Does Anyone Have Experience With Boarding Houses?

[Durante Kirby]

I am analyzing a possible deal for an 8 room boarding house in South Carolina. Motivated seller (property has become a headache for owner), 5 rooms currently occupied, paint and carpet rehab. Would a boarding house be treated as commercial or residential? Is it similar to a multi-family property? Thank you for any advice!

[Jamie Watson]

@Durante Kirby we owned a 9 bedroom. It was by far the most lucrative property we have ever owned, paid for itself like three times. We sold it because we decided we had done it long enough. We owned it for about 6 years I think. It is fairly labor intensive but not a full time job. We collected rent (in cash) weekly. I would advise trying to get renters on venmo or another platform for safety reasons. Collecting every week can be time consuming and we thought it was a matter of time before we got mugged. Screen your tenants, make sure it’s zoned properly and do regular room inspections. We did “room agreements” rather than leases so the tenants understood the rules. Getting insurance was a little tricky and expect the quote to be high. Message me if you want any other advice.