Best place to buy house to rent rooms to room mates (Dallas: extended stay, real estate)

[greenusa17]

Hope all are doing great! Thank you very much in advance.
I am thinking about buying house somewhere in DFW to live in mastered room and rent out other rooms to people. I am hoping the rental income will pay all bills including mortgage, real estate tax, HOA fees, maintenance cost, all utilities, etc. and may be make little profit every month. Another expectation is to resale this house at higher price in future or rent whole house to 1 family and generate profit.
I had few roommates in my nyc home for 6 months and have some experience. Main issue was cleanliness. Overall experience was good. Main benefits were rent income and social life.
What’s the best place to make it cost effective? Affordable house, high room rents, high demand for rooms, etc.
Does anyone have knowledge/experience regarding this?
What are advantages/disadvantages of having roommates?
Can you guys please share your knowledge on this?
I will sincerely appreciate all info.
Thank you very much

[TurtleCreek80]

That is not a realistic plan at all. Let's say you buy a $250k home. Your PITI without HOA is around $1450/mo assuming 20% down. Monthly bills could be $500+ especially with so many people using electricity, water, etc. So total costs around $2000/mo. Do you really think someone is going to pay $1k+ to rent ONE room in a shared house when they could rent their own apartment for the same amout? Unless these are good friends of yours, I just don't see this happening.

[CMC_TX]

Originally Posted by greenusa17

Hope all are doing great! Thank you very much in advance.
I am thinking about buying house somewhere in DFW to live in mastered room and rent out other rooms to people. I am hoping the rental income will pay all bills including mortgage, real estate tax, HOA fees, maintenance cost, all utilities, etc. and may be make little profit every month. Another expectation is to resale this house at higher price in future or rent whole house to 1 family and generate profit.
I had few roommates in my nyc home for 6 months and have some experience. Main issue was cleanliness. Overall experience was good. Main benefits were rent income and social life.
What’s the best place to make it cost effective? Affordable house, high room rents, high demand for rooms, etc.
Does anyone have knowledge/experience regarding this?
What are advantages/disadvantages of having roommates?
Can you guys please share your knowledge on this?
I will sincerely appreciate all info.
Thank you very much

Hi there - I have a relative who rented a room due to living in the area temporarily. I don't think it's reasonable for the renters to cover all of your expenses, but I do think it's realistic to find a renter or two to offset your expenses to easer your financial burden.

I think there are people out there, who, for a variety of reasons, are looking for a room with access to an entire house versus living in an apartment of extended stay hotel. Plenty of these types of listings under room shares on Craigslist.

If I were you, I would look into the area around Las Colinas or NW Plano. These areas have a large concentration of corporate campuses, and there are international workers who might have an interest in your arrangement.

[Angie682]

Renting rooms out in California may be common, but honestly I don't think that many people do that here. IMO it would be really creepy to have strangers living in your house.

[lepoisson]

Originally Posted by Angie682

Renting rooms out in California may be common, but honestly I don't think that many people do that here. IMO it would be really creepy to have strangers living in your house.

I came here to say the same thing. People rent rooms in California because housing is so expensive. Here in Texas, you can easily find a studio apartment for under $900/mo, so there is no reason to rent a room.

[MurphyPl1]

You can probably cross HOA dues off the expense list. I'd be very surprised if you could find one that allows you to operate a boarding house (a business) out of your single family home.

[OkieSoonerGuy]

Originally Posted by greenusa17

Hope all are doing great! Thank you very much in advance.
I am thinking about buying house somewhere in DFW to live in mastered room and rent out other rooms to people. I am hoping the rental income will pay all bills including mortgage, real estate tax, HOA fees, maintenance cost, all utilities, etc. and may be make little profit every month. Another expectation is to resale this house at higher price in future or rent whole house to 1 family and generate profit.
I had few roommates in my nyc home for 6 months and have some experience. Main issue was cleanliness. Overall experience was good. Main benefits were rent income and social life.
What’s the best place to make it cost effective? Affordable house, high room rents, high demand for rooms, etc.
Does anyone have knowledge/experience regarding this?
What are advantages/disadvantages of having roommates?
Can you guys please share your knowledge on this?
I will sincerely appreciate all info.
Thank you very much

I really don't see this scenario happening at all. You would more than likely have to get a four bedroom house to try to make this scenario work and there really aren't a whole lot of four bedroom homes that would be reasonable within Dallas proper and that would push you to some of the outlying suburbs. Additionally, having 4+ plus bedrooms would probably push the room rental to anywhere between 500-700 dollars and I would personally just rather get a 2-bedroom apartment, for roughly the same price, and only have to deal with one roommate then dealing with 3+ roommates.

[jdallas]

I knew one person who did this with a townhome around the knox/Henderson area. It lasted about a year before the owner realized the income was not enough to justify the loss of privacy and risk exposure.

[iberanon]

Don't. As others said, you'll end up with those that can't pass apartment background checks.

[TeamLynn]

Not impossible, but tough here.
If you want to do it you probably need to do it in a big city like Dallas or Fort Worth, maybe Arlington.
However you want to check to see if the cities allow it.
Many cities don't....so you're skirting the law in many cities.
Most HOA don't allow it....so you likely don't want to do it in a community with an HOA.
The trouble is with zoning.....single family zoning....and they define that.
You need to be in a place where the neighbors don't give a flip.
You go to a suburb with an HOA, I can almost guarantee you the neighbors will be all over you in a month or less.
They see the coming and going...they see the extra cars....and they don't like it...and will report you.