againstthegrain Posted November 16, 2015 Share Posted November 16, 2015 We are getting ready to buy a home. We have been looking for a while and want to be closer to DH's work (we are an hour away currently). He works urban, we live rurally currently. We have found homes that meet our needs/wants near his work for $135-150k, which would be $1100 a month payment wise with taxes and insurance. All the homes were built in the 1960s or 1970s. We saw a mutliresidential property come onto the market in a rural area 15 minutes from his work. It meets some of our needs and lacks in others. They are asking much less, around $90k and we'd be looking at $700/month after all taxes and insurance. It has a 1 bedroom/1 bath attached to the main home (2300 sq ft, 1876 victorian home, remodeled and updated, was a 3plex and they combined the lower and upper level into one giant home). The apartment is currently rented for $525 a month. Taxes are higher due to the multi residential zoning and we would need to build a garage as the property does not have one and we want a garage. We are going to look at the home tomorrow with some others on our list...but I'm torn. The entire concept of having rental income, even if not consistently, is very appealing - but the age of the home combined with having someone in an attached apartment (versus another home on the property) when I have kids all day at home makes me zoom into protective mode with who is living there. I need some thoughts and opinions on this. Would you consider this property? Quote Link to comment Share on other sites More sharing options...
Arcadia Posted November 16, 2015 Share Posted November 16, 2015 I would if we don't need the rental income. We have look at some like those and it would make a nice guest suite or adult child suite. 5 Quote Link to comment Share on other sites More sharing options...
clementine Posted November 16, 2015 Share Posted November 16, 2015 If we didn't need the income, I probably wouldn't rent it out. Since your kids are still little, I'd use it as a school room, a play room, or a guest suite. 7 Quote Link to comment Share on other sites More sharing options...
Ethel Mertz Posted November 16, 2015 Share Posted November 16, 2015 I would. But I would make the apartment into our homeschool area (with a guest bed). Quote Link to comment Share on other sites More sharing options...
Mergath Posted November 16, 2015 Share Posted November 16, 2015 I would probably want to get more details about the renter and their lease before I considered it. If the renter signed a lease, you won't be able to just move in and kick him/her out. A lot of people think that when you buy a property like that you can kick the renter out the next day, but that's illegal. 4 Quote Link to comment Share on other sites More sharing options...
Ethel Mertz Posted November 16, 2015 Share Posted November 16, 2015 I would probably want to get more details about the renter and their lease before I considered it. If the renter signed a lease, you won't be able to just move in and kick him/her out. A lot of people think that when you buy a property like that you can kick the renter out the next day, but that's illegal. I don't know. Doesn't that vary state-to-state? Quote Link to comment Share on other sites More sharing options...
TammyS Posted November 16, 2015 Share Posted November 16, 2015 If you don't mind living around people, then go for it. But make sure that you don't mind. Then think over how you want to handle the rental. You can do background checks (my mother's apartment complex includes a criminal background check before you can lease). You might also want to NOT advertise the apartment at all and only have renters come to you through referral. I know a lady who does that because it cuts down on the risk of obnoxious neighbors. Quote Link to comment Share on other sites More sharing options...
Bluegoat Posted November 16, 2015 Share Posted November 16, 2015 I would consider it. If I didn't need the rental income, I would not keep renting the apartment though I would give the person a generous amount of time to make other arrangements or whatever the law required. I think an apartment would be potentially really useful - I would also make it a school room/guest suite, and it might come in handy if kids get bigger and need space or a parent moves in. If I would need the income, I would still consider it. Quote Link to comment Share on other sites More sharing options...
Mergath Posted November 16, 2015 Share Posted November 16, 2015 I don't know. Doesn't that vary state-to-state? I looked this up like a month ago irt a different post, and I can't remember the exact laws and which were federal and which were state, but the gist was that no matter where you live, you can't move in and immediately kick out a renter who has a lease with no termination clause. You can offer to buy them out, but if they turn that down you're going to be stuck with them for at least a few months. The op will of course want to find out all the specific details and laws. 2 Quote Link to comment Share on other sites More sharing options...
Ethel Mertz Posted November 16, 2015 Share Posted November 16, 2015 I looked this up like a month ago irt a different post, and I can't remember the exact laws and which were federal and which were state, but the gist was that no matter where you live, you can't move in and immediately kick out a renter who has a lease with no termination clause. You can offer to buy them out, but if they turn that down you're going to be stuck with them for at least a few months. The op will of course want to find out all the specific details and laws. Thanks! I had no idea. We're also looking for a house or condo to buy and there have been more than one that had an apartment with a tenant. Quote Link to comment Share on other sites More sharing options...
LisaKinVA Posted November 16, 2015 Share Posted November 16, 2015 This is exactly what we hope to do. I have my eye on two properties with this in mind. We also have to build a garage, and we are planning to build an apartment above. The location is perfect both for University students or Navy. The rental income will be a great way for us to payoff the house faster, as well as give us some much needed breathing room. I prefer the garage apartment to something attached to my house. My aunt and uncle did this until they retired. My cousin is doing it now. 1 Quote Link to comment Share on other sites More sharing options...
Southern Ivy Posted November 16, 2015 Share Posted November 16, 2015 If we didn't need the income, I probably wouldn't rent it out. Since your kids are still little, I'd use it as a school room, a play room, or a guest suite. My thoughts exactly. When I was a teenager, we rented in a home with 2 apartments attached. It was weird to me. Little to no real privacy in our home. We could hear the people in the apartments, found used condoms outside a couple of times and you could often smell the pot smoke. :/ So, I probably wouldn't suggest it. However, I think it would be lovely for a homeschooling or guest suite. Quote Link to comment Share on other sites More sharing options...
againstthegrain Posted November 16, 2015 Author Share Posted November 16, 2015 Good input ladies!! Quote Link to comment Share on other sites More sharing options...
Carol in Cal. Posted November 16, 2015 Share Posted November 16, 2015 If I had a choice, I don't think I would want to be a landlord to strangers who I lived right next door to. Too much interaction with too unequal a relationship could get very uncomfortable. However, I love the idea of having room for a relative or close friend to live nearby and semi-independently. So I would be torn between those two possibilities. Quote Link to comment Share on other sites More sharing options...
ErinE Posted November 16, 2015 Share Posted November 16, 2015 I would consider the property because I like the idea of a separate apartment for older family. A big reason why we bought our current home is there was a room on the lower level for our parents and grandparents. I would not rent it out because I wouldn't want the hassle of a renter if I don't need the income. I've known people with young children who rented their attached apartment to strangers and they quickly stopped leasing, mainly because the renters were in and out all hours of the night. Others with grown children don't mind it as much, but they tend to rent very selectively. Quote Link to comment Share on other sites More sharing options...
milovany Posted November 16, 2015 Share Posted November 16, 2015 That would definitely be a "plus" for me/us but we live in an area where rentals are always in demand and where we can be picky. We also just turned one of our units into an airbnb rental and that's going even better (financially, worry-wise and what-I-like-to-do wise). I love that we can start pouring the extra $$ into the mortgage to get it paid off earlier. I love that we have options for our kids if needed, and for aging parents or other loved ones if needed/wanted. 1 Quote Link to comment Share on other sites More sharing options...
Mergath Posted November 16, 2015 Share Posted November 16, 2015 Thanks! I had no idea. We're also looking for a house or condo to buy and there have been more than one that had an apartment with a tenant. I did see people online mention that you can do an owner move-in eviction, but any kind of legal eviction means legal fees and hassles. And I don't know if that would be an option if you're moving onto the property but not into the actual unit, as the op would be doing. Either way, I just think people should be aware that in most cases you can't simply move in and be like, "Hey, renters, be out before I get there." 2 Quote Link to comment Share on other sites More sharing options...
milovany Posted November 16, 2015 Share Posted November 16, 2015 I wonder if you can make it part of the offer to have the current renter out when you take possession (i.e., the current owner helps relocate them out of their proceeds, working with them of course). Quote Link to comment Share on other sites More sharing options...
rebcoola Posted November 16, 2015 Share Posted November 16, 2015 We are looking at buying a property like this now though the Apartment is attached to the shop. It will be a guest suite for missionary friends & family and a place for DH to sleep days during night shift that is quieter. Than in 5-10 yrs my parents plan to move in so they can be with us and have privacy they are going to pay to make it Senior friendly. Quote Link to comment Share on other sites More sharing options...
Mergath Posted November 16, 2015 Share Posted November 16, 2015 I wonder if you can make it part of the offer to have the current renter out when you take possession (i.e., the current owner helps relocate them out of their proceeds, working with them of course). Some leases have a termination clause that comes into effect if the property is sold, but not all of them. And it has to be there when they sign it; the landlord can't exactly add it in later on if it's convenient. ;) If the tenants refuse to move until their lease is up, there's not much the current owner could do, but I suppose making that part of the offer means the buyer could get out of the sale if the owner can't have the renters out in time. Quote Link to comment Share on other sites More sharing options...
milovany Posted November 16, 2015 Share Posted November 16, 2015 Yes, understood. I was thinking if all we're on board with the idea. Quote Link to comment Share on other sites More sharing options...
TammyS Posted November 16, 2015 Share Posted November 16, 2015 Some leases have a termination clause that comes into effect if the property is sold, but not all of them. And it has to be there when they sign it; the landlord can't exactly add it in later on if it's convenient. ;) If the tenants refuse to move until their lease is up, there's not much the current owner could do, but I suppose making that part of the offer means the buyer could get out of the sale if the owner can't have the renters out in time. Usually, in these situations, the landlord bribes the tenant out in some way (cash, or a free month while waiting for settlement, or something). 1 Quote Link to comment Share on other sites More sharing options...
Seasider Posted November 17, 2015 Share Posted November 17, 2015 If you have access to both the big house and the apartment, split up and one go in each part and test how thin the walls are, iykwim. Quote Link to comment Share on other sites More sharing options...
Starr Posted November 17, 2015 Share Posted November 17, 2015 Its the Victorian home that would give me pause. How much remodeling and how much is te heat compared to newer house. Quote Link to comment Share on other sites More sharing options...
momofkhm Posted November 17, 2015 Share Posted November 17, 2015 I would look at it and consider it, but my kids are much older than yours. At my point in life, I'd have the apartment as an in-law suite. Or save it for my parents. Or simply a guest suite. I probs would not rent it. But yes check on the renter already there. Quote Link to comment Share on other sites More sharing options...
Anne in CA Posted November 17, 2015 Share Posted November 17, 2015 If the renter that is already there is good I would use the rental income to help offset the cost of the garage you will have to build, but not replace the renter when they leave with anyone less than stellar. It wouldn't creep me out too badly to share wall with a renter who was respectful. But I have a friend who fixed her garage into a little suite and rents it out for the cost of her house payment to college students. This only goes well half the time. Sometimes they want to be friends, one hooked up with her adult son when he visited, one stole some stuff from her, but she found out and got her stuff back. But, still... for two years she had a great renter who was almost never home and paid for six months of rent in advance at a time. I think she has a good renter now. Quote Link to comment Share on other sites More sharing options...
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