When my wife and I got into real estate renovation investing for the first time installing an additional Granny Flat and renting it out in our rear lot was probably the stupidest thing I could envisage. It was so unpleasant an idea I didn’t want to tell anyone about it for a couple of weeks.
In the end I worked up the strength to bring it up after we began to bounce behind on the loan payments. The intention I explained was to get a Granny Flat or Granny Flats and lease it out to a foreign local associate professor given we lived near to a large institute of technology.
Myboyfriend immediately detested the concept. They thought it would thrust in on our yard. They also thought it would hash up the street characteristics of the home. It might end in us running hugely over budget in ways that would promulgate us more short on cash than before we started talking about it.
I went back to my home office and sketched out out the financials again. We met with the builder to talk through ways to limit the impact of the project contractors on the existing style, space, and privacy of our house.
In the meantime I reached out to Tech Institute manager at the university who affirmed that accommodation was at crazy shortages and they would be able to rent out 50 permanently let alone mine.
The quality of the Granny Flat was sexy and modern and it leased within a week.
The returns have been strong and simple. We’ve had it for 9 years now and have been able to pay reduce the total cost of the Granny Flats as well as a leading part of our loan without much effort at all.
I would strongly recommend this tactic to anyone considering a low stress way to let down the cost of your mortgage.