March 2010 April 2010 May 2010 June 2010 July 2010
August 2010
September 2010 October 2010
November 2010
December 2010 January 2011 February 2011 March 2011 April 2011 May 2011 June 2011 July 2011 August 2011 September 2011 October 2011 November 2011 December 2011 January 2012 February 2012 March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 April 2013 May 2013 June 2013 July 2013 August 2013 September 2013 October 2013 November 2013 December 2013 January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016 April 2016 May 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 January 2017 February 2017 March 2017 April 2017 May 2017 June 2017 July 2017 August 2017 September 2017 October 2017 November 2017 December 2017 January 2018 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 April 2019 May 2019 June 2019 July 2019 August 2019 September 2019 October 2019 November 2019 December 2019 January 2020 February 2020 March 2020 April 2020 May 2020 June 2020 July 2020 August 2020 September 2020 October 2020 November 2020 December 2020 January 2021 February 2021 March 2021 April 2021 May 2021 June 2021 July 2021 August 2021 September 2021 October 2021 November 2021 December 2021 January 2022 February 2022 March 2022 April 2022 May 2022 June 2022 July 2022 August 2022 September 2022 October 2022 November 2022 December 2022 January 2023 February 2023 March 2023 April 2023 May 2023 June 2023 July 2023 August 2023 September 2023 October 2023 November 2023 December 2023 January 2024 February 2024 March 2024 April 2024 May 2024 June 2024 July 2024 August 2024 September 2024 October 2024
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
31
News Every Day |

A real-estate investor says he's cracked the code to producing 'at least $1,000 of positive cash flow every month,' but his rent-by-the-room strategy isn't for everyone

Peter Keane-Rivera says he brings in about $135,000 a year from his rental properties.
  • Peter Keane-Rivera owns single-family homes that he rents by the room to maximize cash flow.
  • It's a more hands-on strategy but offers higher returns and diversified cash flow.
  • Some of the challenges include finding compatible tenants, but the extra effort is worth it to him.

Peter Keane-Rivera owns two single-family homes in the greater Seattle area, but he has nine tenants paying rent.

His investment strategy is to "buy the biggest house you can and fill up all the rooms with paying tenants," the 32-year-old told Business Insider. "And, if you can, add some value to the house as you go along — you don't have to do it all at once — then refinance, either to a lower rate or a cash-out, and use that money to do it again."

Keane-Rivera purchased his first home — a 3-bedroom that he converted into a 4-bedroom — in 2017, and his second — a five-bedroom with an unfinished mother-in-law suite — in 2019. As of 2024, he has four long-term tenants in the first home. He lives in the second home, has four long-term tenants in the other bedrooms, and converted the mother-in-law suite into a short-term vacation rental.

He's shopping around for a third home, as his rent-by-the-room strategy has generated healthy cash flow.

"I know how to upgrade properties to make them produce at least $1,000 of positive cash flow every month," said Keane-Rivera. The rule of thumb that works for him is: "You need the number of rooms to be around six to seven when your property value is around $600,000 to $700,000, and you're looking at a 6.5% interest rate."

There are other factors, such as "the nature and the layout of the house, where it's located, and what improvements can be made," he added.

Keane-Rivera says he brings in between $849 and $1,450 monthly per room. That doesn't include his Airbnb unit, which is the most lucrative and averages $2,666 a month.

His rental income would look a lot different if he listed his single-family homes as one unit, he said: "For instance, if I just rented out my rental property that I don't live in, I'd probably get $900 to $1,000 less per month. I really want that $12,000 at the end of the year."

Of course, the extra $12,000 comes with trade-offs.

Challenges that come with renting by the room: 'Managing personalities'

More tenants typically means more work.

If you're renting a property by the room, "It's definitely more hands-on," said Keane-Rivera. "There's definitely more to coordinate. You're not dealing with one tenant; you're dealing with five, six, maybe seven."

As a landlord, you're essentially on call at all times but expect the phone to ring more if you have multiple tenants sharing a space.

"Someone calling at 9 p.m. because something's wrong is going to happen more often," he said. "If your investment strategy is to get a modest return with minimal effort, you should probably look at something else. If you want to get a higher return and you don't mind spending the extra effort, it's something you should look into."

Finding tenants to share a space hasn't yet been a challenge for Keane-Rivera, who lists his rooms on Roomster, Roomies, and Facebook Marketplace.

"There are a lot of different sub-groups looking for something more economical: people coming out of college, people getting their first job, people who just got divorced," he said. "I would say everyone that rents with me is looking to save money."

The challenge, sometimes, is roommate compatibility: "You're definitely managing personalities. If you have too many alpha males under one roof, you have problems. You get calls and texts saying someone did this, and it's never immediate; it's always at the breaking point. So I look for people who I think would live cohesively with one another."

That takes time and effort. Whenever he's looking to fill a vacancy, he interviews multiple prospective tenants to find someone who qualifies financially and is a good personality fit.

Renting by the room is more hands-on and not for everyone, but can create more cash flow and lower your overall risk.

"You diversify your cash flow by having four tenants under one roof instead of one," said Keane-Rivera. "Very rarely will you have all your tenants move out and if you do, that's indicative of some bigger problem that you should probably go fix."

It's a particularly appealing option during tricky market conditions and could be a way for rookie investors to get their foot in the door, he added: "The way prices on homes keep going nowadays if the younger generation doesn't have their parents' ability to cut them a down payment check or doesn't have a six-figure tech job I'm going to think they're going to have a very hard time purchasing a home. If they want to actually get into one, this is a viable option for them."

Read the original article on Business Insider
Москва

В Мытищах состоялась отчетно-выборная конференция профсоюза жизнеобеспечения

You need the eyes of a movie hero to spot the 5 horror villains lurking near the crime scene in under 90 secs

Revealed: SC Freedom Caucus leader had numerous electronics seized by federal officers

Bay Area high school football: Weekend scoreboard, how Top 25 fared

Inside the dark world of randy sex pest dolphins who terrorise swimmers & try to ROMP with humans

Ria.city






Read also

Who is Romesh Ranganathan’s mum Shanthi?

Five Apple Intelligence features that you can try out now on your iPhone

Popular garage closes for good after reaching ‘final straw’ with rowdy customers

News, articles, comments, with a minute-by-minute update, now on Today24.pro

News Every Day

You need the eyes of a movie hero to spot the 5 horror villains lurking near the crime scene in under 90 secs

Today24.pro — latest news 24/7. You can add your news instantly now — here


News Every Day

Inside the dark world of randy sex pest dolphins who terrorise swimmers & try to ROMP with humans



Sports today


Новости тенниса
WTA

Елена Рыбакина вылетела на Итоговый турнир WTA



Спорт в России и мире
Москва

Слушатель «Авторадио» едет в Абу-Даби на «Формулу-1»



All sports news today





Sports in Russia today

Москва

Виктор Са: хорошо себя чувствую в «Краснодаре», рад работать и помогать команде


Новости России

Game News

Рецензия на игра Metaphor: ReFantazio


Russian.city


Москва

В Мытищах состоялась отчетно-выборная конференция профсоюза жизнеобеспечения


Губернаторы России
Сергей Собянин

Собянин поздравил команду Москвы с победой на чемпионате «Абилимпикс»


МФТИ создал комплекс для медицинской реабилитации: контроль через приложение

В Мытищах состоялась отчетно-выборная конференция профсоюза жизнеобеспечения

Заглянем в МРОТ. На что повлияет новый минимальный размер оплаты труда

«Разрушительные последствия»: что Ванга предсказала России и миру на 2025 год


Произошел конфуз: Ани Лорак расплакалась во время концерта в Москве

Зигзаг молнии, которой дирижирует маг: портрет Фрэнка Синатры на фоне эпохи

«Больнее родов»: Певица Адель частично оглохла из-за инфекции

Дом для «козьей ОПГ»: Джиган и Самойлова построят питомник для бутовских коз


Карен Хачанов выиграл девять из последних десяти матчей на турнирах ATP

Елена Рыбакина узнала плохие новости от WTA

Россиянка Шнайдер с победы стартовала на турнире WTA в Гонконге

Познер о включении Шараповой в Зал славы: «Представители тенниса умнее и дальновиднее своих коллег по другим видам спорта»



В Мытищах состоялась отчетно-выборная конференция профсоюза жизнеобеспечения

Слушатель «Авторадио» едет в Абу-Даби на «Формулу-1»

Органические удобрения от компании «БиоЭкоПро»

День рождения музея «АТОМ» при поддержке Детского радио


«Спартак» после двух поражений подряд обыграл в овертайме «Витязь»

Акцент на практику: Желдорреммаш подвел итоги реализации профориентационного проекта в 2024 году

Московский «Спартак» обыграл футболистов из «Пари НН» со счетом 2:0

В Тюменской области чтят память Героя России Тимура Мухутдинова


В Магадане полицейские наградили победителей регионального этапа конкурса МВД России «Мои родители работают в полиции»

Турклуб обвиняет Непал в затягивании отправки тел погибших альпинистов в Россию

В Серпухове пройдет чемпионат России по боксу среди женщин

Лидером по наличию мусорных контейнеров стала Амурская область



Путин в России и мире






Персональные новости Russian.city
Антонина Арталевская

В Москве завершился IX Всероссийский Конгресс онкопациентов



News Every Day

Revealed: SC Freedom Caucus leader had numerous electronics seized by federal officers




Friends of Today24

Музыкальные новости

Персональные новости