I’ve browsed some of the posts in the forum and I often see posts for what I call the “usual” 3-2-2 (three bedrooms, 2 baths) single family homes, and some posts with duplex deals with a few numbers asking “Is this a good deal”?
I was introduced to a strategy some time ago (actually about 25 years ago) by a man many of you may have heard of, but most probably not. His name was Charles J. Givens and in my opinion, he was a walking encyclopedia of “thinking outside the box”.
Lets face it. We all (well, most of us) want to live in nice prestigious houses in nice prestigious neighborhoods and communities, who doesn’t? Well, this also includes renters. The problem is, some of these homes are $500,000 and up. The area where I live (Ocean Isle Beach, NC) an ocean front LOT is over 1.2 million, and that is without a house on it, just the dirt.
So how do you buy a 5 bedroom 5 bath home with about 4500 to 6000 square feet living area or more that costs over half a million dollars? His answer was simple. Think outside the box. Buy the home, rent the rooms, not the house. If you bought a $500,000 house with 5 bedrooms and 5 baths in an upscale neighborhood, you could reasonably expect to rent the rooms out at least $1000 each per month, which is 5k per month, which is 60k per year. He said, “Think of it as your not buying just a house…but a mini motel”.
This is just an idea for those looking to step up to buying more expensive homes. :beer