Why roommates is a great passive income

In this be free and wealthy blog post you will learn:

  • Roommate is a great passive investment income
  • How roommates are amazing way to build long-lasting relationships.

Of course, getting a roommate is not for everyone. In my situation, I was fortunate enough to buy a big house 2500+sq feet in one of the most expensive cities in the US. Also, I am single, so getting roommates is an option. Otherwise, convincing your significant other might be difficult. And of course, you need to be patient. A lot of my friends wonder why it doesn't bother me having someone else using my kitchen or the bathroom. In fact, I can tolerate it since the income they give me provides me more freedom than those little annoyances.

The way I like to look at it in terms of assets. As an example, for an expensive city like San Francisco, the market price for a room is around 1100$/mo-1500$/mo depending on the quality. This means an annual return of 15000$ (for 1250$/mo). Now assume you can generate an after-tax return of 5%, this income is equivalent to owning an asset of 300000$. So if you have 3 roommates, then the income you generate is equivalent of having 900M$ in assets, not bad.

The other reason for roommates is the relationships you can build with it. As an adult, you don't spend that much time with other people other than your spouse and/or co-workers. And since I pick my roommates, I always pick someone in a similar industry as mine, so we do create synergies and I get to learn a lot from them. As a teenager or in college, making long-lasting friendship is hard mostly because you don't spend as much time with other people to build those relationships. Roommates are not the only way (for example, this blog as well helped me build relationships that will last a lifetime), but I can say most of the roommates I had were amazing human beings that I get to know well (that otherwise would have been very unlikely without being a roommate).

What do you guys think about having roommates? Any good/bad stories about it?