Post house hack; renting rooms

3 Replies

I’ve been house hacking a 3bd/1b unit in a duplex for a little over 2 years now ( 250k tax free). And I’m focusing on doing the same on another property soon. I’ve been able to get 2400 renting out each unit room by room instead of as a unit (800x3 vs 1800). I’ve been living in the duplex so it hasn’t been a problem. Last time a Tenant left in the other unit I gave them $100 each to find a new roommate and in a week they got one (individual leases per bedroom). I’m wondering if anyone has had success renting out room by room while they don’t live at the property? I realize this is more then what a lot of apartments rent for in cheaper areas of the country, this is the DC area and 800xroom is below market. I believe the DC area is #2 among cities with adult roommates next to San Fran so this may not apply to a lot of people.

@Michael N.

This is going on all over here in NYC. Nothing new. Smart way to keep costs low for the tenants while still cash flowing tremendously. Keep up the good work. Do the same for the other properties you plan on acquiring in the DC area. You don't have to live at the property to rent out rooms. If you are going to live a fair distance (like in another state) from the property then I would suggest you get a Property Management Company involved. However, if you only live 1 or 2 hours drive from the property, try to still manage it yourself so you can pocket the management fees.

By the way, Awesome thing you did there by giving the tenants an incentive to quickly find a new roommate. I may do that if I start renting out rooms.

Michael, what type of insurance policy  did you have in the scenario where you rented out rooms  and live in  1 unit?  I have a 6 bedroom house in DC and want to rent out five of the bedrooms individually  and stay in one of the bedrooms myself. I'm having difficulty finding insurance for this arrangement.  Do you have any suggestions?