P
eter Keane-Rivera owns two single-family homes in the Seattle area, but he has nine tenants paying rent. His strategy is to "buy the biggest house you can and fill it with paying tenants." He purchased his first home in 2017 and converted it into a four-bedroom rental property, while his second home, bought in 2019, has five bedrooms and an unfinished mother-in-law suite that he rents out on Airbnb. Keane-Rivera aims to generate at least $1,000 of positive cash flow each month from his properties.

    He brings in between $849 and $1,450 monthly per room, with the most lucrative unit being the Airbnb space, which averages $2,666 a month. If he listed his homes as one unit, his rental income would be significantly lower, around $900 to $1,000 less per month. However, this strategy comes with challenges, including managing personalities and coordinating with multiple tenants.

    Keane-Rivera lists his rooms on various platforms, including Roomster and Facebook Marketplace, targeting individuals looking for economical options. He interviews prospective tenants to find those who qualify financially and have good personality fits. The key to success is finding compatible roommates, as this can prevent conflicts and ensure a smooth rental experience.

    Renting by the room diversifies cash flow and reduces overall risk, making it an attractive option during tricky market conditions. Keane-Rivera believes that this strategy could be particularly appealing for rookie investors or those who cannot afford to purchase a home due to high prices.