I am looking at a 3/2 house that is well taken care of that I am looking to house hack, if the price is right.
It has a 2nd dwelling that is a 2/1 with its own kitchen/laudry and so forth. However, previous owners built this without having it permitted.
I would be living in the second dwelling while renting the main house for the first year (FHA loan). I would then like to rent out the 2nd dwelling for the cash flow. Are there any thoughts on renting out this unpermitted 2nd dwelling after the year. I am currently doing research on this wherever possible before submitting an offer.
IT all depends on the price of the deal. The tenants are not going to care the addition is not permitted. You may have some issue with the appraisal if you are financing for the mortgage since it will appraise as a SFH 3/2 not a multi family. So again depends on pricing. Otherwise sounds good - no different than buying house and renting out your garage if somebody so wishes to stay there ....