The upstairs apartment is the game changer. That turns the property into an income stream as well as a small business. You can depreciate the building and all repairs are tax deductible. Most of your monthly expenses such as utilities, property taxes, maintenance, etc. will also be tax deductible.
Depending on how things turn out, your hobby garage could actually build wealth for you since that building should appreciate over time.
That's exactly the plan, Andy.
I have another rental property on the other side of town. Owned it since 1988 and have done well with it. That one has a similar layout but is smaller and is in a residential neighborhood. That one has three heated single bays underneath a house and a large two bay at the rear of the property. I give one of the heated bays to the tenant and either use or rent the others. The depreciation and expenses deducted from the income every year make them a nice deal. This new one is zoned commercial, so there's a little more freedom as to what I can do there. I need to do some updating in the apartment first, then I'll get it rented and let it start paying for itself.
