I know many on this forum haven't bought a lot lately; with purchase/rent values so low, it's hard to find a property where the numbers work.

An alternative that I've been exploring is rooming houses. They fill the niche between homelessness and renting a junky studio. They're a great alternative for individuals with good income who've lost their housing and are paying so much to the motel that they can't save up for a down payment. The money is decent and expectations much less than for an Airbnb-style rental.

2 1/2 months ago, I agreed to help run three rooming houses for a burnt-out investor who was tired of making the hour-long drive to meet prospects who didn't show up. Out of the 19 rooms, 6 had paying tenants.

I just filled the last one. I've had to eject 5 tenants: 4 from the previous manager, and one that I placed who relapsed. The time commitment has been very significant as I've gotten rid of the troublemakers, done a lot of tenant training, and worked on badly-needed property upgrades (smoke detectors, outside lights, pest control). I think we're over the initial hump now, though. I only spent 3 hours on them this week, and part of that was signing the newest resident.

For anyone who's interested, the numbers are really, really good. Around here, you can get a 6-bedroom home for $70K. There are lots of factory-type jobs paying $15-$20/hr. Tenants are paying $420/mo or $105/wk (which works out to about $450/mo). Most move in paying the first week's rent and intending to switch to monthly, but few manage to do it.

That's a gross of $31,500 on a $70K investment. The owner pays utilities, which I'd guess run about $500/month. For those of you who are looking for ways to expand your portfolio, you might consider it!

Nice. Obviously, theirs are already furnished, but do they offer twins/double twins/queens/double queens? Are you seeing more singles or more couples? And around here, a lot of people have trouble taking care of themselves, but are still hauling around 100 lbs of dog, or three cats and a chihuahua, or whatever. Is there less animal baggage in your tenant pool?

A friend has a rooming house. I see it as definitely filling a need, with demand only increasing in the near future.

Some things my friend does:

1. Charge monthly for running a window a/c. If the A/ C is in the window at any time during the month then there is a fee. Not terribly high, but enough.

2. When a room is vacant, tenants are allowed to swap rooms, if they wish. So, the tenants can switch to the bedroom that is darker during the day, or cooler, or warmer; whatever they prefer.

3. Long term tenants are very important. They help transition others .

4. There is a small space in the common hall for food pantry items. If someone gets a bag from a food pantry and doesn't like something, it goes in the hallway food pantry. Canned tomatoes end up there a lot. Day before payday, tomatoes get eaten.

5. The attic stores extra furniture. Furniture is scrounged from all kinds of places, as long as its sturdy, functional, inexpensive ( free is best.)

I should explain the "six bedrooms." Around here, there are a lot of colonial-style, 3-BR houses with attics and basements.

The dining room becomes a bedroom.

The living room becomes a bedroom.

The attic becomes a bedroom.

Where possible, the basement becomes 1-2 bedrooms.

There is no living room (discourages guests).

The rooms are each furnished with a twin bed, armoire, desk and chair. Sometimes a nightstand. The owner does not provide linens. Rooms are single-occupancy only, as couples double the demand on utilities and tend to come with more drama. There's at least 1 1/2 bathrooms in each property. That second toilet can be important. Nobody spends long in the bathroom, though.