Buy House as Investment?
Question: Without thinking to resell the house for profit. Is buying a house then
>>rent
>>>each rooms out a good investment idea?
>>>Anyone gives some calculation here?
>>figure out what the mortgage including property tax, etc will be. could
you
>>charge enough per room to make it worthwhile?
Also, find out if it’s legal. In many (most?) towns, there’s a limit to the number of unrelated people living in one house.
Answer: I have looked into this too. I have noticed that one apparent upside to renting rooms from a house as opposed to renting apartment, is that often the is less rent control law attached. Owners often have more liberty to get rid of people with a mere 30 day notice. And in some places there is no rent control law protecting tenants renting rooms from haveing there rent increased beyond what rent control limits are for rent controlled apartments.
On the other hand, the type of renter can be a bit different. They could be people going to school, people who have had to vacate there normal dwelling on a temporary basis, people who have bad credit. So there may be higher turn over of renters of rooms in a house than apartments. The costs involved with marketing available rooms, cost of emty rooms (no rent), more people that may not pay rent.
I suppose with a good background check of potential renters, renters that have been referred by good sources, and substantial deposits can mitigate some costs.
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