Which are Better Investments? Rooming Houses or Small Multifamily Properties

I wanted to tackle the subject of whether rooming houses or small multifamily properties (duplex and quadplexes) make better investments. Special shoutout to Paul C (new subscriber) who posed the question recently.
In today's video I'll cover both types of properties and share which I prefer. Since I own both types of properties, I'll share what I like and dislike about each. Check it out!!
Follow the Property Pastor on social media channels to get more great real estate investing advice:
KZbin:
👌 / @thepropertypastor
Facebook:
👌 / thepropertypastor
Instagram:
👌 / thepropertypastor

[@jasonphilips4731]

I see your point on the quadplex and rooming house. I have a quadplex and rented 2 units as apts, and the 2 units as rooms. I prefer the rooms for the damage control aspect. The 2 unit apts I can not just walk in and address repairs before they get worse. The toilet was running and I wasn't notified by the tenant in the apt. I wouldn't have that issue if I run the whole building as rooms.

[@tracy3066]

How do rooming houses provide vacancy protection for you?

[@obie1coby]

This was surprising until I realized you bought a rooming house with only 4 beds. I remember you saying in another video you have limitations. So far in my area there are no limitations, so my 7 bedroom rooming house is absolutely stellar

[@ThePropertyPastor]

The main drawback in my market is the code restrictions of only 4 beds. If I could go up to 7 it wouldn't even be a debate. Thanks for tuning in and for commenting

[@baileyembry6057]

Great video. What are KPI’s for your business? What metrics do you measure to ensure your business/portfolio is running successfully?

[@ThePropertyPastor]

Great question. I monitor repairs, income, and utilities. I track average expenses and compare them month over month. In terms of income, I also track %of on time rent, time between filling vacancies, and % of rent collected in total. I go over a lot of this data with my property manager so that he stays on top of things. I also compare my actuals against what I projected when I brought the property to make sure that my assumptions are in a good range whenever I analyze new deals. I use stessa to keep track of income/expenses and run reports so that I can see how properties are performing over time. They have some really good tools to help you to quickly see how you compare to pro forma projections.

[@allball8774]

I have Rooming 🏘 Houses.... $600 a Room..... EBOOK TO MY BLUE PRINT..... COMING SOON...... @AllBoutCribs I love this Knowledge...... 😊 Thanks

[@dirtyboysadventures9878]

I think each has their own benefits. Depends own on who you rent to and how much each home cost

[@ThePropertyPastor]

Absolutely. I like both investment types. If I could do more than 4 rooms in my market I would own a lot more rooming houses.