Is this a reasonable idea or is it stupid?
Im a young dude, single and no kids just starting my career in CA. I’m considering buying a large SFH in a nice small town, for $500-600k (5 bedrooms,3000 sqft) with 20% down and renting the rooms out to offset mortgage. I’m familiar with this town (have had family in it for years) and believe it has a lot of room for growth. Estimated mortgage of $3500/mo, I wouldn’t consider this reasonable if it were just me handling the mortgage (too tight) , hence renting out rooms. Im split on this being a good idea, or just plain stupid.
How can I gauge the room rental demand for this town? Currently there are only two room rental listings on Zillow and Facebook, But there are plenty of houses for rent for about 2.4-3.5k per month. Based on listings in nearby towns, the range for rent per room is between $650-$1000 per room (depending on location + size of room/house)
Someone knock some sense into me
Buya SFH and rent rooms out?
byu/Aggravating_Plane694 inrealestateinvesting
Posted by Aggravating_Plane694
2 Comments
That was the only way I could afford a house here.
I have done it. But several things to keep in mind.
1. If you plan to grow, this is unsustainable. rent by room means higher turnover and that’s 5 tenants instead of 1. So as opposed to a family that might stay a few years, there will likely be people moving out each year.
2.I wouldn’t feel comfortable evicting someone who is one measly hollow door away from me when I sleep and has access to my food. Every time I have done it, I have had ridiculously high standards for those tenants so there is absolutely 0 percent chance of them not paying rent.
3. People will argue and sometimes they will come to the landlord. I have had a few arguments that kept escalating. And it’s a headache to deal with. Even had one that ended up with cops.