Localfund.com - All about Fund and Investment
*Home>>>Value Investment

What do you call when a homeowner rents our her spare rooms in her house?


Homeowner has rental income and was asked how much is her current investment value, yet not to include value of the house where she lives in now.

Were they looking for the investment value of the home, meaning how much equity she has in it, rather than the market value of the home itself?

If she rents out rooms in a house, it would be rental income. Note to the other poster, sublets are when you paying rent for a place and don't live there and charge someone else rent to occupy.

sub-let or roommate.

bed and breakfast.

ho house

If she's not to include the value of her house, then she should just provide the details of her other investments. Usually, though, current assets includes the house.

Boarding

boarding house

SUBLETTING!

Landlord. Even if they still live in the residence they are considered a landlord unless they are renting the space then it is a sublet.

Landlord? Proprietor?

room for rent

I am confused. Does this person live in a house other than the one she is renting? If she rents another home she is a landlord and is receiving rental income. If she rents rooms out in her own home that she lives in then I think she would be a boarder but I am not certain to the legal title. Either case I think it would be considered rental income.

it sounds as tho the owner is applying for a loan and has to fill out a financial statement for the lender.
Her investment value for the rental is the furniture e.g. personal property put in the rooms to make the rooms enticing to the tenants to rent.

You can call anything you want! Hogs, chickens, anything! You can even call ghostbusters if you want! Calling has nothing to do with homeowners who rent out their spare rooms.
Oh, oh! you mean 'what DO you call a homeowner who.......?' Easy, a landlady!

She is a land lord/property manager. The net income from rents (gross rent less expenses) should be 'discounted' to find the present value of the 'investment.' The discount rate should be the interest rate on the home loan (or a rreasonable estimate of it). The math is as follows (assumes a perpetuity):

Investment value = (annual rent) / (interest rate)

If there is a lease or a rental agreement, on paper, then she would be a Landlady. If not, she is a roommate.
I don't really understand your secondary question! It seems that someone wants to know her investment value, which would be the value of the house, irregardless of whether it was a rental property or not!
Any money she receives from a rental is NOT and investment, it is income!

Tags
  Venture Capitalist   Venture Capital   VC Fund   Vanguard Fund   Value Investment   Trust Investment   Stock Investment   startup Investments
Related information
  • WHAT part of florida has the best real-estate appreciation?

    I use ...

  • Math Lovers here is one for you?

    200(1+.10/2)^2 or 200(1.05)^2 or 200 * ((1.05)(1.05)) or 200 * 1.1025 or $220.50 The elementary way to change this equation is P ((1+r/2)(1+r/2)) Using the FOIL method P((1 + r/2+r/2+(r...

  • If an excess distribution is made from a Roth IRA-lower than the contribution, can a capital loss be recorded?

    Not unless you closed out *all* of your Roths. See publication 590 for a worthless itemized deduction that year. (The loss wouldn't go on schedule D, but schedule A in the 2% section.)

    ...
  • How to use FV function in Excel for the following problem?

    Here's the formula: =-FV(0.07,10,250,600) You can copy and paste it into excel if you like. Good luck!

    ...
  • I am new at being a landlord so i have a question.?

    I am a lanlord also. Many of my tenants are nasty as well. It is really hard to legally kick someone out of your house. I don't think that would be basis to kick them out, although you woul...

  • How does a 2 for 1 split work?

    stock split means if you have 50 shares would become 100 shares i..e 2 for 1....total value would be almost same.. But before split price will go up sometimes 1.5 times or more.. surprisingly....

  • You invest in a project that has the following payoff schedule:?

    Multiply 40 by 0.15, 50 by 0.20 etc. Record the answer for each. Add up your answers. That is your expected payoff.

    ...
  • Can I invest from the U.S. in Euro`s without the dollar being involved except the transfer?

    If you invest in a company in europe, it's stock will trade in Europe, and be valued in euros, But if you are just buying an equivalent stock on a US exchange, it would be listed in US dollars...

  •  

    Categories--Copyright/IP Policy--Contact Webmaster