I'm currently renting a house, but I'm actively looking to become a homeowner. I may have found the perfect house, and that house also has a rental unit. I might be going straight from renter to landlord!
The rental unit is a 846 square foot, 1 bed 1 bath with a private driveway and entrance on the opposite side from my driveway and entrance. It has separate electric from the main house and from my understanding was used as a rental unit for the entire time it has existed. It does use the same well/septic. The floors are in good condition and it has been recently painted since they were getting the whole house ready to sell. I will be specifically asking the home inspector to look for any repairs that would be needed. It is attached to the main house on one side, nowhere near where my bedroom would be.
If I buy the house, I could afford the mortgage and everything without a renter. I would never want to be in a situation where I needed that money to live off of since there is no guarantee that someone will always be there. Any rent money would be deposited into a savings account with the express purpose of future repairs/upgrades to the property. Without that, the savings account would grow slowly and increase the risk of something happening before I have the money set aside to fix it. The rent money would bring peace of mind to a very anxious person.
I have no experience in these matters, so I'm reaching out to people who do. The advice I've found online so far has been aimed at those who are considering being a full time landlord, or owning multiple properties. While advice about background and credit checks are helpful, a good chunk of the other advice doesn't seem to apply. What advice do you have for me? What am I overlooking?
Congrats on your ambition to transition from renter to landlord! Can't tell you how many renters I have who will be renting forever, but with a nice new car payment in my parking lot.
I have a rental attached to my house. Sounds like it might be like the one you're looking at. Mine isn't a traditional duplex, I just have a neighbor with their own yard, parking area and entrance I don't see that much. I am a full-time LL, but this arrangement is just a bonus. My house will always be an asset, unlike the houses of most which only pull $ money out of the owner's pocket. I would encourage you to explore this further. I like it and no, you don't have to be full-time LL for this to work out.
Maybe query up house hacking here on BP. Most will refer to traditional plexes, but the idea is the same. Just get some help with tenant screening and lease forms, etc. Good luck @Morgan Johns !
I didn't even think about looking for information about renting duplexes, but it makes sense. I will make sure to look it up. Granted, I still don't even own the house yet, but I want to make sure that I could utilize the rental portion before jumping headlong in! Even if this place doesn't work out, I would at least have the information for if a similar situation arises.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.