Who rents out a 5 bedroom home?

[Joseph S.]

Hey BP, I'm looking to buying a 5bd single family home and renting out the rooms while I live there the first year. Assuming I want to stop househacking and rent it to a single family after that, I'm curious as to what kind of tenant this would attract.

I'm thinking of families who may convert a room to an office/gym or use one as a guest room. But if they can afford to pay $3-4k in rent, wouldn't they be better off just buying a house (in a more normal market than this one)? One thought is their credit may not be where it needs to be to buy just yet, but I don't know if I'd even be looking for that kind of tenant. Open to thoughts. 

[Nikki Stoddart]

Hi there!  Depending on your market, an interesting play could be to furnish the house and rent the rooms on Airbnb long term (30 day plus). Metro areas are great for this.  If you are near a college, tech corridor, or major hospital system, even better.  I started a 6 bedroom coliving house in the SF Bay area in 2018 and am getting ready to acquire a new 5-6 bedroom home out of state for the same business model.  Cash flow is amazing.