All Forum Posts by: John Friendas

There's a house I'm considering buying with a business partner as an investment rental. It would rent for what I assume $2,500 with one renter or $3,100 if I did rent by the room. It is an old house but has been completely gutted and rennovated in a Midwest state with a flatline population growth. It's near where I live though. Based on its price and rental income do you think it is worth it? It is a considerably good price considering the area, I'm just not sure on whether the rental income is worth paying for.

Apart from about $10,000 it is fully rennovated and ready to be rented out within 2-3 months.

Thanks for any advice!

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How would you go about getting a 2nd home mortgage, for another quadplex in my situation?

I know some banks require it to be located far away as a vacation home, and to be single family. I am okay with moving with the sneaky rental BP strategy. I'm looking at fixer uppers that are considered livable (heat, plumbing, etc) and I think my DTI will be sufficient once I get renters on my current quadplex.

Just trying to plan ahead, thanks!

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Update: Renting rooms out and treating it as 2 units will probably be the best way to go about this. I called zoning and they said I could rent rooms without a problem. I will try and have some quality of life features like a kitchenette, storage, and locked bedroom doors. But the rental income from renting 6-8 bedrooms instead of 4 separate units should be bigger anyways, and I need the cashflow until my income becomes larger.

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Quote from @Max Ferguson:

First and foremost, where are you located?

Here in Co Springs that would probably work by renting out rooms with individual leases. We also have "AFS" or "accessory family Structures" that are not quite ADU's but are separate units. Depending on where you are at maybe being able to designate one of the units as that would save you.

Personally I would call your local investment guru agent or property manager and see what you can do. With no bearing on local laws it's a little hard to advise in this scenario but someone local should have an answer or workaround for you!

Good luck and let us know how it goes!

Ohio, ADUs wouldn't work and it could not be zoned properly as normal units. It is legally a 2 unit and can only be used as that but I'm wanting to look for workarounds/subletting or creative leases. Things like a kitchenette and maybe a shared washer/dryer but with locked doors.

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Quote from @Mark Stoffel:

Is the building a single building with rooms for rent or individual units with separate entryways? If the former you shouldn't have any issue renting the rooms to a single unit. If the latter, don't get fuzzy with your leases. As They say, "You don't want to break the law when you're breaking the law." Be forthright with the city on trying to do the right thing. In most cases they will try and help where they can.

Not saying this is right or wrong but I had a similar situation with a property and after getting past the underwriting and securing it I went to the city (Atlanta) and said I just acquired the property, realized it was a quad that was converted from a duplex sometime in the distant past but the building was still zoned as a duplex and wanted to go through the process of having it moved to a quad. In this case the land was zoned R3 for 1-4 families still and it was just the building that had been converted illegally. Once they realized they could increase the taxes and the city trash collection on it they converted it with not so much as a notice to me. The increase in value to have a legal quad has been well worth the additional annual fees.

As for the mail, put out four boxes aligned to the units in the leases. Same for other utilities. The Universe has a way of unfolding as it should in those matters.

Good Luck.

It is a single old house. The front, back, and side door are all different entryways. They said they will not rezone as it is close to the city center. Each unit has a kitchen and if i were “renting rooms” it would basically be trying to do 4 units but appearing as renting rooms. Maybe they have to share one room like a laundry room (but still locks so other people can’t enter their unit). I’m trying to see if I should do that or just go all out separating the units with separate leases even though it isn’t zoned properly.

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I looked at the zoning code and there is no restrictions on locks, kitchens, or being related. Would tenants care that much about sharing a lease and technically an address if all of their living spaces were locked from eachother?

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I have a property zoned as a duplex that is basically a quadplex, it is one big old house. It can't be rezoned and is not grandfathered I asked and I know there could be zoning issues. There is functionally enough space and parking. I need it to work as a quadplex so moving forward, I would appreciate not getting warning posts about zoning.

Should I rent it as 2 units and put people on the same lease but keep their residences separate with a door that can just stay locked or something?

Should I rent it room by room while keeping the residences separate?

What do I do about mail?

Thanks!

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All Forum Posts by: John Friendas

John Friendas has started 9 posts and replied 27 times.

Post: $280,000 house that rents for $2,500 Worth Buying?

Post: 2nd Property Quadplex

Post: Using Duplex as Quadplex

Post: Using Duplex as Quadplex

Post: Using Duplex as Quadplex

Post: Using Duplex as Quadplex

Post: Using Duplex as Quadplex