Rent By Room House Hack in NC
Hello BiggerPockets Family! I'm looking to get my third deal using my VA loan and was highly considering the "Rent by room" strategy. Todd Baldwin and a close friend had a big influence on my decision. I was just curious if anyone in eastern North Carolina had any experience with this method?!
Hi Ty - I am out of Raleigh and I am househacking this way. It has been an immense success. If you are looking out of Greenville you might consider Airbnb'ing the rooms instead (either short-term or mid-term) of renting by the room long-term. You would be in a good position to cater to travel nurses and students who just need a few months out of the year and are willing to pay much higher rents (in my experience.. nearly double) versus traditional long-term tenants in this scenario would.
Quote from @Katherine Serrell:
Hi Ty - I am out of Raleigh and I am househacking this way. It has been an immense success. If you are looking out of Greenville you might consider Airbnb'ing the rooms instead (either short-term or mid-term) of renting by the room long-term. You would be in a good position to cater to travel nurses and students who just need a few months out of the year and are willing to pay much higher rents (in my experience.. nearly double) versus traditional long-term tenants in this scenario would.
Hey Katherine, I'm currently working in Raleigh and was looking at the Clayton and Greenville market. Thank you for your help!
Incredible opportunity around Raleigh. So many rentals are unaffordable. Studios are in the $800s and 1 BRs are over $1,000 in most cases. Best to find a property that has 1 bathroom/resident to minimize the headache and arguments. Alternatively, build in the cost of a cleaner coming to handle common area when running your numbers...helps the arguments over hair on the bathroom vanity + great marketing of amenities you offer (and makes your home clean for you if/while you're living in it on the tenants' dime).
Just be conscious of the tenant base/mix, especially if you're living there. A night nurse might seem like a great idea since they'll be at work a lot and less stress on the property but if they sleep during the day and you have a conference call you need to talk on or have a pet, this can cause rifts in the relationship and viability of the tenant quickly.
Otherwise, just make sure to do full background/credit checks and leases on the front-end, be a friend/roommate whenever you can, and a landlord ONLY WHEN NEEDED.
Quote from @Pat Lulewicz:
Incredible opportunity around Raleigh. So many rentals are unaffordable. Studios are in the $800s and 1 BRs are over $1,000 in most cases. Best to find a property that has 1 bathroom/resident to minimize the headache and arguments. Alternatively, build in the cost of a cleaner coming to handle common area when running your numbers...helps the arguments over hair on the bathroom vanity + great marketing of amenities you offer (and makes your home clean for you if/while you're living in it on the tenants' dime).
Just be conscious of the tenant base/mix, especially if you're living there. A night nurse might seem like a great idea since they'll be at work a lot and less stress on the property but if they sleep during the day and you have a conference call you need to talk on or have a pet, this can cause rifts in the relationship and viability of the tenant quickly.
Otherwise, just make sure to do full background/credit checks and leases on the front-end, be a friend/roommate whenever you can, and a landlord ONLY WHEN NEEDED.
Thanks Pat!