When I bought my first home, it was in 2007 and these were the "glory days" of very little bank oversight where I could tell them what I made without proving it. Post recession, you have to prove every penny you make (being funny, but a little serious). So the house I bought was about $50k outside of my comfortable price range, but I wanted to buy it because it had a 1 bedroom apartment attached to it that was renting for $500. My payment was $1,100 all-in, and I was getting $500 in income, so my 3 bed, 2 bath, $175k home was costing me $600, brilliant 😳!
As I look back, this got me thinking, what are other methods where people can make money on their home, and as you can imagine there are several ways:
I think everyone has heard of Airbnb, but if you haven't, it's a person-to-person rental site. It's usually cheaper than a hotel room, in prime locations, and I think overall better. So here are two ways you can make money with Airbnb:
Rent out an Extra Room
I know that can sound sketchy, renting a room to random strangers and all, but it could be lucrative. I am seeing $50 to $200 a night on Airbnb right now in the Greenville Area. You can also check out recent reviews on potential guests from their previous hosts/stays before confirming their rental request.
Rent out your Home for a Weekend or Holiday
Do you know that you are going to be out of town for Thanksgiving? Why not let someone stay in your home during that time? I know it sounds weird, but my mom always wants all of us kids to stay with her during the holidays. Well thats 6 adults, 9 kids and 3 dogs in a 1,200 sqft home sharing 3 bedrooms, 2 bathrooms....we'll definitely be close together for the holidays. So people like me would gladly rent a house in the same neighborhood as my mom.
Remember the recent 2017 Solar Eclipse excitement that brought people in from all over just for that miraculous weekend? Imagine having a room available to rent out for a few days with an event bringing in high demand for places to stay!
Greenville is also a destination people want to visit, why not benefit from how much growth we've seen over the past 5 years?
Rent out your Yard
You read that right. People are willing to even rent out your yard. Think of college kids or people just making their way through town to their destination, or in town for a concert and they just want a secure place to pitch a tent for the night.
Would you rent your back yard 🏕 for $20?
Buy With Renting In Mind
Think back to my experience from earlier, I bought with the intention of renting out a portion of it. There are plenty of homes out there that already have "in-law suites, teenager suites, garage apartments" or are even a duplex.
This is a great way to have people help you pay your mortgage, especially if you don't want them physically in your space.
This one is a little bit of all the above. The Pros: you aren't renting to total strangers, you can count on long-term income, and you know these people. The Cons: they won't be out in 24 hrs where you'll never see them again; you are the landlord, so they will also come to you with repair requests on the home.
I have had several friends that have gone this route, and it works well. You can afford the home you buy, but you may not want to pay that much. So get two roommates to round out your 3 bedroom house, charge them rent and split the utilities. You might be able to live in your own home for free.
Right now interest rates and home prices are still low. Why not buy now, and use one of the above scenario to help offset the cost? So if you wanna strategize about doing something like this click on my contact below and lets get a beer or coffee and see if it's right for you.