Pros and cons to buying Mother-in-law Rental

[Matthew Kimball]

I was curious if anyone has had issues owning a rental property that has a mother-in-law unit in the basement. with not having sufficient parking or the neighbors calling the city to say there were multiple renters.  Since in most cities it's illegal to rent the top and bottom with it being zoned residential.  I am worried if I buy a house that has 2 separate entrances top and bottom that neighbors will call the city since parking is tight and then ill be stuck with a rental that can't pay for itself.  Any way just curious your thoughts on Single family home that has an up and down to rent if it's worth it and the pros and cons?  Thanks

[Huong Luu]

@Scott Isbister The treatment of illegal suits defer on the city. Many properties in Toronto have been 'grandfathered' in, so they haven't had any issues with the City. Some properties in Edmonton AB, have been fined and shut down by the city. So it really depends on the city. If the property has been 'grandfathered' in insurance and lending should be okay. Brokerlink and Park Insurance will review your property for insurance, you just have to disclose it to them.

@Matthew Kimball If the numbers are positive with 1 unit being rented, then it may be worth it. Are there families looking to rent that have more than 3 kids, or need to have their grandparents live there. You know the area better, so if you think the neighbors are going to complain then it isn't worth it. Can you use this to negotiate a lower purchase price? Are there discussions with the City to allow multi unit renting? 

@Matthew Kimballundefined