The Real Estate Browser Volume 8, Issue 11

10 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 8 Number 11 www.LynchburgRealEstateBrowser.com The Rental Potential by Dan Vollmer, Associate Broker, ReMax 1st Olympic An interesting trend that’s developed over the past several years is that of home owners - particularly first time home buyers - using their home for both personal use AND earning rental income. Of course, this trend is not spe- cific to Lynchburg. But I have to say, this is a great area to own a rental property or two, or at least turn your basement into an apartment for rent. Housing is affordable and there is a vast sea of potential tenants in the area’s college student population. For home buyers, there are a couple upsides. First, the added income gener- ated from the rental of some portion of the home allows the buyers to consider higher priced properties. For those on a limited budget, this could mean the difference between finding a home that suits their needs (and maybe checks a few boxes on the ‘Wants List’) versus settling for a home they can afford, but doesn’t put them in proximity to the things that matter. Or worse - keeping them from being able to afford a home at all. The other upside is that, if the buyers can qualify easily for a home that meets their needs, the additional income allows them to pay down their mortgage much faster. It may even give them to option to choose a 15-year loan over a 30-year mortgage. At the very least, it gives the buyer a healthy cushion to help cover the cost of any unforeseen expenses. And in the best case scneario, rental income can fund renovations or overdue upgrades to the home itself. For those who aren’t necessarily look- ing for a full time occupant under a year- long lease, some buyers are now turning areas of their home into short-term rentals through sites like AirBnB. For home own- ers who excel in hospitality, this can be a wonderful way to generate passive income, without being committed to long term tenants. There is also a greater degree of control over your property, as you only offer it for rent when it suits your needs and schedule. So even if you’re not looking to be a full-scale real estate investor, there are a number of ways to turn your personal home into an income generator - all on terms that are favorable to you and can make that next mortgage payment a little easier to swallow! Questions, comments, or have an idea for a future article? Email me at dan@ DanVollmer.com.

The Real Estate Browser Volume 8, Issue 11 | Page 10