Buying and renting out neighboring house

[Brian Gray]

Anyone bought a house next door to their primary house and rented it out?  We've got a foreclosure opportunity on a neighboring house (back side neighbor).  Neighborhood is $300k range homes.  Home needs a couple grand in repair is all.  $192,000.  Rents (when available in the area) are $1900 - $2400.

Will it be hard finding a tenant due to the fact that we live next door?  What do renters think about that scenario?

If I can keep my all-in costs at $200k....this seems like a good opportunity considering the neighborhood.  Lots of new homes going up, driving up the value across the board.

[Alain Perez-Majul]

You could always let property management take over. You can still oversee the home, without the tenants knowing you're the owner. Might even benefit you, since you could inquire about the house in passing conversation "out of curiosity" or small talk lol. And if poop hits the fan, you're not the bad guy since the management company would take care of any issues- and it also wouldn't get awkward for you haha.

But that's obviously all depending on if for you self-managing it is more worth it. My $0.02.