Live in Basement, rent top portion

[Andrew Wright]

Hey All, 

New to the site and so far I really love it! Like others have said, there is a boat load of excellent information on here. I little about me, I am not married, 30, consultant, no debt, decent amount of savings, and about to end a lease where I live with roommates. I am considering buying a house with a large basement, which I would live in, and renting out the upstairs/larger portion of the house to a few roommates or a family. Im having a difficult time finding a house that makes sense in Arlington Va. It seems the prices are so high, my ROI would be marginal at best. In considering this option, I am thinking of renovating the basement to be a legalized separate entity so I could have two separate rental options once I move out and of course fixing it up like I want. Someone also mentioned that I may want to consider a 203K loan. Does any one have any advice to: 1) get the biggest bang for my buck in Arlington Va 2) 203K loans 3) creating two legal housing entities out of one, or 4) living in a basement while tenants live upstairs?

Thanks to all in advance!

[Eric Gutierrez]

Andrew make sure you are 100% positive that zoning/ any other restrictions will allow you to take a single family and add a unit.  Right now in Minneapolis the city would shut that idea down pretty quickly in most situations.  I have heard that may change in the future.  That can vary a lot city to city so just look into it before you are in contract to buy.