All Forum Posts by: Chris Watkins

That's the impression I am getting - to go with the accessory apartment. Thanks all - for the advice and perspectives. 

Yeah, I'm definitely not familiar with the high end movie room features and options. Nor do I think I would put that kind of money into it because of the lack of ROI... but you have a point with the basement apartment being in the same house... Having done that for 6 years already, it's not for everybody. And sometimes it really is terribly inconvenient. I do LOVE the idea of the income and at worst, the potential to rent it out should money become really tight for one reason or another.

I like what you said, @Roger Vi, that I would be paying $500-$600 per month plus initial expenses for the theater. Sometimes I hate losing more than I love winning - the thought of "losing" that each month is a big deal. 

@Joe Splitrock - I am really going to look into finding a design that is conducive to the mother in law idea. Having the legal accessory apartment in the mother-in-law space simply would mean then have the potential to use it as such if they wanted. Otherwise, the new buyer will have the option to use it the way they want to... I like it. 

Thanks for all the input guys!

@Mindy Jensen - You are right - most people that would buy this type of home don't think like us about rental income and being a landlord. I do worry that I would scare away buyers if there were an accessory apartment. So maybe that is my answer. It would be nice to be able to have the best of both worlds - like somehow find a way to inexpensively put accessory apt in basement and rent it out as such, and then when we are ready to move, do a few quick modifications and have that theater room set up...

@Ashley Schroeder - Great questions. 

Have you looked into what rental units would run for? If the cost is worth it?- Yes, we could rent it for around $600 per month and it would pay for itself within about 2 years.

Also, would you be renting out that space? Or would it sit until you sold the home? - I definitely would be renting out the space while it was there. I did that in my last home that I just sold as well. It wasn't perfectly convenient but it was worth the inconvenience to have that income. 

Would you use the man cave/theater room space while you lived in the home or would it sit? I would also use the movie room/man cave every day as well. I work from home and would have a separate office down there as well as movie nights with friends (which I used to do a lot in my last home as well). 

 Do you need the extra income? No, I don't NEED it but i'm not doing well enough to turn it down if it's a good long term option :). 

What are properties in your area like? The market here is such that many people have accessory apartments. It wouldn't be extremely rare to have that. If I did the apartment idea, it would be cool if we ended up finding the right buyer would be offer a higher price to purchase the house because he was planning on the income from the basement to offset the higher price. 

Have you checked into any restrictions regarding placing a rentalable space in your home? We are not part of an association and the city is modifying their accessory apartment regulations so I believe I will be able to get it permitted if I wanted to. 

These questions sure made me think deep about the situation... thank you for the thoughts.

@Joe Splitrock - Wow, that is something I hadn't thought of before... Thanks for the insight. As much as I would love the movie room idea and the ultimate mancave, it's hard to ignore the extra $600 per month rental income potential....

I just closed on a new primary residence for me and my family here in Utah. The intent was to buy a home with awesome potential that we could work on for the next 3-5 years (build sweat equity) then sell for a nice profit. The basement is unfinished and I want to know what will bring more value to the home - adding a legal accessory apartment or a nice movie theater room in the basement?

More about the home, neighborhood, and long term plan:

Maybe a little more about the home will help shed light on the decision. This home is really custom with high end unique features like incredible 40 ft vaulted ceilings, sky light windows, custom mosaic travertine floors, archways, radiant heat in the floors, lots of land right against the mountain with incredible views, orchard, and over 3000 sq ft in main and 2nd floor living (not including basement sq ft). Basically, the home has high end potential but the previous owners sort of let the home and yard go - so we got an incredible deal on it. 

The neighborhood is nice (all homes built after 2000) but not all custom like this home. 

Long term plan for this home is to live in it for the next 5 or so years while putting sweat equity into it - making it feel more "high end". However, I do realize that there is a chance that we will not want to leave...

Which Should I Do? Accessory Apt or Movie Room/Man Cave?

In the end, I want to know whether I should work to get a legal accessory apartment permit for the basement and finish it as a rental income source to offset the mortgage, or whether I should go all out and add a nice movie theater room / man cave. 

What do you think will add more value? I think they may end up costing the same amount to finish due to the fact that I would have to knock out a wall to add a separate outside entrance and a few other things for the apartment. 

Another question regarding offering with an LLC - Do sellers typically frown upon working with an LLC buyer? Somewhere I had heard this, and they suggested that I offer in buyers personal name and then transfer deed to LLC afterwards. Any input on how it is typically perceived to get an offer from an LLC?

Checked with the city, they came back with no flexibility and that, even with the chance of applying for the zoning change, it would never go through due to configuration of the property. So I passed on the deal. 

Welcome to BP Scott

@Skyler Smith- This is general to Utah county, not necessarily in Springville. My current primary residence is in Springville but looking all around the county for the right fit. I am verifying now with my LO what options I have for renting out my current home. I have been hesitant to rent out my current home because we've spent the last 5 years remodeling and improving the home to such a degree that, with it being in "move-in ready condition", I would be worried about how renters would take care of it from here on out. 

The lenders I've talked to all have different opinions about what I would qualify for. Because of the accessory apartment in primary residence some say that qualifies me as an experienced landlord others don't. The only reason I prefer the lender I do at the moment is because they can put in under 3.5% on a 30 yr conventional which nobody else can. But feel free to send me your Logan LO. I am always looking for flexible lenders.