You should really convert the basement to a seperate residence, so you can independently live there, while also providing the same conveniences to the renter upstairs.
Rent to a family.
Being a landlord does suck. I have worked closely with a real estate investor managing 30 residential rental properties.
I would say the two biggest issues are the quality of tenants and the quality of homes.
Central A/Cs die. Whole homes need to be repiped. Roof leaks.
Tenants do not pay or will have 5 people in a 2 bedroom home. Eviction is costly and time-consuming.
The only real estate I would consider as an investment right now is something commercial/industrial, like a group of warehouses or office suites, something with multiple renters.
One pretty much has to assume that your property is going to need a repainting/recarpeting/other repairs when the tenants move out and price accordingly. Most renters (not all mind you) will do all sorts of bad things to your property. Taking that into account is important when renting out.
Unless I moved out of my home, I'd actually be more likely to just rent out rooms. I think there's far less risk and legal complication if you're essentially renting out a room to a "roommate" versus giving over your entire home to another person or family.
Rent to a family.
Being a landlord does suck. I have worked closely with a real estate investor managing 30 residential rental properties.
I would say the two biggest issues are the quality of tenants and the quality of homes.
Central A/Cs die. Whole homes need to be repiped. Roof leaks.
Tenants do not pay or will have 5 people in a 2 bedroom home. Eviction is costly and time-consuming.
The only real estate I would consider as an investment right now is something commercial/industrial, like a group of warehouses or office suites, something with multiple renters.