Analysis for SFR with mother in law suite for rental

[Atta Bari]

Hi,

Looking into a potential deal in white settlement, TX which has good cash flow and has two properties on the lot. Zoning is done as SFR and another unit at the backend is as a mother in law suite. Both units are set up as 3/2, but the mother in law suite is smaller than the main unit and has been rented previously for 900 and 1250 for the main unit. Utilities used to be split by the tenants and used to be on owner name.

All aspects look good to consider it as first investment property except mother in law suite. Concerned about if there is anything I need to aware which could potentially kill the cash flow. i.e hard to rent out the mother in law unit/main unit, utility distribution, hard to sell the property, etc, or anything that you guys think I should be aware of!

Thanks in advance,

[Ronald Rohde]

Originally posted by @Atta Bari:

@Bruce Lynn Thanks for answering. 

Yes, Going to checkout with WS city about renting other unit. However, came to know that city is not allowing rental on mother in law suite on similar property like this and this is what i'm going to check with them first before i commit any deal.

I like the idea for asking them to consider changing zoning. Rental inspection and zoning is something also need to be checked with city?

Any idea how much zoning would cost and who is going to bear cost, seller or buyer?

Thanks

 Ballpark $10-15k with no guarantees that they'll agree to this use in a neighborhood. Negotiate, either party can pay