move back to my home state to rent an apartment after x amount of months (not sure how long I would need to live there every year)? There probably is some problem with this, but I am just unsure what it is and if there is a solution to it. I'd rather not find out the hard way. Has anyone done something like this?

I would buy a duplex in your local market and house-hack that. Once you do that you will have a more clear understanding of how to deal with rental properties