I am very new to real estate investing and trying to start out from wholesaling.
I went to take a look at a property today which is a rooming house. It has total of 16 rooms, with only some having private kitchen and baths. Most of the rooms has shared baths and no kitchen.
It was very dirty and smelly. And when I searched online, article about having bed bug problem on the owners' properties came up, so it might still have bed bug problem.
But people live there, which I guess can be said livable condition.
How do I come up with an offering price? I would assume I will have to take into consideration getting rid of infestation problem. Do I also take into consideration the cost to clean up the entire place or cleaning up perfectly doesn't matter since poeple are willing to live there in current condition?
Please give me an idea of what to include in the flipping cost, so I can come up with an offer price.
Thank you very much.
I wouldn't take on a rooming house as my first ws deal...
Your post made me start scratching lol
hi Alice- did you try it?
My husband and I are starting a rooming house, monthly rentals , and would love to hear what you've learned. Not many folks have them anymore.
Nancy I have 3 multifamily rooming houses (28 rooms) and it is Great!!! 15 years experience and I would only do monthly rentals. Someone moves out you still have rent from the remaining occupied rooms. I have coin operated washer/dryers which give me even more income. Weekly rentals is too time consuming and they always have an excuse that "I will double up next week" most of the time that does not happen. Good Luck!
@Jeff Milligan hey Jeff are you still in the rooming house business?