Rent by the room

[Pete Sanchez]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $260,000
Cash invested: $50,000

Single family home - rent by the room

What made you interested in investing in this type of deal?

Watched others profit from this type of real estate investment

How did you find this deal and how did you negotiate it?

House hacked and copied the business model from other's in the same arena.

How did you finance this deal?

House hacked. Purchased the home with a VA loan 4 years prior converting it into a rental.

How did you add value to the deal?

Added value by replacing the windows/paint. Provide a fully furnished rent by the room house (4 bedroom).

What was the outcome?

It was a slow start but we now average $6,000 cash flow per month.

Lessons learned? Challenges?

Had to be creative on advertising the home as a rent by the room.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I speak with a lot of local agents but do not use them to purchase homes. I purchase homes FSBO.