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?
If you have home owner’s insurance and require roommates to get renter’s insurance that should be sufficient I believe.