Rent by the Room?? Success? Fail??
Does anyone have experience renting by the room in Chattanooga? Not sure if anyone has had success doing this with big SFR in this area, but i've heard of people having massive success doing this in other markets. If yourself or anyone you know is/has done this let me know! curious of there is clientele for this.
@Cody Gagnon I've been pondering this in Chattanooga as well. Mainly student housing for UTC. My agent says she knows a few people who are doing this because the student housing offered at UTC isn't great for the price. I looked up the price for student housing a few months so if you're interested in going that route you can find it on UTC website and provide a rough framework for what the school charges.
@Wesley Thompson thanks for the input! 👍
@Cody Gagnon- I actually looked into this strategy within the UTC area earlier this year after hearing some podcast interviews from investors like @Todd Baldwin and others out in PNW. I spoke with some of the zoning and ordinance people and their recommendation was to focus in on properties zoned for boarding houses (R-3/R-4) if you plan to look for properties where you will not be living in it and has 3 or more bedrooms and renting to un-related tenants.
I didn't research too much into it because an STR opportunity in the smokies popped up and I jumped on that. I'm sure there's plenty of people doing it in our area but there is a HUGE need for it here in Chattanooga. I do plan on checking back into this soon because we want to add this strategy to our portfolio.
Quote from @Brandon Plombon:
I've done this and it works very well in college towns. Yes you have more expenses with repairs for college housing but I find the revenue/room easily justifies the expenses at least in my market place.
Hi Brandon, if I put 5 unrelated person in 1 house , what do you advise? is it worth it ? I dont live there and remotely out of state managing.
Quote from @Gaby Liu:I personally find it worth it but it fits my investment style. $500/bed is $2,500 in rent for 5 unrelated and my mortgage is $900? Run the numbers and see if it makes sense and worth it for what you are trying to accomplish.
Quote from @Brandon Plombon:
I've done this and it works very well in college towns. Yes you have more expenses with repairs for college housing but I find the revenue/room easily justifies the expenses at least in my market place.
Hi Brandon, if I put 5 unrelated person in 1 house , what do you advise? is it worth it ? I dont live there and remotely out of state managing.
Quote from @Brandon Plombon:
Quote from @Gaby Liu:I personally find it worth it but it fits my investment style. $500/bed is $2,500 in rent for 5 unrelated and my mortgage is $900? Run the numbers and see if it makes sense and worth it for what you are trying to accomplish.
Quote from @Brandon Plombon:
I've done this and it works very well in college towns. Yes you have more expenses with repairs for college housing but I find the revenue/room easily justifies the expenses at least in my market place.
Hi Brandon, if I put 5 unrelated person in 1 house , what do you advise? is it worth it ? I dont live there and remotely out of state managing.
my key concern is out of state remotely manage them, is it possible ? because if I buy a house near college in SoCal , those 3b2b house are 800k to over million dollars and return is negative cash flow. so I m thinking of do it OOS. did you manage yours OOS?