A little about my financial background. I am 23 years old. I have no car payments, no student loans. I purchased my home (3 bedroom, 2 bathroom) for 190k, at an interest rate of 5.35% for a 30 year loan. My monthly mortgage is around $1,200. I am renting my two other spare rooms to friends, so in the end I only pay $420 out of my own pocket for mortgage. We split the internet, water/gas, and electricity three ways. Basically, the only expenses I have are $420 rent that goes to my mortgage, $110 per month car insurance, home insurance, credit cards (that I pay off every month), utilities, and food.
My house comes with a storage shed in the backyard. Currently it is being used as a storage, but being that my roommates and I are young, we don't have much stuff to store. So my parents and I have been discussing about turning the storage into a little studio with full bathroom (toilet, sink, shower), with the kitchen and bedroom/living room sharing one common area. We found a guy who will do every, insulation, flooring, full bathroom, ventilation, drywall, add two windows to the structure, and kitchen for $4,000 total. The only thing that will not be included is the AC unit, stove, and refrigerator.
My question is should I rent out the studio to a friend of mine for $500-600 per month and have our utilities split 4 ways? Or should I AirBnb the studio? I have no experience with AirBnb.
Submitted June 26, 2017 at 03:43AM by TheMightyPina http://ift.tt/2tKndu0 personalfinance
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