Renting out the house?

Discussion in 'Homesteading Questions' started by jnap31, Oct 15, 2006.

  1. jnap31

    jnap31 garden guy

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    Next summer I was thinking I could build a neat house on the foundation right below where I live now and I could rent out the main house for just $350 a month we would share the attached wash room and the electric bill (I will have a sundanzer freezer and use a very minimal amount of electric so just run an ext cord to my future house) I am going to be using catchment and well water rental would be on rural water bill is $50 or so a month. Heat is with a wood stove a two or 3 year supply of good wood delivered from a local mill is $300. There are all kinds of good paying carpentry and construction type jobs in Fayetteville 45 min west of me the area north of fayetteville around bentonville is really booming so who ever rents will have no problem working there are always jobs in the chicken or cannng factories if nothing else. They can keep a few chickens or poultry and some animals and they can have some of my excess veggies from what I dont sell at market. The university of AR is 45min drive west also. My mom is planning on coming to the place in 4 years but by that time they could save up enough for a place of their own and probably pay cash at that. Well what do you think sure privacy would be a little less but it would give me an income while I am building my gardens/beehives up for selling at market full time. DW sent me a letter the other day begging for us to not move again she was watching the butterflies in her flower bed and the kids playing and said she has really grown to love our 2 acres, So I am hoping that I can convince my neighbors to sell me an acre or two, or the man that owns 3000 acres and is not using part of it next to my house who will not sell to anyone will atleast let me use it to make pasture for our milk cows and room for an orchard and more garden area in exchange for some of the produce or my planting him an orchard. The house I build will be on a good foundation but it is only 30 feet from the main house I want to make it out of stone on the bottom story with wood floors and then a strawbale top floor with slab wood sides and an over hanging epdm roof with an attached green house, It gets sun better than the main house as their are big trees south of the main house. oh yeah the rental is 1400 sq foot and has oak floors new gas stove and water heater I am going to be putting a bigger porch on it this spring and hopefully new windows.
     
  2. Alice In TX/MO

    Alice In TX/MO More dharma, less drama. Supporter

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    This is one of those personal decision issues. We can't tell you if it's a good idea or not. Some of us have had good experiences with residential rental, and some have not. We also can't tell you if giving up your privacy will work out.

    Make a decision and the best of luck to you. :)
     

  3. Wolf mom

    Wolf mom Well-Known Member

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    How much of the $350.00 is going to the 2nd house? If it doesn't make the complete payment, it's not worth it.
     
  4. dlangland

    dlangland dlangland

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    Sounds like a nice thought and something I read about quit often, but no, I could never do something of the sort as I value my privacy far too much. I have had either absolutely wonderful, meticulously clean renters, or renters of the opposite extreme with rarely an inbetween over the yrs. The thing about rental income which I am sure you have already taken into consideration, jnap, is it's not all profit, and is supposed to be declared on your federal taxes as investment income, minus expenses, of course, which depending on where you sit, can sometimes be enough to bump you up into a dif tax bracket. The only way you would reap $350 a month is if you weren't intending to carry renter's insurance, then there's taxes, all that good stuff. I always have made the renters pay the utility bills. You may think they are up to living your lifestyle, but you may also be surprised how much water and electricity some people can use without even trying. Best of luck to you. Deb
     
  5. tamatik

    tamatik Well-Known Member

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    I have had very bad experiences with renters but then < I was 1500 miles away..at least with you being so close u can see things that happen when they happen.
     
  6. Shadow

    Shadow Well-Known Member

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    Me and the wife have had rentals, finally decided to sell out pay the taxes and chaulk it up as a lesson learned. Yesterday we spent all day buying building material to repair wifes sisters house she sold on a rent to own contract and did not inspect the house often enough. Four doors totaled, holes in most walls, new floors in bath, kitchen, dinning, new ceilings in bath , living room, kitchen, and dinning room, and you want to give up your privacy and live 30 feet away from someone. NO
    Your property taxes will double, at least thats what happens here in Ala, you lose your homestead exemption, the insurance will be higher and you will have to have full coverage or you take the risk of loosing everything you have. You will have to have coverage on your house as it is that close or the insurance company will probably not insure the rental. Its a pain and not worth it. Just my experence over the past 40 years.
     
  7. anniew

    anniew keep it simple and honest Supporter

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    I think you're biggest liability in that plan is that you will need to spend ALL your free time building the new house (and repairing the old if renters are bad), rather than doing what you aim to do as far as your market gardening. You'd probably be better off getting a 20 hour a week job so that you have cash flow, or at least have a full time job on the off season. There are only 24 hours in everyone's day, and your dreams can work you to a 48 hour day!
     
  8. jnap31

    jnap31 garden guy

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    Your probably right anniew I will have a full plate with out the extra worries and like you said if I need extra $ I can work part time.
     
  9. dave85

    dave85 dave85

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    "doors", mostly houses, duplexes and triplexes.
    I've helped people and made out. Also had it backfire too many times to count.
    I say, don't do it. You strike me as a guy with a good heart.
    Annie's advice is good.
    Dave
     
  10. jnap31

    jnap31 garden guy

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    "ok" I will not do it sounds to risky. Thanks ya"ll.
     
  11. Loriann1971

    Loriann1971 Well-Known Member Supporter

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    Maybe just keep you ear out for someone that would be a good renter...don't rush into any renter just to do it...but if someone comes along that yo uthink is a good fit, then go for it.

    There are good renters out there. Dh and I rented a number of houses over his 20 year military career and everytime we moved out of a house, it was cleaner than when we moved in. Some houses even had (owner approved) improvements like a fence or a shed or even a newly painted room.

    Just don't rush into anything and you will be ok.
     
  12. comfortablynumb

    comfortablynumb Well-Known Member

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    two words...

    "draconian lease"

    photograph it all before you rent it, invantory the stuff around the place, and outline every tiny teeny weeny detail of the tenants rights and responsibilities.

    dont be shy or nice. make it as anal as you can.