Do you want to be a Landlord?
Found that perfect home you have been waiting for? Oh, but wait; does it have more space than what you really need?
Oh the price is perfect; what about the unmerrited space? What to do with that?
Maybe you should check into the possibility of using that extra space for an ADU (accessory dwelling unit) which is a collectively more formal name for mother-in-law quarters,guest cottages, basement apartments,etc. ADUs have enabled home owners to add live-in services like babysitting or elderly care, but now they are creating a way for home owners to generate extra income by renting out the space to offset their monthly mortgage payments. {National Associaton of Realtors, Feb.2010}
According to the NAR article there are a few questions to ask yourself and your wallet before putting in an offer;
1. Is it legal?
Are the zoning regulations in agreement with a property of this size and are there any restrictions or ordances that would conflict with accepting tenants?
2. Is it practical?
How much renovation will be necessary to create an extra living space within this property? Will plumbing need to be installed? If the costs are going to be more than 30 percent of the first year's rental income it is probably not worth it.
3. Is it desirable?
Are you willing to give up a large portion of your privacy to tenants? There will be some level of access to your home whether by a garage, a laundry room, or a patio.
4. Is there a demand for rental units in this area? .How long will it take to fill vacancies? Time trully is money when you have an empty rental unit that you are paying utilities for.
All things should be taken into consideration when contemplating such a venture as this.
Seek legal counsel about the best route to take to cover yourself in the event you have to evict the tenants.
With all this said there are plenty of great buys on the market right now that can be a cash cow if the stars line up in your favor! The main point is education; do your homework. Talk to your accountant, attorney, and finally a well established and experienced Realtor. Ask for the area demographics and comps for nearby properties.
Too much information never hurt anyone but too little information can have negative effects.
For a FREE list of foreclosure properties in the Sevierville, Tennessee area contact http://www.michelebryan.com/ 865.898.5408
Oh the price is perfect; what about the unmerrited space? What to do with that?
Maybe you should check into the possibility of using that extra space for an ADU (accessory dwelling unit) which is a collectively more formal name for mother-in-law quarters,guest cottages, basement apartments,etc. ADUs have enabled home owners to add live-in services like babysitting or elderly care, but now they are creating a way for home owners to generate extra income by renting out the space to offset their monthly mortgage payments. {National Associaton of Realtors, Feb.2010}
According to the NAR article there are a few questions to ask yourself and your wallet before putting in an offer;
1. Is it legal?
Are the zoning regulations in agreement with a property of this size and are there any restrictions or ordances that would conflict with accepting tenants?
2. Is it practical?
How much renovation will be necessary to create an extra living space within this property? Will plumbing need to be installed? If the costs are going to be more than 30 percent of the first year's rental income it is probably not worth it.
3. Is it desirable?
Are you willing to give up a large portion of your privacy to tenants? There will be some level of access to your home whether by a garage, a laundry room, or a patio.
4. Is there a demand for rental units in this area? .How long will it take to fill vacancies? Time trully is money when you have an empty rental unit that you are paying utilities for.
All things should be taken into consideration when contemplating such a venture as this.
Seek legal counsel about the best route to take to cover yourself in the event you have to evict the tenants.
With all this said there are plenty of great buys on the market right now that can be a cash cow if the stars line up in your favor! The main point is education; do your homework. Talk to your accountant, attorney, and finally a well established and experienced Realtor. Ask for the area demographics and comps for nearby properties.
Too much information never hurt anyone but too little information can have negative effects.
For a FREE list of foreclosure properties in the Sevierville, Tennessee area contact http://www.michelebryan.com/ 865.898.5408
