Harpreet’s perspective
Real questions. Real properties. Real numbers.
You find a house with a basement suite. Your first thought: ‘Great! Rental income!’ My first thought: ‘Tell me more about the suite.’
Understand What You Are Buying
Is it legal or otherwise appropriately authorized? What documentation is available? What's the layout? What is realistic market rent? How will the applicable lender treat rental income for qualification?
Different lenders and mortgage programs can have different requirements for rental income and the property itself. So please don't take the basement rent, multiply it by twelve and automatically add the entire amount to your qualifying income. Mortgage math likes rules.
Build the Strategy Around the Facts
But a properly structured property with rental income can potentially make an interesting home or investment strategy. Maybe you live upstairs and rent downstairs. Maybe you're buying it strictly as an investment. Maybe the suite helps support cash flow while giving you flexibility later.
Tell Me More
I like these properties. I just want to understand exactly what we're buying before building the mortgage around it.