Real Estate Investor · Cincinnati, OH · Member since 2011 · 119 posts · 59 votes
House across the street from my personal residence is on sale and I can get a heck of a deal on it, I'm thinking about buying it and either sitting on it for a while until the market improves a bit around here or possibly rent it to a company that brings a lot of executives to our town, mostly on a temporary 12-24 months basis. I wouldn't have hesitated a bit if it wasn't literally across the street, I can think of few advantages but I'm not so sure it's such a great idea after talking to few people about it...I'd like the perspectives of BP member and see if anyone been in a similar situation?
Hey Jim,
My first rental was the house next door to me. I rented that out for 3 years to two different tenants and never had any issues. Since it was so convenient for me I offered to mow the grass - the tenants were grateful (med school students) and I got to keep a close eye on my investment.
Jim - If it is a great deal, why not. Sounds like living in a multi-family that you own. The downsides are that if you allow them to know it, your tenants will be banging on your door on a regular basis.
There are always ways around that, though, including buying the property under your business and hiring someone to manage it for you.
My grandfather owned all the houses around his personal residence and was never bothered, I have a friend that her parents purchased their entire court to control who lived there same thing no problems.
Hey Jim,
My first rental was the house next door to me. I rented that out for 3 years to two different tenants and never had any issues. Since it was so convenient for me I offered to mow the grass - the tenants were grateful (med school students) and I got to keep a close eye on my investment.
Im currently living in a home that was originally one of my rentals. It is at the end of a cul de sac and my wife and I have decided we want to 'own' the entire street over time. Just a few months ago one of our neighbors house came up for sale and we bought it...as a matter of fact the renters are moving into it today...another house (two doors down from us in the other direction) just came up for sale for a good price so we are working on getting $$ together to buy it as well. We know that at least 2 more houses on our cul de sac are coming up for sale in the next year and a half. If we can get those as well we will own almost 75% of the street and be the "King and Queen" of the neighborhod! lol.
Acutally, we will probably be moving out of there here soon (and turning our house back into a rental again) but by owning most of the houses on the street it will help us keep a 'standard' for the street and help keep everything looking nice. Also, we have realized that everytime we get a 'good deal' on one of the houses on the street (below PVA and market value) it helps on the next purchase on the street because it is a lower comp to compare to and justify the lower offer/purchase price. I'll keep you posted on any problems we have in renting to a neighbor. Good luck!
I totally agree with the other posters. If the numbers work, I believe its a great approach to your business.
I know many landlords that have rentals in their own neighborhood. Occasionally, yes, they will get that tenant that asks 100 questions. But overall, they find it very convenient in managing their business.
In my area there are many multifamilies and the landlord lives in one unit, so your tenant is literally in the same building as you. My tenants almost always communicate any maintenance issues via email. Occasionally they mention something in person if I see them, but I take the position that I'd rather know about a problem. They rarely tell me about anything frivolous that I don't want to address.
I owned a house across the street as well. My garage to my home was in the back with a drive off the street so my cars were not in view of the other house. (This will make sence later, hang in there)
When I showed the house I drove over and waited to meet people. I rented it and would drive away and go doother things. I'd come home and park in the rear. They would see me at home in the yard and I just told them I owned the house too. It was months before the tenant realized I was living across the street. They never asked if I lived there and I never mentioned it.
It was no big deal, I gave them the numbers to call if they needed repairs. I had no problems at all with it.
I did sence that after they knew I was living across the street that they seemed topay attention to keeping the lawn mowed and kept it nice, I don'tknow if that was just them or if they felt like the owner was always watching.....but they were neighborly.
Also, we have realized that everytime we get a 'good deal' on one of the houses on the street (below PVA and market value) it helps on the next purchase on the street because it is a lower comp to compare to and justify the lower offer/purchase price.