Rent room by room in Las Vegas remotely managing
I have a 5b3b brand new built house in Las Vegas gated community is going to close in a few days, 2 hospital campus and a 3 year college near by, (HOA requires 90 days minimum stay) , I am debating what would be a better option;
A:Renting out the whole place as one price $2500 to long term rental , no need to furnish. hands off, but the cash flow is negative $200/month. COC negative 1.5%
Pros: less work , pay one time commission to put tenant in place, easy for me to remotely manage , less turnover. no need to furnish
Cons: negative cash flow, 200 a month that is $2400 a year.
B: Doing it room by room, to rent it out 5 different people in one house, $900-1100/room, total gross income is $4000-4500, Cash flow will be $1000-1300/month. COC is about 7%
Pros: Cash flow is positive
Cons:
1,Furnish the house cost money and time ,if doesn't work for MTR , I have to un-furnish it to switch back to LTR.
2,It is a big house , not sure if it is easy to put 5 traveling nurses in the house at one time, if not ,then I need to add other different group of people in the house , potential raise problem ? what if tenant fight each other in the house or have room break in and sue the landlord?
I called insurance company when they hear I rent out room by room for different people they don't have policy to cover that. al
So , Since I don't live in Vegas ,So I m managing out of state , I really debating what should I do with this house, any advise is appreciated, and I need to make decision soon to go which route.
thank you !