Options For Fixer Upper Home
Here's the scenario: Myself and another person recently bought a house together. The new house is a 4bed/3bath and my partner in this transaction will live in it. We want to rent out the other bedrooms. I will continue to live in my old house (2bed/1bath) which I own outright. The old house is a 100 year old row house and although I've been able to make some repairs (new roof, upgraded bathroom) it still needs more work, which right now I don't have the money for. The lender considers the new house to be my primary residence while the old house is officially an investment property. I've become aware there are many options I could pursue for the old house. These include:
1. flat out sell it and move into the new house.
2. stay in the house and rent out the other bedroom.
3. rent out the entire old house and move into the new house.
4. do a lease option deal and move into the new house.
5. try to transform it into an office, like some of the other row houses have been transformed in my area.
6. seek out grants and/or low interest loans to continue with repairs.
7. try to affiliate with the city agency that runs a homeless shelter around the corner from the old house.
The old house is in a great location near downtown with easy access to the local university, the public library, main post office and city parks. It is in an urban renewal area with many new office and apartment buildings. The value of the land has increased in the 8 years I've owned it. I owe $74,000 on the house whereas a recent appraisal came in at $92,000, doubtless so high because of the value of the land. My feeling is that if I play my cards right I could turn the old house into something quite special. Given all these circumstances, I'm seeking input as to the best thing to do with the old house. What do we think?
It sounds like it is in a prime location to rent out. What would make it more valuable to rent out ...as a residence or convert and rent out as an office? Maybe consult with a local re agent to help you make the decision.