It’s probably not too surprising to most people that rooming house cashflow is higher than the cashflow you might receive from a single family home rental.
What might be surprising is how much higher the rooming house cashflow can be.
Rooming Houses vs Single Family Rentals
Now to be fair the numbers I use in the following video are based approximately on local pricing in my area and local rents. Depending on the local economy, the demand, the location of the property, local regulations and even your competition prices for rents vary around the world.
I’ve had people from different parts of the country or world tell me they will stay with me for only a week telling me my prices are way too high and then they end up staying for months as they discover they’re quite fair for the area.
I’ve also talked with landlords who can only charge half as much rent on a monthly basis, yet they still make money! And it’s because the property values are also less than half as much.
Prices and rents vary and while I tried to use a realistic mortgage rate that should make this video be reasonably accurate for several years (I based the mortgages on 20% down and 3% interest rates). So while the rooming house cashflow numbers I share might be valid here, they may be much higher or much lower where you are.
So having said that also compare the other rents locally as well. And now, here’s the video.
Rooming House Cashflow
Did the video give you an appreciation for what’s possible cash flow wise from a rooming house property?
Whether it did or not, it might provide soem food for thought as to whether you could make a property like this work in your area.
If you already own a rooming house could you leave a comment below with a comparison for your property and maybe an idea of where you’re located?
If you don’t have a rooming house or any houses for that matter, maybe just leave a comment letting us know what an extra $1,000 or $2,000 or even more in cash flow could do for your life?
Looking forward to your feedback.