hello all, I'm new here and looking for some advice.
I own a home that is currently in dire need of a full gut & remodel. I currently have no mortgage on the home and I am considering taking out a HELOC on the house so that I can find a fund my full remodel. Once I get the house remodeled I am thinking of moving into an apartment elsewhere and renting the whole house out as a single family home.
If all goes well with this plan the monthly rental income will more than pay for the monthly payment on the home loan plus I will have some passive income coming in from the remainder of the rental income after paying the monthly home loan each month.
One problem with this situation is that I am a professional drummer who practices several hours a day as well as being in several gigging bands. If I were to move into an apartment I would no longer have a rehearsal location for my bands or for my own drumming practice.
What I am thinking I could do is install heating and air conditioning into my garage as well as sound proof and insulate the building so that I could still hold rehearsals and such in the garage without noise complaints from my tenant. The garage on my property is a separate building from the house and has electricity running to it from the house.
My question is, can I sub meter the garage electricity so that my tenant will pay all utilities that they use in the house and I will pay all electricity used in the garage/ rehearsal space? Would it be more practical to get an entirely different electricity line run from the power company (pepco) to the garage instead of sub metering it? Is either one of these two options even possible/ legal?
I have never dabbled in real estate investing before and know nothing about it so any advice here would be greatly appreciated. Does this seem like a good idea on my part?Are there any flaws in this plan that should be pointed out to me?Is there a better way to go about doing this that I am not seeing?
Thank you in advance for any suggestions/ recommendations and I appreciate you reading my post.
I am very Interested in this topic. I have a 800sqft rental house with a 700sqft detach garage with alley access. They currently rent together but I want to split them. I’m sure someone on BP has solved this problem.
Following this thread too....
Join the Largest Real Estate Investing Community
Basic membership is free, forever.