Sure one unit may have more occupants than the other, etc. but this is quite simply the simplest way and quite arguably the fairest way because of the issues with rubs above ; ESPECIALLY when this understood by the Tenant before moving in -- instead of focusing on utilities for the individual (RUBS) you are focusing on utilities for the space.

@William CoetThe big players definitely approach these markets differently from individual investors.

While rent rates do increase, so do the potential headaches of managing multiple tenants.For example, here in Bryan and College Station, TX, you can get an extra 10% by renting out rooms individually.

Private Money Lenders:Pros: If you have a network of private investors, you can find individuals who lend money for a share of the profits.

@Ryan Kline You either have a balance sheet we all envy or you are an individual who has no confidence in their ability to be a good real estate operator.

We are excited to start building our network and meeting other individuals in the area.

For the individual renter their income determines how much Section 8 will pay, not to exceed 40% of the tenants income.

We are considered to be the average of the 5 people we spend the most time with so connect with REIA meetings, accountability partners, and mastermind groups to engage with individuals interested in real estate investing.At the bottom of this page is a list with help in it.

Make sure you clearly identify the common areas (accessible to everyone living in the unit) and the private areas (like individual bedrooms).

Rather, the income from those entities flow-through to your individual tax return (Form 1040), where it's taxed along with all your other sources of personal income.