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Discussion Starter · #1 ·
My husband and his partner are seriously considering purchasing a rooming house in Nova Scotia (where the partner lives). We have owned and managed several rental units, but have never had anything to do with a rooming house before.

The building consists of one large commercial space on the bottom level (currently a restaurant) and nine rooms above. The numbers look really good - $5500 per month in rents, the mortgage and costs would be about $3000 a month, and the restaurant consists of $2000 in rent per month, so even if it didn't pay rent for some reason (which I consider to be the biggest risk factor here) we would still come out on top.

The previous owner of the building was also the restaurant owner. He is quite old now and is retiring. He sold the restaurant several months ago (after it being there for 15 years) and now wants to sell the building and move somewhere warmer.

Does anyone have any experience with purchasing or managing rooming houses? What are the main risk factors I should look at before we consider buying?
 

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Discussion Starter · #3 ·
LOL - well actually it IS in Halifax. Yeah, running a whorehouse isn't exactly the kind of investment I was looking for, but I am pretty sure that this is not one. The turnaround time is pretty high compared to the units I am used to renting, but the tenants still stay for months at a time, rather than just an hour or two ;-)
 

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Discussion Starter · #6 ·
Thanks, excellent advice. I will pass it on to my husband. The partner who lives in Halifax was going to be taking care of the house, but I am not sure how aware he is of how much work it could be. And although he is willing to be hands on, I am also not sure how capable he is at fixing things. It would be a steep learning curve for him.
 
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