Living in the mother in law suite renting the home?

3 Replies

Looking at a place in the west Nashville area. 4 bdrm house with an adjoining apartment. The asking price is way out of market and the home has been sitting for almost 2 months. The long distance sellers are having tenants move out this week and seem like they are becoming more motivated to sell. The home sits on a tiny sixth acre lot (I could mow the lawn with a weed eater). The house was built circa 2002 and is in ok shape for it's age.

1.) what kind of vacancy rates should I expect if I rent a 4 bdrm house? What kind of rents would I be able to get for a 4 bdrm house in that area.

2.) How do I price this oddity of a house? (super tiny lot, adjoining apartment)

3.) Is this a crazy idea, should I go back to my original idea of a duplex with 2 bdrms a side?

West Nashville is a large and granular area, so I can't say what it should rent for. I'm in East Nashville, and if the house is in a good neighborhood and nice inside you can expect ~500/room. Very low vacancies. If it's not nice or not in a great area, you might see more like 300/room. If it's brand new and has upgraded interior (granite, stainless, etc -- a high end rehab), you might get more like 800/room. 

Best bet is to pull your own comps from what's out there on craigslist and rentometer and build your numbers from there.

Spangler-

Super rentometer is a super helpful tool! Thank you for sharing. Do you know of any data available to make an educated guess on the kind of vacancy rate I should expect from a 4 bdrm home in West Nashville. The neighborhood is gentrifying with a lot of new construction.

Originally posted by @Luke G. :

Spangler-

Super rentometer is a super helpful tool! Thank you for sharing. Do you know of any data available to make an educated guess on the kind of vacancy rate I should expect from a 4 bdrm home in West Nashville. The neighborhood is gentrifying with a lot of new construction.

 I don't. My vacancy rate in East Nash is very low, but as I said, without knowing where in West Nash and your tenant demographic it's impossible for me to guess at. I'd use 10% in your numbers and then see what it actually is. 4 bedrooms gets you into either renting to families or groups of 20-somethings, where 2 and 3 bedrooms you can attract young professionals. Upsides and downsides there.