You've been thinking of starting a home business for a few years now, and the time is finally right. However, you're
looking around and realizing your house lacks the space needed to bring your vision to life. Should you start your business now and upsize later or sell your house before starting a business? This might seem like a matter of convenience, but there's a practical reason to relocate before starting a home-based business: It's harder to qualify for a mortgage when you're self-employed. From the local experts at Coastal Island Properties, here's what you need to know about buying a home while starting a business.
Self-employment and home loans
Sole proprietorships, partnerships, and limited liability companies are the most common business legal structures. These business entities offer pass-through taxation and uncomplicated filing requirements. LLCs have the added benefit of protecting business owners from personal liability, making the additional steps to form an LLC well worth the effort — especially when you consider how easy it is in most states.
However, since owners of these business entities aren't paid a regular wage, banks are often wary to lend to them. As a result, you'll have to work harder to prove your creditworthiness as a self-employed homebuyer. This generally includes providing two years of tax returns demonstrating your business's income and financial stability.
For startups without a track record, that’s not possible. For that reason, it's wise to buy a home before quitting your day job. Once you're settled into a new home, you can start making a plan to transition to full-time business ownership.
The only exception is if you're recently unemployed and looking to self-employment as a path forward. In this case, you can qualify for a smaller mortgage based solely on a spouse's income or focus on building your business before buying a home.
What to look for in a house for home-based business
When buying a home where you can live and work, you want an office that's architecturally separate from the rest of the house. This creates privacy, professionalism, and a clear boundary between work and family time.
Homes with detached additions are the best candidates. This could be a fully-equipped accessory dwelling unit, outbuilding or workshop, converted garage, or room over the garage.
Attached additions are another excellent option. This can be a converted space like a basement, attic, or garage, a bump-out addition, or a sunroom. Homes with dual master suites are also easily adapted to business use, particularly if the converted suite has its own private entrance.
Additional considerations
Other considerations when buying a home for business use include:
- Location: Does your home business abide by neighborhood zoning ordinances or HOA covenants? Is it easy for clients, vendors, and employees to access?
- Connectivity: Most home businesses rely on the internet to run their business. Familiarize yourself with the service providers and speeds available in your location.
- Storage: Does your business require storage for materials or inventory? Consider how much storage you need and whether it requires climate-control.
- Family life: Work-life balance calls for more than a fully-equipped home office. Make sure the home you choose includes amenities that improve family life as well, like an updated kitchen, big backyard, and family-friendly neighborhood.
Finding a house that does it all can be tricky. When you have high expectations for your next home, contact Coastal Island Properties. Whether you're after a central location, a big lot, or your own waterfront sanctuary, agent Desiree Maurer can help you find what you're looking for in the Charleston tri-county real estate market. Search for your next home at Coastal Island Properties or call us today at 843-327-9010.
This FRESHLY PAINTED 3-story end unit townhome, with BRAND NEW CARPET, is ideally situated to Boeing, Joint Base Charleston, Bosch and the airport! As you enter the 1st floor, you will find a large bedroom in the rear that opens to a covered patio. The 2nd floor opens up to a spacious living/dining area, also with a covered porch overlooking a peaceful pond. The large eat-in kitchen has plenty of storage and counter space and a half bath is just around the corner.
Perfectly located in this desirable townhome community, this well maintained end unit, which backs to woods, has many upgrades including BRAND NEW HVAC, WATER HEATER, custom blinds and high quality laminate flooring in main living area! The privately situated side entrance leads you into a spacious, open floorplan with a large eat-in kitchen with plentiful cabinet storage and counter space to the front of the home. Your roomy open concept dining/family room with vaulted ceiling offers plenty of natural light and leads to a screened-in porch with brand new ceiling fan where you can enjoy your morning coffee and the natural habitat surrounding the home. The downstairs Owners Suite has vaulted ceilings and nicely sized walk-in closet. A half bath finishes off the first floor.
Welcome to this amazing Lowcountry Charleston-Single Style home, just a bike/golf cart's ride away from downtown Daniel Island, SC where you can enjoy all that Daniel Island has to offer, including its schools! Nestled against a wooded preserve, on a cul-de-sac, you will be instantly wowed the moment you walk up the stairs where you are greeted by gas lanterns and a bed swing overlooking the beautiful neighborhood.
Located on a quiet cul-de-sac in the desirable Hearthstone section of Crowfield Plantation, in Goose Creek, SC, you don't need to do anything to this well-maintained home other than move in! As you enter the home, you are greeted with high quality laminate flooring into the Family Room which has lovely built-in cabinets, vaulted ceiling and fireplace to enjoy on those chilly nights. Your nicely sized eat-in kitchen has stylish tiled floors, plenty of cabinet space and s/s appliances. Enjoy your morning coffee on your large screened porch which overlooks a spacious fenced backyard. The large Owners Suite is complete with vaulted ceiling, walk-in closet, lovely tiled shower and BRAND NEW carpeting! The other two nicely sized bedrooms also have brand new carpeting and a guest bathroom finishes off the interior of this wonderful home. The two-car garage also has pull down storage for those holiday decorations! 
This well maintained home, located in the Brookdale section of North Charleston, SC, has only had one owner and is in immaculate condition! As you enter the open floor plan, you will notice hardwood floors throughout the entryway and living room. The eat-in kitchen is ideal for entertaining, and includes a breakfast bar, extended height staggered upper cabinets, granite counters, sleek stainless appliances, and pendant lighting and leads out to a lovely covered porch that opens into a lovely fenced yard. The oversized Owners Suite, privately situated in the rear of the home, has a tray ceiling, a spacious bathroom with dual vanities, large soaking tub and separate shower and a large walk-in closet with bonus storage space off the closet. The two guest bedrooms are at the front of the house with a full bathroom in between. The fourth bedroom is located over the garage and is a great flex space that can be used as a bedroom, playroom, craft room, home office, gym or home theater.
Not too often do you see a five bedroom, three bath home with such a large yard at this price!! This beautiful, well kept home has plenty of space for all of your needs and just had brand new flooring installed as well as just painted! Along with the one-year old roof, this home is ready for you to move in! 
It is very hard to find a move-in ready home in Charleston, SC under $300,000 so you do not want to miss this opportunity! Welcome home to this lovely one-story, well maintained, freshly painted home in the Magnolia Range neighborhood of West Ashley. As you enter the foyer, you will be greeted with high quality laminate flooring throughout the whole home. Your spacious eat-in kitchen, which is off to the right and looks out into the Great Room from the breakfast bar, has plentiful cabinet and counter space. The custom white cabinets include pull out shelves and the breakfast area has a bay window that brings in the morning sun. Off the kitchen is the nicely sized laundry room that leads out to the two-car garage. On those cool winter nights, relax by the wood-burning fireplace is the spacious Great Room which has a vaulted ceiling, offering lots of natural light and leads out to a huge Sunroom via French Doors.
If you’re buying a home for the first time here in the Charleston, SC area, it can be a little difficult trying to figure out where to start. Here’s a handy to-do list to help you out, and be sure to call me if you have any questions!