So you and your partner have just bought a fix-me-upper in an up-and-coming part of the city. You figure you can dig out and finish the basement, add a bathroom and small kitchen, presto, you’ll have a space to rent out for $800 or $1,000 a month. Your investment will bring you an influx of cash that can help you pay down your mortgage, buy other investment properties, travel more.
No brainer, right?
Well, maybe. As with many things that appear too good to be true, there are pros and cons and things to watch out for.