Dr. Paula

In this interview with Dr. Paula, we explore a strategy that we haven't explored in prior Summits:  the rent-by-the room strategy.

This is a strategy where you rent a property by the room. So you buy, let's say a 5 bedroom house, and rent each room individually. So this means five different leases for each bedroom.

Why would anyone pursue this strategy? Well, according to Paula, this is a great way to maximize your cashflow. You can further add to that cashflow by furnishing it. Furnishing doesn't have to break the bank like it might for a luxury short-term rental, especially if you're targeting younger tenants, people who are in college or graduate school. 

Paula also shares that not many people offer rooms to rent, so the demand is extremely high. It's a great balance because it's cheaper for a prospective tenant to rent by the room, but for the owner of the property, you can get more overall for a property than renting the property as a whole.

Though we didn't cover this in the interview, rent-by-the-room can potentially be an effective strategy for achieving cashflow in a high cost of living market. 

So for those of you who think it's "impossible" to cashflow in a high cost-of-living market, maybe you'll start to see the possibilities after you watch this interview!

Here is a link to several articles that we refer to in this video:

Deal of the Week: Flipping Houses

What Makes a Good Rental Property Investment? (this article covers the 1% rule in detail)