In my quest for extreme early retirement I've thought about possibly moving from my 2 storey home with undeveloped basement (paid off) into a smaller home that has an inlaw suite for the same price. I could get around $10K a year from a set up like this. $10K a year at a 4% SWR translates to needing $250,000 less of a nest egg to retire. A significant amount for anyone - and this would let me retire about three years earlier. Just wondering if others have an inlaw suite that they rent out and if this allowed them to retire early? Or conversely is this used to simply offset your mortgage payments? Just wondering what your rationale is for this kind of setup. I know many people do this - I know one guy who rents his basement out and two bedrooms on the main floor to total strangers. In total he's bringing in $2400 a month in rent.