Single Bedroom Leasing in single Family homes

[Sam Bone]

Hello. My plan is to use an FHA to get a single family property with as many bedrooms as possible. I need education on what the highest I could charge per room would be and what logic that would be based on.

I'm talking about a single home, like a group living situation where people share a house but rent a single room in that house, and people share bathrooms and share cleaning duties as a community agreement. I currently live in a home like this and there is a high demand for housing in my area (Spokane Washington). 

I want to think that amenities of the home, quality screened tenants, the location, and the price point are all selling factors. You could live in a fully furnished home with laundry, living room entertainment, a back yard, etc without paying 1800+. 

I personally dont mind living like this, but I want to make a price point that would cash flow and allow me to not drive people away at the same time. For something like this: Say you have a seven bedroom new construction home with all the amenities and it's closer to $750,000 in market value and you rent six bedrooms for 750 a piece. I am thinking you would adjust that to the debt service to cash flow. Zillow says it would be like a 3100 dollar monthly payment...I'm getting overwhelmed. Guide my thoughts and judgments? Theres a lot to unpack.

[David Clinton III]

Hi @Sam Bone, this strategy is known as "SRO" or Single Room Occupancy. Some people are quite experienced with it. Locally, I've got a colleague I could introduce you to, and on Bigger Pockets, maybe some will pipe in and help give their experience. I know that @Jonathan Kretschmer knows a thing or two about it.