All Forum Posts by: Daniel Gibson

 Roy, I am not sure who the clientele is. I believe it is mainly people looking for short term rentals, most likely lower income. It is not really close to any big university. It is in a smaller town's downtown area so it is close to the city center.. I know some tenants have been there for a few years. Between the 3 houses, there are 31 Bedrooms. I am not sure what kind of person I would target to be in the rental. Any thoughts would be much appreciated!

Great info on this forum. I am having a similar situation as David and trying to figure out if a weekly rooming house is worth pursuing.

Hey John,

Sorry, yes, I am talking about renting out each room weekly. Some of the residents have lived there for over 10 years! So you did not have a good experience? What do you think was the biggest issue and what would you do differently?

Thanks so much for the feedback!

Dan

Hello,

I have an opportunity to buy 3 old mansion-homes in a small downtown district in the metro St. Louis area. Each home has 10 bedrooms and right now the owner operates the homes as weekly rentals. It is a second generation owner and they have naturally let the property go a bit. Occupancy is around 50% and the buildings have some deferred maintenance. I see a huge opportunity to have a great deal on hands especially because they will do an owner financing deal to offset capital gains. Does anyone have any experience in weekly "rooming houses"? I know it will require more management, cleaning, etc but I have only been a fix and flipper and long term buy n holds.

Would appreciate any replies or thoughts on this topic! 

Thanks,

Dan

Thanks for the responses!

Bob- are you a long term lender for rental properties?

Bryan- thanks for the feedback but they are talking about our personal income from our tax returns not the deal specifically.

Albert- yes it is a smaller local bank.

My business has approximately 6 loans through our local small bank and they continuously talk about how they are investor friendly. However, they keep mentioning to us that our debt to income ratio is nearing their "1.2 limit". It sounds like once it goes below this 1.2 limit, they will not lend to us anymore even though they are keeping these loans as portfolio loans in house.

My question is....Is this bank really investor friendly? I believe the 1.2 rule they use is their bank rule. I know all banks will want personal financials before lending but are there better banks we could be using that strictly look at the cash flow and past performance of our rental properties?

Thanks in advance for the feedback!

Dan