I'm considerinf to buy a singlefamily house for rental. I've heard that some savy investors splitted the rooms in a single property to multiple tenants to maximize returns.
I'd love to do this too. Is there any conditions to be considered before buying property for this strategy in terms of locations, sizes, and sreuctures of the house?
Hi @Minsu Kim , while this can be very profitable and can also be a huge PITA when tenants don't claim ownership over who broke what.
Bigger than that is the potential ordinances or laws the town that your property is located in has. For example, in some Connecticut towns, there are zoning laws that prevent 4 or more people of different last names (basically saying different families) living together in one home. The goals of these laws are to prevent rooming houses from popping up all over town.
Ideally a 2-3 bedroom house near access to public transportation / infrastructure have been the easiest to rent.
You have to check to ensure zoning allows this. Some cities have occupancy limits that say you can't put more than two unrelated people in a single home. Every sleeping area must meet egress requirements. You need a good agreement about individual space and shared common space. It can definitely make more money, but it will take more work.