Hi Y'all
I read an article on an FI blog where they were touting "even if you live in an expensive city, stop complaining and figure out ways to hack real estate to make money". One way they presented was to rent a large home and rent our room-by-room. I'm up in Vancouver Canada so I'm definitely not buying a home, ever.
Investment thought:
Rent out a full older home for $2500+utilities. Rent our 5-6 rooms furnished at $800/pop. Landlord would be abreast of what's going on. 4200 revenue - 2800 expenses = ~$1400/ mo profit split between myself and a friend.
Curious if anyone has done something like this before? Seems to be a lot of risk but also a lot of reward. Thanks for your thoughts.
This is generally a terrible idea. You want to rent the house out as a single unit, that way the people know each other going in. Do you want to referee 6 people trying to get the 1 slob to clean up after themselves? Think about the type of people who are going to actively want to live there?
Your best bet is to live in a place yourself and rent it out to a few of your friends.
Sorry to tell you but this is a terrible time to invest in RE. I don't know what it is going to do, but the risk/reward for most deals I see (and read about on this site) are money losers.
I like the idea of trying to think outside the box, and you totally can do different stuff when you are young and single. But I don't think this is a good idea.
I got my start with doing "slow flips" Buy a dump, live in it for 2 years. Fix it up, sell and keep all the profits tax free. The duplex idea also works to live in one side, but I feel this is much less profitable than it used too.
Keep thinking, keep learning.
