Rooming House or Lodging House

[Bill Fennelly]

I am considering buying a licensed rooming house in my area, 13 units plus on site manager's unit, average of $150 / unit per week, 100% occupied, real strong cash flow with $4,650 positive cash a month, I would welcome and appreciate any comments on people's experiences with this type of property, thanks in advance.

[Parker Dresser]

There are many things which I would say are negatives:

1) poorer quality of tenant

2) high turnover

3) usually older building

4) requires license from the city

5) requires sprinkler system, fire extinguishers etc.

6) mid month rent collections

7) extra effort to collect partial rent from subsidized entities

8) some managers may not want to manage this type of property

That's a good start.