Rent by the room

[Logan Sierra]

Hey BP!

Are there any investors using rent by the room type strategies in the Tulsa, OK area? Exploring multiple possible exit strategies for BRRRR. Thanks!

[Joshua Bautista]

-how do leases work for a tenant renting by the room?

So when we started our first coliving, we made everybody sign a 6 month lease with the option for it to be month to month. {Fun fact: we actually tried STR by the rooms and we cash flowed like crazy...but we didn't realize that we needed a permit and so we had to stop it} We did alot of pre-qualification work to make sure the prospective tenants are trustworthy...but you are never sure 100% anyways. The house is a 6/3. Each room is $1000 with the garage studio being $1300 and master bedroom being $1600. Mortgage is 4000. We pay for utilities and its about 300

- is furniture included?

Yes, it is furnished.  But some tenants bring their own furnitures and we just removed whatever's in place (like bed) and put it in the garage.  They also bring their own kitchen appliances for everyone to use.  We all have a weekly meeting about what needs to be done and what needs work.  Everyone was pretty cordial.  

- do you restructure houses to fit more rooms?

  Yes the garage actually was converted into a big studio