Sometimes the best way to get into the real estate market is to buy an older home with a separate side entrance to the basement. Your basement could potentially become income property. This added income can go towards your mortgage which can leave you extra money for bills, renovations, anything that you did not have that extra money for in the past. Or it can just alleviate your mortgage pressure which will allow you to live in your home worry free.
I know that some people don’t like the idea of having people living in their house for fear of damage, having to chase tenants for the rent, or just a feeling of losing your privacy. These are legitimate worries, however, if your basement apartment is clean, bright and well maintained, you will attract people with a steady income who are looking for a decent place to live. You will also have to take the time to screen your potential tenant, and hopefully get references regarding income, and reliability. A good tenant can be a wonderful way to help you get into, and stay in, the real estate market.
I can tell you, that my grandparents always had tenants in their basement, and not only did it help them financially, the tenants also helped out with the snow shoveling and grass cutting. They had wonderful tenants who kept their apartment clean, paid their rent on time, and actually became friends to my grandparents who ended up keeping in touch with them long after they moved out. This doesn’t always happen, but good tenants are not hard to find, and can turn out to be a blessing to the home owner who really needs that extra income.
So, clean up that basement apartment, do the renovations that you need to attract a good tenant, and then enjoy the fact that your mortgage payments will hopefully be cut in half or better. You may even be as lucky as my grandparents, and form a life long friendship with your tenants, who may become good and helpful friends.