Buying a Home with a Rental Unit
Buying a home can be full of difficult decisions; and as interest rates rise, some buyers may experience more difficulty planning financially for the property they envision buying. For people looking for a different way to help pay their mortgage every month, choosing a multi-family property or a home with an attached rental unit might help offset costs and provide the monthly income that makes their mortgage payment a little easier to accomplish.
What Is an Attached Rental Unit?
An attached rental unit, formally called an Accessory Dwelling Unit (ADU), is typically a smaller living space adjacent to a main home. It might be a tiny house in the backyard, or something more like a self-contained mother-in-law apartment attached to the house. It can even be a small apartment over the garage. In many cases, it is even a 2-Family Home where the owner lives in one unit and rents the other. There aren’t a lot of rules about what an...