House Hacking - Single Family w/ Finished Basement

[Nathen Strife]

First time poster and first time House Hacker. (Hopefully, still finding the right property)

I’m looking at several properties around Anderson, SC. Properties are single family units with finished or un-finished basements (looking to do some renovations myself) 

2-3 year plan is to live in the property and rent one unit out. (Basement or upstairs) 

3-6 year plan is to move out and rent both units.

 
My question is what is the suggested approach for renting a unit out of the home and living in the other?
- Do I need to have a business set up?

- Do I need to look at Zoning to rent a portion of my primary residence? 

Any help and suggestions will be greatly appreciated! 

Thank you, Nate

[Johnny Lynum]

Hey Nate, I love to house hack too (used it several times using my VA loan)!

First off, solid plan with Anderson, SC – love the flexibility of those basements! Here’s a quick take on your questions:

1️⃣ Do you need a business set up?
No need right out the gate. Since you'll be living there, it's more like managing a roommate or tenant situation. However, once you move out and rent both units, forming an LLC might be worth looking into for liability protection.

2️⃣ Zoning concerns?
Yeah, it’s worth checking with the local zoning office. Some areas might have restrictions on renting portions of a home, especially basements. If they have any rules about short-term vs. long-term rentals, you’ll want to know upfront to avoid headaches.

Also, keep an eye on tax implications – renting while living there can open up some sweet deductions. :) 

Sounds like you're setting yourself up for success! Knock out that first property and you’re on your way to building wealth one unit at a time. On to the next one! 🚀

Good luck, brother – feel free to reach out if you need anything else!

Johnny

[Gregory Schwartz]

@Nathen Strife

While you live there, zoning likely won't be a major issue. Renting out the basement isn't much different than renting out rooms in your house. Another option to consider is using the space for Airbnb or mid-term rentals.

Here in Texas, basements aren't common, but I found a home where the third bedroom had its own entrance right off the driveway. We converted that space into a mid-term rental. We keep the main house separate by locking the door between the bedroom and our living area, so guests only have access to their room. This setup brings in around $800 per month.

Get creative with it, house hacking is an amazing investment strategy!