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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP. I have no plans to retire. I like what I do and have a flexible schedule. I’ll probably top out around $250K in a couple of years. My biggest concern would be if I can’t work from illness. I want to be able to house a helper if I need one, which I currently can’t do.

I thought this seemed like an opportunity to buy my dream house and an investment property at the same time—the small wing of the house is readily divisible into a 2 story 1BR 2BA Apt, I would just need to install a kitchen in the LR. So I could depreciate part of the house and also deduct some expenses & improvements on taxes against the rental income.

It does sound like a potential maintenance saga/money sink though. [/quote]

If you've never owned a house where you've done a rental conversion, you are almost certainly [i]vastly[/i] underestimating the cost in time, effort, and money of adding that kitchen and making it a real rental.  Renovating a kitchen is one of the most expensive remodel projects there is.  Adding one, even more so.  If it has no kitchen now, you are talking about likely completely redoing the electrical for at least that room (to handle appliances), potentially running a gas line, redoing ventilation and HVAC, adding all new plumbing (not just relocation), and probably fixing discovered issues in the subfloor and building out the wall structure (kitchens often need stronger framing for cabinets).  That's before you even get to buying appliances, adding cabinets and counters, adding a sink, and other finishes.

And that is just the kitchen.  If it is a real rental, you want to for a bunch of reasons get it legally recognized as such.  In DC, that involves getting a certificate of occupancy, but your mileage may vary depending on location.  But usually there are code requirements you need to meet (that a 90 year old house probably doesn't) like a certain number of and size of egress points in the case of fire.  Those cost money to fix, and sometimes are impossible to fix.  Even if everything is already perfect, that's still more permitting applications, and potentially a negotiation with your neighbors.  And this is all before you get to the process of actually finding and vetting renters.

Point being there is a big difference between a house that [i]has[/i] a legal rental apartment, and a house that [i]could have[/i] a rental apartment.  I would make this decision assuming it will never actually have a rental apartment.  If you are still fine with it financially, then good.  If you were banking on that to make the finances work, I would pass.[/quote]

I am wondering what jurisdiction this house is in. In Fairfax County I [i]believe[/i] this would straight up be disallowed under current regulations (although when zMod passes again, maybe that changes)[/quote]

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