Rental Property Investor · Albuquerque, NM · Member since 2017 · 8 posts · 0 votes
Hey Guys,
I have a question about renting out rooms specifically in Albuquerque New Mexico. I’m looking for advice from someone who has experience renting in the Albuquerque area.
My goal is to acquire a single family home under an FHA loan in the NE Heights here in Albuquerque. My question is should I rent out the spare bedrooms? Is there even a market to rent out bedrooms in Albuquerque? I know this would be a great option if I were to buy a property near UNM, because than I could rent to students.
My concern is that there won’t be a demand for people to rent rooms, since studios and one bedroom apartments in Albuquerque are so cheap. The price I’d be trying to charge is 500-600 a room. However for around that same price, someone can have an entire apartment to themselves.
Investor · Santa Fe, NM · Member since 2016 · 221 posts · 152 votes
6y
@Lewis Kutschbach welcome to BP. Great to see another investor in Albuquerque!
Have you checked on Craigslist for what rooms are renting for? The challenge you have is that rent is cheap. I have 1 bedroom apartments in Nob Hill that rent for ~$600.
As @Khoi Le said, maybe a small MF would work better.
Real Estate Agent · Hawai’i NJ, NM · Member since 2019 · 13 posts · 13 votes
6y
I agree with the other two replies. A multifamily is pretty inexpensive in ABQ, and rent is really cheap so I doubt anyone would rent a room at that price. Checking Craigslist was a great idea. If you already have you heart set on a SFH, look for one with a casita, or, after this pandemic is over, you can try Airbnbing your extra rooms. However, we have no idea how long this pandemic and its travel restrictions may last. We also dont know what the future of college will be; it may turn into mostly online learning, greatly reducing the amount of students looking for rooms. There are many duplexes, triplexes, and even affordable fourplexes in the NE ABQ area.
Rental Property Investor · Albuquerque, NM · Member since 2017 · 8 posts · 0 votes
6y
@Khoi Le Thanks for the advice! I did forget to mention that I have a 10 month old daughter that’s stays with me. So I would like to find a place in a very nice area of town, so I can attract decent tenants.
The UNM area would be great! I just don’t necessarily want frat boys living in the house with me and my little girl. If i was living alone, I would absolutely be looking in that area!
Rental Property Investor · Albuquerque, NM · Member since 2017 · 8 posts · 0 votes
6y
@Hope Hatton very true! This pandemic has changed a lot of things, but I feel that now is the best time to acquire real estate. Interest rates are fairly low and real estate is at a decent price too!