Which unit should I reside?

Question

So, I think I finally found my first property & househack. I’ll be going back to school for a couple years to move up in my current work place. This property is just down the road from the college and only 30 minutes from my place of employment. So, I thought this would be a great househack opportunity.

The property is a 3 Br 2 Ba with an ADU above the garage. The strategy is to obviously live in one unit and then rent out the the empty bedroom(s) of the unit I am staying in plus the 2nd unit.

My question is, would it be better to stay in the larger unit so I’ll have income from 2 bedrooms plus the other unit or live in the smaller unit while renting out 1 bedroom and the large unit?

Kind of seems common sense to do the former, but I wanted to get y’all’s opinions in case I’m missing something.

Theresa Harris · Answer

Figure out how much rent you can get from each of the rooms/units and live in the unit that will leave you with the most income.

Jarret Durst · Answer

Idc about comfort too much so the roommate option doesn’t really bother me.

Ray Hage · Answer

I agree on going with the former. Since you are in the beginning of your REI career, you need to maximize the income coming in from your house and place of employment for your next properties. Down the road from the college is great so it won't be hard to find tenants. Have their parents co-sign as well so that they are responsible for the rent and potential damages.

Ryan Thomson · Answer

@Jarret Durst nicew work! It depends on whether you want to be more comfortable or profitable. If you want to be more comfortable do that option. If profit is more important then run the numbers and decide which strategy works best for your bottom line.

There is no right answer. Align it to your goals and preferences.

Tanner Pile · Answer

@Jarret Durst

Living in the 3/2 will likely bring the best return and get you closer to living rent free. It would mainly come down to what comfort level you're willing to live in with having 0-2 roommates.

Theresa Harris · Answer

Make sure you check permits were pulled on the ADU and it is legal.

Jarret Durst · Answer

Well, I walked it today and I’m thinking the best route would be to live in the 3 BR first and get it fixed up. Then work on the ADU because it need A LOT more work than the house.

Which unit should I reside?

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