Posted by Devon (Buffalo) on February 16, 2002 at 15:07:32:
ny
rooming house pro’s and con’s - Posted by mike golden
Posted by mike golden on February 15, 2002 at 18:09:33:
has anyone had experience with a (8-room) rooming house?
Re: rooming house pro’s and con’s - Posted by Brent_IL
Posted by Brent_IL on February 15, 2002 at 21:09:22:
I found an old post in the archives. It’s about one man’s approach to rooming house management. I type too slowly to re-do it.
http://www.creonline.com/wwwboard/messages/arc_2001/arc_15/15162.html
Re: rooming house pro’s and con’s - Posted by phil fernandez
Posted by phil fernandez on February 15, 2002 at 20:24:25:
Mike,
Do you want an investment or do you want a JOB. Rooming houses : expect a very very intensive management headache. The potential cashflow will entice you into doing the deal. Not until you are working the rooming house full time will you realize you made a big mistake.
Re: rooming house pro’s and con’s - Posted by GL(ON)
Posted by GL(ON) on February 15, 2002 at 18:51:30:
The good part is the big cashflow and profit. The downside is that it’s management intensive.
If you are lucky enough to get a good live in manager it helps but you are still going to have to step lively to get your rent, in many cases.
It depends on the clientele. A local factory had a program where young engineering students got experience by working in the factory for several months as part of their schooling. They all stayed at a rooming house nearby. The owner never had a vacancy problem and always got his rent, and the tenants were well behaved if you overlook the rock and roll and occasional beer bust, which bothered nobody because all the other tenants were the same age.
So look at the neighborhood and clientele. Decide if the money is worth the work. And don’t pay too much of a premium over a similar size house that isn’t a rooming house. You might get it for the same price as an ordinary house or less, as they can be hard to sell.
I had a rooming house when I started out and so have many others. It is a good way to get cash flow but eventually you move on to less management intensive investments.
its a 24/7 business not RE play (NT) - Posted by David Krulac
Posted by David Krulac on February 15, 2002 at 18:28:13:
`