[quote=AN][quote=ocrenter][quote=AN]Interesting idea. So, you can get a primary resident loan, seal up that wall, and voila, you have a 1 bedroom apartment to rent out. The number might work out very well if you rent out that “apartment”.[/quote]
Best part is you’ll be able to charge LJ adjacent rent![/quote]
I’m actually seriously interested in this design and wonder if it’ll catch on. Especially in more desirable areas. Imagine for a second, a 3000 sq-ft house in Carmel Valley current selling for $800k, downing 20% and getting a 30 year fixed FHA loan, your payment would be around $3800. That 1 bedroom + garage apartment can easily rent out for at least $1600 if not $1800. So, in essence, you get to live in your 2200-2400 sq-ft house with net payment of ~$2k. That’s unheard of in an area like Carmel Valley.[/quote]
It would pencil out nicely, except rent does have to include utilities. It is almost like the good old days of building a casita in the backyard and renting it out, except the builder already did it for you 90% of the way. I do wonder about how the neighbors would feel about it. I suppose since the tenant will have his or her own garage, it wouldn’t matter too much. The income would be under the table as well…
