Good afternoon fellow RE investors!!!
I am looking at a property that meets all my investing criteria (50% LTV after repairs, 2% rents, etc) however I am wondering about garage apartments. This property has an efficiency above the garage that could easily rent for $400/mo on top of my house rent. Do you find it harder to rent house if a garage apartment is rented? It has its own access, meters and off street parking. This is a historic neighborhood and many houses have these garage apartments. Just wanted to know your thoughts. Happy investing!!!
I’ve owned property in historic districts with garage apartments and would highly recommend. Your situation seems optimal; separate access, meter and parking. Renting the house with a garage tenant in place should not pose a problem as renters are accustomed to living near other renters. Go for it and enjoy the increased cash flow. PS…You should check to confirm the garage apartment has a CO in place and is not illegal.
If it’s conforming to the neighborhood it should be easy to rent to a younger person who can do stairs.
You have a greater liability issue with stairs. I have been sued twice for slip-and-falls on tenant stairs in California, that sue-happy state. I would be more concerned about elderly and children with stairs, so it does limit your tenant pool.
Better double-check those stairs, add sand-paper glue on treads, make sure they are slip-proof in wet weather. Have beefy hand-rails that a heavy tenant can’t fall through.
Furnishedowner
Remember per Federal Equal Housing Opportunity, you’re not allowed to “steer” certain people either to or away from certain units (in this case, your garage unit w/ stairs).