How to rent out a house that has two flats in the backyard.

[Connor Deneen]

Hi,

I am looking at a property that has the potential to cash flow really nicely if all three units are rented out. The only problem is that I'm not sure how I would get someone to rent out one of the units, let me explain.

The property lists as a single family home that has 5 beds and 4 baths. But in reality, it's a house (three bed two baths) and a property in the backyard that has an upstairs and downstairs that both have their own entrances and each have their own bedrooms, kitchens, and bathrooms, basically lofts. Each loft is currently rented on a month to month basis as the house is on the market, and the tenants are paying $600 a month. The house itself is where the current owners live but I could easily pull another $1000-$1200 out of it if I had renters in it. So total cash flow each month would be close to $600 a month. (I'd be using the VA loan, and asking price is 200k).

The problem I'm having is how successfull would I be in finding tenants to occupy the house.

The house is in a very heavily student-naval-aviatior populated area, so I could easily target them (I'm one myself), but I feel like this would be limiting my market. I mean, what family would want to live in a place that has strangers living in the backyard? Unless of course the family wanted to use the loft as a mother-in-law sweet or something along those lines. Thoughts?

[Deanna McCormick]

So what is the property ZONED for?? yes current owners may be able to rent it out because they live on premise,, but legally what's it rental status.. if it is not owner occupied.

To rent out is usually never a issue people always need housing and if it's in a decent area you'll get someone to rent..

But legally what are your limitations..