Hi Guys,Need your advice.I am planning to  purchase a house and rent each room individually in Round rock. Wondering if we need a licence for that as it will be single family and multiple ppl staying..... appreciate y...

@Ralph R. in my neck of the woods Seattle as well as Portland it is very common to rent 400k house, actually more like 600k to 700k in Seattle and normally you get better renters as price goes up. this one is an appreciation play and there's nothing wrong with that as long as you are not getting into a negative cash flow situation which I don't think is the case. actually SFH is more of an appreciation play than cash flow anyway. for pure cash flow, apartment is the way to go. as far as down payment I would take the heloc from the condo as down payment and keep both if your income to debt ratio is Ok.

Much appreciated.Justin R- I don’t disagree that I should endeavor to become really proficient in a certain area of investing or perhaps in a specific market or type of home.

Would really appreciate constructive feedback to improve my skills :)Side question: does the number in an R-zoning refer to the number of dwellings allowed per acre?

When it comes to determining vacancy, M & R and CapEx my confidence on my numbers falls short so I am hoping for a double check.Current income $1650/monthProperty price $60,000I am still newer at this so I would likely mortgage it. 

.$230k sale priceCurrent rent $1675 approx $125 below market.New roof in 2010 and furnace in 2013.HOA $145Tenant pays utilities and owns appliances.With conservative estimates for PM, Cap X, M & R, plus taxes and insurance it looks like this is going to be a negative cash flow deal even if I raised rents to market value. 

The combined properties .61 acres R-5 zoning could be subdivided into 2 or 3 lots. 

@Raul R.

You'll also need sheets, utensils, towels, etc.So there here is your formula:FFE = [($500 + R x $200) x 1.10] x P$500 is your 4 appliances.R is your total rooms you are furnishing.$200 is the cost per room.1.10 is a 10% adjustment factor for purchasing small things.P is a premium factor for items, e.g. luxury sheets, pillow top mattress, etc. 

Originally posted by @Andrew R.