Quote:
Originally Posted by Build-It-Break-it
I live in California to and I'm about to close on my house that has a studio type 800 square feet apartment build into the side of the shop in the rear of the house. It has kitchen, shower, sink, stove, microwave,central air/heating etc.
When I asked a few of my friends if they would rent something like that for around $800 a month they jumped on it. My mom is going to stay there but I was curious as to how much I could rent it for.
At $800 bucks it would drop my mortgage down to $1200 bucks which would be great (not possible right now due to me letting my mom stay with us so I can take care of her).
I think it's worth it to a point. Being a land lord and dealing with people's bad habits, guests that aren't yours, possible theft, constant repairs of the rental, etc etc might not be worth it just to make a "profit" that might end up costing more in the long run.
That said, I'd do it if I had the rental already built or I would see a return on investment within 6 years or less.
Id check contractors estimates and check permits to see what would be needed to make it habitable (windows, fire exits, etc). Also plan financially for the unexpected when walls are removed and repairs not estimated are needed.
Your money might be better spent investing in something else that wouldn't involve people living on your property and see a larger profit faster.
|
That would easily be $1850-2400 in the Bay Area.