The headache of playing peacemaker between 3-5 unrelated tenants doesn't sound worth the premium management fee; not to mention rent by room generally brings in lower quality tenants which require significant more management.With that said, higher rates are pushing investors toward rent by room simply because it's the only option for cash flow (at least in Denver) which is why I have so many folks reaching out.If you currently have rent by room investments or perhaps you're a PM currently offering rent by room, I'd love to hear your feedback and any advice you may have. 

It will depend on the quality you're looking for..

For cash flow-focused investments, consider neighborhoods on the west or south sides, like Speedway or Southport, but be mindful of local market trends and tenant quality.

I've had a couple of bad actors, but all in all I've had good experiences and continue to provide this type of housing.   

If the water would have came back bad we were prepared to replace the pipe but was told this repair would be around $8K. 

Once the common equity has absorbed all the "bad", the pref equity gets affected.Another thing to think about with pref equity offered during a capital call.

Combine that with rates that are near high for this century.  3 things could solve this 1) RE prices fall (that would be bad for me) 2) rents increase a lot without RE prices increasing similarly (this would be bad for tenants) 3) rates fall a lot.  

Not that that means anything good or bad :-) But if you want high quality genuine coaching about investing in Philly and at a reasonable rate, I can  connect you with a wonderfully savvy, professional investor who does coaching.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

This particular property that I looked at is managed by a PM company and it has bad reviews especially for cleanliness.