What to look for in a good rent-by-room propertyLook for these features:4–5 bedroom layout (or ability to add bedrooms)Big living room / dining roomAt least 2 bathroomsParking for multiple carsSafe area (huge for co-living)Split floor plan or good separationLow HOA restrictionsAbility to add locks to bedroom doorsThe layout is way more important than fancy finishes.

Perfected Lighting (This is #1 for a reason)Bad lighting makes even a good renovation feel cheap.I upgrade every room with:4–6 recessed LEDs (3000K or 4000K depending on vibe)Bright vanity lightsA clean, modern dining chandelierBright homes photograph better, show better, and feel newer.2.

While we have ~$25k set aside for this purpose to use in some capacity, we aren't sure whether we should try to make a play for something local in Greater Austin (given the challenges cash-flowing something and the depreciation we're seeing) or to look somewhere like Shreveport, LA where the rest of my family live (and could potentially help with property management).Unfortunately, something like a HELOC isn't on the table, as we bought our house in July 2021 and have seen significant depreciation since (although we have a 2.75% interest rate, which is nice!). 

The Restaurant Is Not Automatically an AssetA lot of people think “restaurant attached” = built-in dining for residents.

I’m not bringing any money to the table. 

That’s safe, predictable, and takes interest-rate risk off the table. 

I brought the deal to the table What made you interested in investing in this type of deal?

I was about to close on my first DSCR loan but walked away from the closing table when presented with the note and mortgage.

If house hacking is off the table, the two paths I see work most often are:partnering with someone who has capital but needs hustle, ortaking on value-add projects where sweat equity creates the spread (small BRRRRs or light flips).If I were starting over, I’d focus on learning how to find and evaluate deals.

Give the appearance of a SFR - you need a living room/dining room space ( don't convert them just yet into rooms)3.