renting out rooms

Jersey City, New Jersey
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renting out rooms

Brandon MorganPro Member
Member since 2023 · 132 posts · 144 votes

Hi all, I am new to Real state investing and Live in the NY/NJ Area. things are super expensive. I was originally looking to buy a Multifamily but that seems to be impossible due to prices and inventory. I now started looking at single families so that I may possibly rent out the rooms. does anyone have any experience with renting out rooms? any legal issues I should know about? I am open to any advise on the matter. 

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  • Stephen Montez
    Real Estate Agent · Las Vegas, NV · Member since 2024 · 50 posts · 18 votes
    2y
    Quote from @Brandon Morgan:

    Hi all, I am new to Real state investing and Live in the NY/NJ Area. things are super expensive. I was originally looking to buy a Multifamily but that seems to be impossible due to prices and inventory. I now started looking at single families so that I may possibly rent out the rooms. does anyone have any experience with renting out rooms? any legal issues I should know about? I am open to any advise on the matter. 

    I've worked with investors who exclusively work with rent-by-rooms and while I can't speak to any legal troubles that have come up I can certainly say that location is going to play a large factor in the occupancy. Try to position properties around Hospitals (teaching-hospitals work best) as these are great locations for rent by rooms for nurses and students that only need a place to sleep and cook for a couple of hours and then get back to work. These also tend to be higher quality areas with higher quality tenants for people who are renovating their own home or any other reason. Hope that helps and best of luck! 
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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    2y

    Some areas here may have rent by the room ordinances for non-family so you would want to check, but single-family homes in the same areas should be selling as hot or hotter than multi-family. What area are you looking to house hack in? NJ/NY is not a cash flow investment market in most parts so you have to buy different than what you might read in most forums.

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