Does Your Home Have Income Property Potential?

income propertyAs home values continue to decline and many Americans continue to battle unemployment, extracting additional income out of one's home has become one solid way to bridge the economic gap. Dawn Kawamoto of our sister site, DailyFinance, outlines some smart ways to make your house make money for you.

The U.S. economy is slowly staggering out of the Great Recession and employment figures show signs of promise, but after nearly three years of financial drought, many Americans still feel their budgets are under pressure. Faced with depleted stock portfolios and shrunken savings accounts, homeowners looking to pump up their finances may want to turn to their greatest assets -- their homes.

But when we talk about turn your castle into a bank, we're not talking about using it as a home-equity loan cash machine as so many did during the bubble years. We're talking about ways to actually bring in extra income from your property.

The ideas we'll present, while varied, all carry a common theme -- renting out some portion of the property. The degree to which that might intrude on a homeowner's lifestyle varies, too: Renting out your backyard to campers or gardeners, or renting a driveway to frustrated commuters who can never find parking will have more of an impact on your daily life than leasing a 500-square-foot parcel for a cellular tower.

Read more at DailyFinance.

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It's not that hard to rent a small space out, I did and it was great. What woould greatly help is:
1 You can find potential renters from any military bases nearby, college admin offices, churches, airports and construction companies. These and a whole lot more need small for basically a place to sleep while way from home. Usually because they've obtained you place through their employer, school etc. they most likely will be good tenents because if they aren't, you do have source you can complain to.....believe me, it works!

2 I had a wall built to seperate me from them (they used my back door), a very compact bathroom, installed a small fridge and a microwave oven, single bed and an used armoire and TV! In all, the total cost was well under $1000 (and got $575 a month!!!!!!!) good luck!

April 19 2011 at 10:52 PM Report abuse rate up rate down Reply

To thatslin2you - How sweet it is to stop and smell the roses. Smiles

April 19 2011 at 4:26 PM Report abuse rate up rate down Reply

Become your own car service if you need to have strangers park in front of your home, at least you can give them a cell phone number, and pick them up at their door! Of course, what is to say in this corrupt world, you're not going to be robbed or killed as a car service driver/owner? Perhaps a chauffer for the wealthier people, or celebrities wouldn't be a bad way to supplement your income. Again, you'll have to pay the IRS!

April 19 2011 at 3:45 PM Report abuse +1 rate up rate down Reply

Sure, an income, something else and spiteful neighbor could call the IRS or other government agency to investigate and you will have to pay income tax on receiving an income!

April 19 2011 at 3:41 PM Report abuse +1 rate up rate down Reply

I've rented out bedrooms in my homes for the last 14 years. That's part of the time honored tradition of the Wild West becoming civilized, When small towns popped up there was a saloon, boarding house, jail and a bank. I looked around me and 14 years ago after I divorced, I lived in my motorhome for 7 years. I finally bought a repo 3 bdrm/2 bath home for me and my dog. I looked around it and thought (after living in my motorhome where space was a premium) I thought - what am I going to do with all this space? Well that was easilly solved. I'll rent out the rooms. I took the master and rented the other two that shared a bath and I started going until I had 9 homes. If real estate hadn't collapsed along with the rest of this economy, I'd have been a millionaire many times over with the equity that I acquired. Everything I have done is legal, documented on my taxes which then gives me verifiable income to purchase my other needs in life. I'm always in charge, I choose who lives with me and have simple and practical rules. Pay your rent on time - Don't destroy my property - Get along with the other people living here - And if you cause me any problem - You'r outta here. This has allowed me to live a comfortable life instead of barely existing. I make enough to hire all my maintenance, cleaning and building so that I have time to do what I want. I graduated at age 17 from high school, got married, had 3 kids and after 32 years I am finally on my own. Doing my own thing, exploring who I was instead of wearing the many hats that I had to wear while being married and living that life. I found out that I can do better financially by myself than with a husband that made 3 times more than I ever made. I don't have to get permission or discuss my ideas - I'm free to fall or fly on my own. Fortunately, I have a ton of common sense and no need to keep up with the Jones's. I have a beautiful 5 bdrm/2 bath home that I would only rattle around in if I lived alone. So my income rises $2300 a month and added to my social security, I feel comfortable. NO - I'M NOT RICH. However, I can go out to eat whenever I want, and I have time to play with my dogs without the stress of NO MONEY. Currently I'm adding another bath to alleviate the stress on one bathroom for the 4 tenants..... My life is constantly changing but always in a upward way. The extra money has allowed me to pretty much do what I want. The funny thing is that I had an offer from a guy who wanted to rent my driveway. Hahahaha. But believe me, if I needed the money, I'd do it. All people need to think outside the box and remember that we don't need as much of everything as we think we do. I do a service in a market that needs bedrooms and get paid for it. How cool is that? The extra money allows me to help those less fortunate and donate to charities. I'm frugal but don't really need anything that I can't provide for myself. People need to get back to basics. Smiles

April 19 2011 at 2:29 PM Report abuse +1 rate up rate down Reply
1 reply to kaasei's comment

You said it all when you said "people need to get back to basics". I won't go into the details, but my husband and I sold an expensive and expensive-to-keep up house and paid cash for a house less than half the size and way out in the country. We've since retired, and as I type this he's cutting grass on our .79 acre plot. He's worked most of the day in his herb and produce beds, "piddling" I call it. But it's his hobby and he LOVES it. I love spending a lot of time with my pets and "working" for the local Ruritan Club. We live on less than a third the money we did when we worked, have what I think is a good amount in investments and savings accounts, and we don't do without a thing. We like to take a decent trip about every 3 or 4 years, like to go to Europe maybe every 5 years, and we eat out only occasionally. We're happier than we ever were living in that expensive house in town and I wouldn't go back there kicking and screaming!

April 19 2011 at 2:59 PM Report abuse +1 rate up rate down Reply

I don't know where you live, but that's how much it costs for my train station. It's funny, because there are about 4 apartment buildings near my train station and since I am currently 3 months into a 3 year wait for a permanent parking space at my train station, I find myself saying, "Mannnn, I wish I still knew someone who lived in one of these apartment buildings, I could probably park my car in their garage or even offer them a few bucks!" By the way, there would be no robbing their 20-story apartment building, because the door from their multi-level parking garage to gain acces into their apartment building is locked, besides you also have to pass the front desk/security to enter the building from the garage anyway. So, until 2 years and 9 months goes by, I can either walk about a mile to the train or get raped by the taxi companies and spend about $16 dollars a day for a roundtrip taxi ride to the train... or just drive to lot and hope I don't get ticketed for not having a parking pass for the train!

April 19 2011 at 11:58 AM Report abuse rate up rate down Reply
Nancy Lasocki

Yes, let's invite strangers on our property & get robbed or killed. Ok gotta go, I have a couple of semi's beeping to pull in the drive........Whew hoo!!!!!!! I'm gonna be rich!

April 19 2011 at 10:54 AM Report abuse -1 rate up rate down Reply

Just lower the gas prices and give the stolen houses back.

April 19 2011 at 9:29 AM Report abuse +1 rate up rate down Reply

That's kind of a dumb idea, rent your driveway out? then what, you go find a parking lot? Rent your backyard to some camper's? Next thing you know their campfire will be burning up the neighborhood. And then rent your backyard to a gardener? Who is going to end up taking care of it, and who might be paying the water bill? For get it , on second thought i don't need the money that bad.

April 19 2011 at 8:53 AM Report abuse -1 rate up rate down Reply
2 replies to gmini10's comment

I think what they mean is to rent your driveway to commuters that are looking for a place to leave a car(s) so they can car pool. The article assumes that if you are driving to work youself, then your driveway will be empty and you can rent it out for the day when you are not home... or if you live near a train station, most train stations have limited parking and there is sometimes a 3 year waiting list to get into the parking lot for a commuter. Finally, when you are lucky enough to get a permanent space at the train station, the yearly parking fee is $1,200 a year. So if you near a train station and you are at work the same amount of time as the person that leaves their car in your driveway, but you can make an extra $100/month cash, tax free for renting out your space, you wouldn't be interested?

April 19 2011 at 9:16 AM Report abuse +1 rate up rate down Reply
1 reply to dustpanshane's comment

Dustpan you are too optimistic.

April 19 2011 at 9:36 AM Report abuse -2 rate up rate down

Well said.

April 19 2011 at 9:35 AM Report abuse -2 rate up rate down Reply