Income producing properties are a great way of taking the financial strain off of a mortgage payment. However, haphazard design, and poor quality can create a financial burden instead of financial relief.
A few tips:
1.) Know the regulations in your area. For example, what is required for a LEGAL basement apartment?
2.) Know the rental rates in your area so that you can spend appropraitely. It is important not to spend more than your apartment can cover. The goal is to make money not break even.
3.) Carefully screen tenants. Check credit scores, verify employment, review job history, call references.
4.) Know landlord/tenant law. There are tenants out there that know the laws better than their landlord. Make sure your tenants are attempting to use you for their own personal gain.
Follow these tips, and get qualified help and you could easily be on your way to reducing your mortgage payment and increasing equity in your home. The ability to make money via income properties will vary greatly across the country so do your homework.
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