Here is the plan that works for me here.
Renting out rooms in houses. You can get a 5-6 bedroom house in Philly that are in decent areas for $20k - $40k. I've got one for 10k in a more industrial area that has 8 bedrooms.
1. $100 a week for a room.
2. $10 per week for a ethernet drop off the cable modem ( 8 port linksys, lol )
3. $20 a month for " colo space " aka - basement storage in a 6X10 wire cage area in the basement. Padlock included.
4. One time $10 fee to provide a pallet to keep your gear off the basement floor.
What is provided.
1. Cable TV / hot water / heat / laundry facilites / power / safe environment.
For the tennants we get ( halfway house vets, etc ) this is the most stable place they have to go to and are fantastic people. Sure they have made mistakes, but, also, I get people that pay on time and if they dont, just hit the bricks that night.
Here is the bottom line.
10k house - note is $117.00 a month
utiliites average --- $700.00 a month
misc costs brings it to about a thousand a month.
The tennats are paying
$3200.00 a month in rents ( 8 rooms at $100 per week )
$200 a month in cable modem ethernet drops
$400 a month in storage space fees.
$3800.00 a month / $2800.00 a month profit.
Rooming houses make the world go round...
