what does everyone think of rooming homes? The cashflow seems good but is there a lot of hassle along with having a rooming home?
Russ Whitney, in his book “Building Wealth”, covers this topic thoroughly. Should be at your library.
Regards,
Dave
I ‘might’ be able to shed light
We owned an old 13 unit motel in Prescott for some time… it was operated similar to a boarding house.
we split a few units & turned a storage room or 2 into units to make a total of 17 all with small dorm fridge & cheap microwaves
it created a nice cash flow & because it was on a busy corner, appreciated in spite of its age…
we rented about 1/2 on a monthly basis, most of the rest on a weekly rate with occasional nightly rentals
our occup. rate was never below 94% av for a year. We were 1 mile from the VA hospital, across the street from grocery store 2 blks from down town etc. - we accepted vouchers from churches & CSS SA etc
we have since sold it & reciev a nice monthly ck on the carryback of the 2nd mtg.
That is the good part of…
to me here’s the draw backs
most of the tenants were not the most desireable… while some of the old vets & some that just couldn’t pull their act together in life, stayed for years & were good tenants, the rest was a major hassel… even aside from the physical aspect cleaning repairs etc. I always felt like a den mother. I was extremely picky about cleanliness & was hard to find help so we did most ourselves
we needed a manager… always a hassel to find someone with a full brain that wanted to live there & work … several stole from us
most of the time I felt like a den mother… I set up ‘house rules’ in writing & became a real hard ass about it. There was a boarding house a few blocks away… she made money… she was old… crabby & pd a caretaker & well to live with her.
so I would seriously investigate
who will your tenants be?
who does the dirty work - laundry cleaning
Is the location going to appreciate?
For my way of thinking, I no longer want that hassel & prefer to make $$$ an easier way
jmho
but g/l & if you need hints, email me 