DFW Rent by the Room Strategy

[Harrison Sharp]

Hi all, 

Been on BP for awhile, have a house hack in Plano and a second property in OKC under my belt right now.  I'm currently working on getting my sales license before my next deal next year.  With that being said, is anyone having success in the DFW market right now doing rent by the room? If you can get a 4/2 or 5/3 in a city like Plano or Carrolton and can rent out by the bedroom it makes the numbers work a lot better. That's what i'm targeting since I get can in with 5% down and keep cash in my pocket.  I'd love to get a few contacts and pick your brain before I go about on this strategy for anyone who has done it successfully. 

Harrison 

[Bruce Lynn]

Don't buy in a neighborhood with HOA in places like Plano. Try to buy in places like Dallas or some other city that might be more friendly to that. You don't want to get it shut down when the neighbors complain....and in someplace like Plano if you buy a 5 bedroom and rent to 5 different unrelated people with 5 cars, they are going to complain.

I'd have a board certified real estate attorney draw up a lease for you if you're renting bedrooms.  I don't think there are promulgated forms for that.   You might also check with your insurance company to see how they cover you for bad situations like sexual assault or theft between tenants.  Your standard umbrella policy may not cover you if you are renting to unrelated parties under the same roof.