Quote:
Originally Posted by GLOW
does having a rental suite as a mortgage helper affect/change the 15x rule of thumb, or not so much since it's extra income, not rent?
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be aware that a rule of thumb is just that, it is not a primary valuation metric, but a quick 'this sounds a tad pricey' or 'this seems reasonable' - there are many factors...
now, onto your question, you'd look at it like this:
what is the value of your part of the house (annual rent that you could get from it x15) plus the value of the rental suite (annual rent x15).
Of course you'd pay more for a place with a rental suite, as it offsets your cost - having said that, would you give it a full 15x metric? I personally wouldn't as i don't want someone living 'in' my house, but i'm a bit odd like that.
the simplest answer is take all cash flows associated with the house (incoming rents, that is) x15 = value of total house.