Any experience in the Greater Boston Area doing SFR?

Question

Hi everyone,

Has anyone had any experience househacking in the Greater Boston Area with single family rentals by the room?

I am considering my options for my first househack, and heard a BP podcast recently where someone bought a sfr in an expensive market and rented by the room to achieve some pretty wild cashflow. Given it sounds like it provides a much bigger challenge living with your tenants, but sounds like potentially a higher reward for your efforts.

Does anyone have any experience?

Thank you,

Kyle Curtin

Kyle Curtin · Answer

@Joseph DeCola

Thank you so much Joseph! That is amazing! That sounds like a very interesting experience and was extremely smart to refinance recently. Have you had any issues with anyone getting along with this type of model?

Thank you,

Kyle Curtin

Joseph DeCola · Answer

Hi Kyle,

I am currently in a single family in Malden that I purchased in 2018. Its a 3BR, 1.5 Bath and the basement was framed in with a subfloor on half of it.  I finished that side of the basement and made a 4th bedroom.  I have one bedroom and rent out the other 2 to guys similar age to myself.  One was from Craigslist and the other was a friend of my brothers from college.

It is important to screen any potential random room mates and establish house rules early on to avoid issues. Door locks for the bedrooms and a sorted mail bin by the front door help too.  I wrote all the conditions into the two lease contracts. One is a year term and the other is month to month.

Overall it is a good experience and it costs me about $800/month to live in my house as I make some improvements and get landlord experience.  Im past the 20% equity point now and refinanced when the rates dropped this February. I am looking for a multi family next on the north shore to do this all again.

Let me know if you have questions.

Joe DeCola

Joseph DeCola · Answer

@Kyle Curtin There have been a few small issues in regard to cleaning common areas which is why I recommend setting up some sort of responsibility rules.  One individual likes to spend more time in his room that he set up nicely to stay private and the other likes to be in the living room when at the house.  It helps to have enough space to isolate and get personal time when desired.  I do not allow pets or for them to have guests stay over as I do not know them and it can be uncomfortable.

This method is definitely doable if you manage it properly and don't mind having others living in the same house. The 2-3 years of being a little out of your comfort zone can get you in a much better financial position.  If you put less money down and get a 2-3 unit property and still have a housemate or 2 in your unit, that would be a great choice as well.