Finding garages, sheds, etc., converted into a small apartment or in-law suite is a somewhat common occurrence in Orlando.  For the buyer, the possibility of off-setting the mortgage payment with a tenant seems like a win/win, and many times it can be a win/win.

But what's the down side?

Some of the questions to ask your agent:

  • was the garage or shed conversion done with the proper permitting?
  • is the property zoned for multi-family dwelling?
  • does the rental apartment have separate meters for utilities? 

Why does all this matter?

If you have an apartment without permitting or zoning approval, it's not "legal" in the eyes of the city or county.  And once the property is sold, the burden of bringing the property "up to code" could be an issue requiring legal advice for the buyer.  

Since these units are typically not metered separately or zoned as multi-family, using the rental income to qualify for the mortgage will not likely happen nor will the income be included in the appraisal as a legitmate rental property.

Lots to discuss on this topic. If you have specific questions, don't hesitate to contact me by text or phone at 407-595-4841 or