How Renting By The Room Doubled This Investor's Rental Income | Best Deal Ever Show

[@jgg204]

In my city, some companies are taking it one step further and each bedroom gets its own private bathroom. the only living spaces shared are living room and kitchen. This eliminates the #1 complaint about boarding homes (ie rooming houses)....and that's sharing a bathroom. It involves more renovation and more cost, however it allows you to charge MORE per month. So while you may get $550/mo doing it this way, giving each bedroom its own bathroom shoots it up to $800/mo in my city

[@getpoked2498]

That's brilliant actually

[@frankiegunnz8066]

What city?

[@johnsavchak8202]

I like it!

[@carlosvillalta9974]

What city if I may ask

[@daisynails5441]

Wat city

[@meechiemishae4642]

Good info, my uncle has been doing this since 2009. Where we're from, they call them rooming houses. I was surprised to see how many people were comfortable sharing living spaces. Great concept!!

[@anthonylawson7022]

your uncle is a smart guy! I've been doing this for the last 3 years myself great way to have cash flow

[@meechiemishae4642]

@@anthonylawson7022 that's awesome!!! When I finally get into REI, I'm definitely going to give it a shot!

[@anthonylawson7022]

@@meechiemishae4642 absolutely! best of luck on your journey into real estate

[@blackpinkslave9969]

Doing this right now and it's the best way to do it. You get more money and worry less about the eventual miss payment by one of the tenants.

[@realestatemotivator]

how did you advertise your rooms?

[@anthonylawson7022]

I've been renting rooms for the last 3 years. The cash flow is insane!

[@coreyedwards2886]

The first thing that popped into my head was "who keeps the common areas clean?" So how do you handle it with your room rentals? Are the tenants responsible for keeping the kitchen and bathrooms clean or do you use a cleaning service for that? That seems like a NIGHTMARE if you're depending on multiple people agreeing to keep your asset clean.

[@anthonylawson7022]

@@coreyedwards2886 I have someone staying there take care of everything and charge less rent so it works out. It can be a nightmare if someone does not have a system

[@brandonpowell3237]

hey im interested in buying a new house and renting out rooms. How has your experience been and do you have any insight on it. Could you dm me about it. much appreciated

[@mrbced21]

How are rooms rented as far as marketing? Property manager’s, ads, etc?? Looking to rent out individual rooms vice the house to max cash flow

[@getpoked2498]

Yeah, how do you market this? Facebook(social medias) or does it go into our real estate applications?

[@gpzheng]

This is a common practice in the Chinese community where someone buys a house and rent out any extra rooms, individually , to ppl in the community. Definitely great on cash-on-cash... It seems like the key to scale this concept is in GREAT management, cleaning company, n acute screening process. I wonder what part of a city would be considered IDEAL spot to apply this method of housing

[@CocktailsByJay]

Good information. I am in California and I own several rentals and apartments. I’m exploring the model of renting rooms instead of stand renting an entire home or dwelling to a single family or tenant. Good tips for managing and avoiding pitfalls

[@carloscabrera8591]

Im in California as well and prices are really high making it hard to cashflow so renting by the room is the strategy I am aiming for.

[@derrecktaylor8817]

OK, I thought this was some sort of new, cutting edge real estate niche. There just boarding houses (or rooming houses), found in any hood USA.

[@Osay1216]

It's Marketing sell you the same thing by changing the name

[@michaelk969]

But since investors can improve their ROI they will be willing to invest in rougher neighborhoods which are now dominated by section-8 which typically does not incentivize the properties enough for landlords. They place all these demands on the landlord and in the end they disincentivize the section-8 program because the return is too low. If this catches on section-8 will need to compete for landlords.

[@RonalValerio]

Can you teach more on how to create the membership instead of make them become a tenant?

[@kar3n35]

Im in a 4 bedroom home and im planing on building a separete unit. I met some single ladys from church. I would be willing to rent the house by room and i would like to live in a separate unit in same property.

[@imtechies6938]

what i like was the fact hes closer to hotels i wonder does that apply to Cali

[@marshallgerston4809]

Great info but would be too much to ask to have your guest speak into that cool mic so we could actually hear it clearly?

[@EpicRealEstate]

Hey Ken! Good to see you bud.

[@CaseyBurnsInvesting]

6:40 My nightmare. Terrible tenants.

[@RERK8]

PadSplit is a great way to build an open market around rooming housing which are not easy to find. Totally agree with Furman that this really addresses the affordable housing crisis in the US and is a game changer.

[@zeroxan]

yea, i wouldn't be so sure about that. there model is scary.

[@gloriafb46]

Can you elaborate? What’s scary about it to you?

[@FS02012]

Make sure you lock your own bedroom doors tenants! This way you cannot say someone stole your expensive items. And when you leave out back their door lock!

[@neilazeez101]

wow! this was actually really helpful thank you for recording this for us!

[@Clarinda787]

This sounds like the old-fashioned rooming houses from 100 years ago. I guess everything old is new again.

[@gotifly4477]

we dont invent anything new, we just re-invent and improve the process

[@marcduchamp5512]

What about the sound proofing insulation. We don’t necessarily wanna hear what the next door is doing in their bedroom or do we?

[@quangvu4361]

What is the rate for renting room and board in California now a day sir ?

[@marcduchamp5512]

In Japan there are capsule hotels with shared shower and kitchen. Dunno why we don’t have such mini affordable living space for solo renters

[@johnsavchak8202]

That's a good question...I did a stint in the Marines and our barracks design would have been great for this idea!

[@mt-nv4jd]

If you build it, they will come.

[@jonardlopez5019]

I am planning on renting my rooms individually (5 bedrooms ) is it legal to keep one of the rooms as my office while I live in a different house?

[@crand20033]

It's against civil code to do that. It's better if you live in the same house as your primary residence. That way they can't do anything about it.

[@Osay1216]

I have a shared housing program and it is working well

[@realestatemotivator]

how do you advertise rooms for rent?

[@Osay1216]

@@realestatemotivator Craiglist, Roomster, and Zillow but Zillow won't let you use the the word room so use shared living.

[@creolemclie8034]

This was definitely a good listen

[@BenjaminZeronsa]

Thought he made really good points from converting section 8 to padsplit. Anyone else done the same?

[@howardmontaque8147]

How do your buy your next 3 to 4 homes in a year.?This seems hard to scale.

[@kenkarentwo9946]

listen to Bigger pockets pod cast - they explain - it can be quite easy

[@matthewcanton6322]

Great pod🎉

[@MattBuysHouse]

i missed it, are you renting a furnished room by the week , month or year? f (but payment is weekly?)

[@cryptodwayne5174]

It's weekly on a per month cost basis so if they get paid each week it's 150 if they get paid every two weeks it's 300 or basically 600 a month

[@getpoked2498]

Weekly? Wouldn't that be horrible having to worry whether they'll move any week?

[@JJO117]

Funny how this is a hack my mum has been doing this since the early 2000. Love the Military background. I'm coming out of the Australian Army Infantry bought my first house and looking for more business opportunities.

[@jeffjayewilliams6667]

Thanks. Love the value

[@kenyonbissett3512]

Plus sweet old lady might have been intimidated. Even by family.

[@howardmontaque8147]

How do you deal with limited parking?

[@sarge1077]

The lot size around the property is key to making it work so look for larger lot deals where you can add more parking by adding gravel

[@Star-yk5vk]

I have an 8 unit and have parking for five cars and the opportunity to add additional parking because of the large lot.

[@talus007]

Parking must be a nightmare

[@syedreza8722]

Starts at 2:00

[@mberge1]

With 6 bedrooms, do they all use one kitchen? Seems kind of crowded.

[@Davidsweirdness]

I would say depending on the square footage i have a 3100 sq ft two story I don't think it'd be to crowded

[@grocerysmart]

Where do they take meals? Do all rooms have kitchenettes? Do they share a bathroom?

[@He_is_derione]

It’s like living with a roommate

[@sarge1077]

Balance bathrooms are also a main thing 4 bed 2 bath ex

[@TheeBadmomclub]

This really works

[@Mississippislim70]

This is Best in college town

[@kea5763]

We don't care where you two live. LOL Pad Split is the new term for Housemates in a shared residential dwelling, sorta like college? Except YOU & your wife n kids DO NOT LIVE THERE... HOW ON EARTH DO YOU PREVENT ANGRY HOUSEMATE FROM FIGHTING....UGH! Best to be furnished, hire a house cleaner, and hopefully an airtight rental agreement.

[@He_is_derione]

They been doing this in the hood for years. Most of the time it’s low income people who have to work 24/7 just to make that weekly rent and don’t have time to be home.

[@Star-yk5vk]

What about insurance?

[@quentonmullins-ky5ye]

How do you handle climate control?

[@josephdouglas4644]

Woah

[@toysquiroz1830]

coronona virus ? no one is paying rent right now 🤔🤔🤔🤔🤔🤔

[@He_is_derione]

Essential workers are

[@Star-yk5vk]

I started mine during the Pandemic, and it is renting well