Reverse House Hack?

[Mike Gratzmiller]

I am looking at a property that has two structures.  The main house 2+2 and the garage with a studio apartment located underneath.  I want to live in the studio and rent the house.  So I guess it's not "reverse" but normally I see house hackers renting out rooms within their main house, this is different.  Anyway... is this considered house hacking?  Or just renting a stand alone property?  Both structures are on same lot and have same utilities but are not connected in any way.  I'd like to start renting the main house asap!!!  any advice?

[Bill B.]

It’s exactly the same a if you were living in the big space and renting the small space except you’ll collect more rent. It’s like house hackers that agree to live in the basement while renting the premium spots to their tenants. 

The only “problem” you have is the utilities not being split. I’m not a fan of including utilities as you encourage tenant waste and your property appears to be more expensive than the comps. 

I think my solution would be to get an export from the utility companies of the last 12 months bills. Then I would figure out what percent of the total conditioned space was being rented. (Say 1800sf main rental and 600sf small place for you, so 75% rented.). Then notify potential tenants, here’s the utility bills for last year. In this case, I’d pay 25% of the bill and they’d face 75%.