More adults seek roommates to share expenses instead of buying houses

This is a case for rental properties. Instead of buying houses, people are doubling and tripling up in houses for rent. If there were a time in history when being a landlord of single family homes was king, that time is 2009.

The massive layoffs, businesses filing for bankruptcy, and home foreclosures has some people trying to make ends meet by sharing their homes with strangers, friends and family members.

In November 2008, the number of Craigslist ads for roomates were up 29% in the Raleigh/Durham North Carolina area. Nationwide, Craigslist postings have jumped up 62% and may rise higher as more businesses layoff workers and more homes go through foreclosure.

2009 is the year to own single family homes as rentals. Some need assistance with bills because their incomes have fallen and the cost of utilities and rents have increased. Others have found it “cool” to be frugal again. In some Mexican communities, they pool their minimum-wage checks together and live under one roof.In some Senegalese communities, they take weekly donations from group members to help each other in an emergency, such as a needed car repair, utility bill, or groceries.

At many luxury condo complexes, renters are welcome with open arms. Many people are renting units they could never afford to buy. In some luxury condos, you can rent for about 50% to 60% of what it would cost to own that same unit.

In Miami-Dade County Florida, over 10,800 condos are categorized as rentals on the Multiple Listing Service. This number will likley rise higher as more foreclosures hit the market and if companies continue to lay people off. Lease-to-own deals are on the rise in many luxury condo buildings.

In a lease-to-own arrangement, the rents are typically paid every month for a year and go toward lowering the potential buyers closing costs or the set purchase price. The buyer pays an upfront, nonrefundable fee as consideration. Lease-to-own programs are also popping up in overbuilt parts of Brooklyn, New York. In Brooklyn’s trendy Williamsburg section, Homebuilder Toll Bros. (TOL) is pushing rent-to-own units in its new luxury condo tower.

2009 is the year to be an owner of single family homes in certain areas. Stick with areas where the median home price is under $150K and you should be able to find properties that will cash-flow at HUD section 8 rental rates.

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