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Updated over 8 years ago,
Limit on renting rooms to unrelated individuals?
Specifically looking for Renton area. I didn't see anything in the city code, but may have missed it. There was no outright ban or limit to number of people, just a mention of the definition of family being any number of related individuals, or up to 4 unrelated individuals. But no mention of no more than 4 unrelated individuals living in a house.
The reason I ask is because the house has a MIL apartment that is completely seperate, and if I could rent out the rooms in the main house, I'd be able to move into the MIL and rent out the rooms, pay for all expenses including my own living expenses! Nice thing about this method is also that I can keep the entire three car garage that is below the MIL for myself, since room rentals don't typically include the garage like a house rental would.
I learned of the idea from Phil Pustejovsky, who mentioned it as a way to turn a house into a cash flowing machine. Rooms in my area rent for $700 a month and I have 5, including a huge master bedroom with huge walk in closet and private bath....This one home purchase can catapult me into retirement (I was already FI but am still working and investing while the getting is good). But if I can only rent out some of the rooms because of any limitations on unrelated occupants living together, well, then I will have a reduced cash flow.
If I rent out the MIL AND the rooms separately, I would have 2K a month cash flow after all expenses! Plus a $600 a month principle payment!!