Student housing (per room rentals) / house hacking?

Question

I'm thinking of buying a 4-5 BR property near Bridgeport or Evanston in the 300k range, and would consider other areas too if they're close to Universities. My plan is to turn the house into student housing and rent on a per-room basis. I would live in the property at first.

Does anyone have experience house hacking like this? I have run a house before as well as an apartment complex, so I'm aware of the overhead / maintenance stuff -- looking for more specific experience with students or with house hacking in Chicago.

ROI looks to be the highest with this setup, since rooms are renting from 300-600 each in these areas for students. As an investor of course I'm looking for my highest ROI, and i'm still early in my analysis.

Thanks in advance!

Larry Turowski · Answer

@Charlie Van Norman I don't do student housing but it does sound like an excellent idea as long as you are in the age range of the students.  I have considered it, though.  It does, indeed, provide one of the best ROI's and if you choose your student tenants carefully it can be pretty low maintenance and low vacancy since those leaving will often ask their friends if they want the room.

It sounds like you know what you are doing.  Go for it.

Account Closed · Answer

I’ve been considering this too, it seems like a great idea in terms of ROI. I think it depends a lot on the school, as in size and type of school. Needs to have a large population, and shouldn’t be known for partying, but for its academics. Plenty to consider, but definitely very interesting especially as a house hack

Charlie Van Norman · Answer

Update: I did an experiment by listing 3 Craigslist ads for my house (one in Evanston, Bridgeport, and Woodlawn):

https://post.craigslist.org/u/To_X34CL6RGtVIXhQdSI...Based on only one response after 4 days for all 3 ads, I am not enthusiastic about the appeal of this type of house.