All Forum Posts by: Jeanette J.

Wow, that's a lot of stuff to think about. I think I'll troll CraigsList for a while and see how many basement apartments are in my area and maybe even call a couple of them to talk to the owners and get their feedback. As far as the basement being damp and dark, that's not the case here. The ceilings are over 7' tall with the exception of the ductwork here and there. It's very dry down there. What I really like about the basement is the fact that it's always cool in the summer. It would be a lot of work to convert to a rental. I will consider all of your thoughts. Thank you!

Well, $50,000 might cover a 20% down payment and some closing costs, but there's no way that it would be on a property that would bring in $800 a month. Another good thing about doing our basement is that we could do it in our spare time. We wouldn't have a mortgage payment looming over our heads. I also do not want to live with my tenants, but it seems like this would be a good direction to go while trying to get our real estate investing feet wetter. I plan on renting out the upper level in a couple of years. I was thinking about moving into another fixer upper and then renting it out as well. Of course, what I think and what hubby thinks are two different things!!

Thanks for your reply Brandon!

Hi guys… thanks for all the wonderful posts. This website has been incredibly useful to me starting out. I do have a question. My husband and I are debating on whether or not to convert our basement to a rental unit. We got an estimate to put in an egress door and 3 egress windows. I also got a ballpark estimate to separate the electrical. All in all, it’s going to cost around $50,000 to completely convert it, assuming that the city approves the rezoning. I can rent out the approximately 1100sf basement unit for at least $800 a month. With that income and the $500 income from our first rental, it could be paid off in less than 5 years. If we decided to move out in the future, we could rent the upstairs 2400sf for about $1400 a month. That would be about an $1100 income for the property per month after the mortgage payment including escrow.

Could you guys/gals please share your thoughts with me on whether this is a good idea or not. My husband is leaning towards taking the $50,000 and putting a down payment on another property. I’m leaning towards the basement renovation.

Not sure. I'm actually thinking about converting the basement in my home to a rental unit. I just got a quote today to install a door and making 3 existing windows larger to conform with code. I didn't even ask how much the windows would cost after he quoted me $20,000+ just to put in a door.

I don't think you would have to worry about zoning laws if you're already zoned for 3 units and wanting to add one or two more.... unless it isn't zoned multifamily already.

Is it worth it? Don't know. If it's zoned correctly, figure out how much it would cost to rehab it, and how much rent you would collect.

I may not be like most... and I only have 2 rentals, but I try to set up all the showings at about the same time and gather the applications along with the application fees. I look over the applications later and if they have no shot of being my tenant based on what they've filled out, I will call them and give them their app fee back. From the reactions I've gotten, that's not the norm. So answering your question... yes, I let them know.

I used the peel and stick squares from Home Depot in the laundry area in 2 of my units only because I was getting new water heaters installed before I had time to put in the rest of the flooring. I even prepped the plywood floor by painting it with primer as per HDs instructions. Some of the tiles pulled right off when I cleaned it later with the shop vac. My shop vac isn't that strong.... I had to glue those pieces down with liquid nails. I did the rest of the units with http://www.lumberliquidators.com/ll/c/Szechuan-Ming-Bamboo-Laminate-Dream-Home-St.-James-12SB-O/10024131

So far the flooring from Lumber Liquidators has only been installed for a couple of months, but installing it was easy and it looks fabulous!! I'd post a pic if I new how.

Wow Rob. I have called used appliance stores. It seems that they're all affiliated with eachother but use different store names. There are a couple I haven't tried yet. I've been so busy trying to renovate the other side of the duplex while showing the finished side to prospective tenants.

Thank you guys for the responses.
Sam, I don't know how you found that add. I followed the URL and saw the add, but when I search my local Craigslist, it doesn't come up. I'm going to call them tomorrow morning anyway. Thanks for doing that!!

Thanks for all your input. I guess I will make it a rule.

And Michael.... I just meant that she wasn't bringing in any income. If something bad did happen and her husband took off, I'm certain that I would not get any rent from her even though it would be stated on the lease that they are both responsible, even individually.

I have a family that wants to rent one of my units. The wife is a stay-at-home mother of three. Do I need to collect an application fee from her as well as the husband to run her background check? She won't be responsible for any of the rent payment.