I'm a Realtor with a couple properties listed in Boise, ID and a neighboring town for my investor/client that are currently rented as co-living or rent-by-the-room and getting killer income. (7.3% - 9.5% Cap rate) So far, every inquiry has been baffled by the concept of co-living or rent-by-the-room and immediately ask if they're being run as a halfway-house (which they are not).

I am NET cash flowing just over 1k (includes maintenance, repairs, cap-ex, vacancies, utilities), which is pretty good considering this is in SoCal.

In a nutshell, IL (where I live) too expensive of a market, but WI, MI, OH etc seems like you’d get more bang for your buck. also,  you can look at a City’s  consolidation plan and what their plans are for development to get a good forecasting of housing booms.

@Eddie Gonnella Also, when you are at such a scale, you may be able to fetch a valuation based off of cap rates, rather than a rev. multiple.So it is possible, and it is smart to think ahead in this situation so you don't get stuck with nothing if you want to exit!

Yeah, the cap ex is only one of five factors.

It was a pain, but in the end, I came out ahead as there are rent caps in the area and got good tenants. 

So really to have a higher chance at success you should have both money to put in the deal to lower your leverage AND money on the sideline to cover those potential cap ex projects. 

No vacancies when I took over and at a 9.2% CAP.

Does Trump's election yesterday, with presumed higher GDP growth and higher inflation (Tariffs/Deficits), which means higher 10 yr and Cap Rates, change timing of CRE acquisitions?

Hi, Jaycee The deal makes sense for me after accounting for all expenses including vacancy, cap ex, and repairs.