Single Family w/ basement apartment

[Ian K.]

Hey,

I'm contemplating a property that has a two bedroom basement apartment. It is a SFH.

I wonder what are the potential issues aside from difficulty renting that might arise from having a basement apartment on a property zoned SFH?

Would a lender include the rent coming from the basement as income if I have two years of landlord experience? 

Also, this property is on a busy street but in a very desirable part of town.  I would love thoughts on this.

I would plan on living in the main part of the house which is a 3/2.  Sort of separate entrances as you must enter into the property and then there are two doors going either way once you are in.  

Thanks for your time and comments. 

[Account Closed]

check with your county or city's zoning (ie, maps, and/or call them) to ask if ADU's are allowed in ur zoning. the answer is yes or no, not maybe. if so, ADUs still need to have permits and the C of O amended to show SFH plus 1 ADU and where the ADU is etc. C of Os usually list bedroom location and numbers by floor. if a C of O does not list (nor was amended to show) bedrooms in the basement, they are illegal.

not only do conventional lenders practically never count rental income for a single family primary residence, but similar issues arise when doing taxes - unless the local zoning particular to your property allows ADUs and was done with proper permits etc or u are only renting out legal bedroom/s to lodger/roomate/s (ie, basement 'bedrooms' are often illegal and a huge fire/death hazard).