Thinking of Buying a Large Home and Renting Rooms

[Amy Jones]

I'm in between the idea of buying a multi-family home or buying a large home and renting rooms. Would someone be able to give me insight on some of the pros and cons of buying a large home and renting rooms?

[Jeff Roth]

Hi Amy in Charlotte, North Carolina-

Great Question!

You are deciding between buying a multifamily or a large home and renting rooms and asked the pros and cons of buying a large home and renting rooms.

The first thing you want to consider is zoning and how the local government regulates rentals.

Some communities limit the number of unrelated people who can rent in a property.

Once you confirm how many people can rent in a property you want to have a local title company look at the deed and covenants that may limit the number of unrelated people who can live in a property as well.

The pros are a property may check out that you can rent to a reasonable number of people in the property and the cost of the big house may be less than a multifamily offering a greater ROI and you are using the property for its highest and best use adding value to the community with affordable housing.

To Your Success!