Does it make financial sense to buy a larger house with in-law quarters to rent it out?

Hello reddit,

We saw a bunch of open houses in Thousand Oaks, CA neighborhoods on Sunday. This one particular property stood out, as it was 3500 sq.ft or so and had a completely isolated guest quarters/in-law suite downstairs with separate entrance.

Here's the link if anyone is interested:

This got me thinking, we could actually afford a slightly more expensive house like this if we're fine with renting out the guest quarters. It has a separate entrance, third garage space, access to backyard, and most importantly well isolated from the rest of the house. Any thoughts on whether this makes financial sense? We could probably rent it out for something like $1500 a month. This would significantly bring down the mortgage payment(~$4500). Even if it was rented only for say 70% of the time, it still makes sense to me. Any other gotchas I'm not thinking about?

More real estate tips at Program Realty Wix site


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