Buying Home - Living in Garage Apartment and Renting Home

[David Warren]

Hello, I am a single guy looking to purchase a first home in the Houston area and am looking to buy a property with a garage apartment so that I can live in the garage apartment and rent out the home. I am looking to try and find a 3 bed 2 bath house so that it could be rented out to friends or a family in order to maximize that investment. 

The area that I am looking at has no HOA restrictions and is a hot market at the moment with lots of properties that have been renovated over the last 5-10 years. In addition, a lot of people in this area have bought their house and then rented out the garage apartment which is the opposite of what I am trying to do.

For my scenario, what should I be thinking about and looking for? Are there any spreadsheets or mathematical rules to look at for this kind of purchase and how would you all go about this process? Would the rental rate that I receive be discounted, particularly if a family chose to live in the home, knowing that the garage apartment is being occupied by a tenant and the landlord? Any thoughts and tips are much appreciated!