Is it worth it to convert Garage into a rental unit

[Randall Re II]

I have a property in Port Charlotte Florida. The garage is seperate from the house and 720 square feet. What's the best way to figure out if its worth it to convert it or not? I see the market rental going through the roof to $2200 a month to up to $3500 a month and currently have a 5 bedroom, 2 bath, 1600 square feet plus the garage on a huge lot and have to bring in more money because of insurance and taxes increases. 

[Matthew Morrow]

It surely could be. While im not familiar with the FL market- we've looked into this in PA and watch out for a few things that may play into the equation

-Zoning restrictions

-Required code upgrades with building changes- IE Sprinklers needed to be installed

-Cost of project vs true value added 

[Nathan Gesner]

Quote from @Randall Re II:

5bed/2bath and only 1,600 sqft? That sounds tight. And it still rents for $3,500?

It depends. You need to do the math and compare the cost vs. value.

You may be able to increase income by converting it to a game room, man cave, hobby shop, or some other use that is worth charging higher rates. Or maybe it doesn't increase your rent rate, but it attracts more attention and reduces vacancy time.

[Eliott Elias]

Figure out what it costs to convert it. 

[Carlos Ptriawan]

Quote from @Randall Re II:

I have a property in Port Charlotte Florida. The garage is seperate from the house and 720 square feet. What's the best way to figure out if its worth it to convert it or not? I see the market rental going through the roof to $2200 a month to up to $3500 a month and currently have a 5 bedroom, 2 bath, 1600 square feet plus the garage on a huge lot and have to bring in more money because of insurance and taxes increases. 

 You contact the appraiser and ask their opinion. 

The problem of converting garage is if it's not connected to main house and doesn't have the same circumstances as the main house, the appraiser would not count that conversion as living space, so when you sell later on, you may lose money as you built something that has lower value, but if that garage is attached and have the same condition as main house (heat,etc), then it may work out.

[John Morgan]

@Randall Re II

I’ve done this. You’ll be able to get an extra grand a month in rent off it. I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago. I ended up getting an extra $200/month in rent with the conversion. So I’m finally breaking even after spending that 8k to convert it 4 years ago. Lol. But in the long run it’ll pay off. I have a couple others with detached garages. One I rent out for $800/month to a separate tenant and the other detached garage at a small rental increases rent at that house by about $300/month. Not great, but not bad. But I’d rather have 4 bedrooms vs 3 bedrooms. And my tenants don’t seem to care if they’re living in a converted garage. And I’ve got 5 with converted garages.

[Randall Re II]

Thank you everyone for your advice. This investment will be for the long term as I have no plans to sell it. 

[Randall Re II]

Quote from @John Morgan:

@Randall Re II

I’ve done this. You’ll be able to get an extra grand a month in rent off it. I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago. I ended up getting an extra $200/month in rent with the conversion. So I’m finally breaking even after spending that 8k to convert it 4 years ago. Lol. But in the long run it’ll pay off. I have a couple others with detached garages. One I rent out for $800/month to a separate tenant and the other detached garage at a small rental increases rent at that house by about $300/month. Not great, but not bad. But I’d rather have 4 bedrooms vs 3 bedrooms. And my tenants don’t seem to care if they’re living in a converted garage. And I’ve got 5 with converted garages.

 Sent you a DM to have you elaborate a little more as I got approval from the zoning department. 

[Melissa Tommarello]

I am in the home stretch of converting the detached garage (600 sq ft) on my property to a 1/1 unit. I am living in the main part of until and based on my estimates, I should be able to cover my mortgage once it's up and running.

I have put a lot of blood, sweat and tears into the project and wouldn't say it was easy. As this was my first investment property and had limited capital, it definitely was more of a challenge. Due to that, I did a lot myself from submitted the plans to my local building department to putting up drywall. I believe it will definitely be worth all the hard work in the end and plan to get my property reappraised. I do have the say I would not have been able to do this if I contracted all the work out though.

[Randall Re II]

Quote from @John Morgan:

@Randall Re II

I’ve done this. You’ll be able to get an extra grand a month in rent off it. I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago. I ended up getting an extra $200/month in rent with the conversion. So I’m finally breaking even after spending that 8k to convert it 4 years ago. Lol. But in the long run it’ll pay off. I have a couple others with detached garages. One I rent out for $800/month to a separate tenant and the other detached garage at a small rental increases rent at that house by about $300/month. Not great, but not bad. But I’d rather have 4 bedrooms vs 3 bedrooms. And my tenants don’t seem to care if they’re living in a converted garage. And I’ve got 5 with converted garages.

 John, would you be against sharing the scope of work you had done? It's seperated from the house so I'll have to add AC, plumbing, some electrical, and I'm looking for a minimilist price tag/ look to it as its small and doubt tons of kitchen cabinets and such will matter. 

[Randall Re II]

Quote from @Melissa Tommarello:

I am in the home stretch of converting the detached garage (600 sq ft) on my property to a 1/1 unit. I am living in the main part of until and based on my estimates, I should be able to cover my mortgage once it's up and running.

I have put a lot of blood, sweat and tears into the project and wouldn't say it was easy. As this was my first investment property and had limited capital, it definitely was more of a challenge. Due to that, I did a lot myself from submitted the plans to my local building department to putting up drywall. I believe it will definitely be worth all the hard work in the end and plan to get my property reappraised. I do have the say I would not have been able to do this if I contracted all the work out though.

 I'm overseas so this will almost all need to be contracted out. I'm going to convert it to a 2/1, and my PM says he can rent it all day for $1500 which I believe as well from my research. 

[John Morgan]

Quote from @Randall Re II:

Quote from @John Morgan:

@Randall Re II

I’ve done this. You’ll be able to get an extra grand a month in rent off it. I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago. I ended up getting an extra $200/month in rent with the conversion. So I’m finally breaking even after spending that 8k to convert it 4 years ago. Lol. But in the long run it’ll pay off. I have a couple others with detached garages. One I rent out for $800/month to a separate tenant and the other detached garage at a small rental increases rent at that house by about $300/month. Not great, but not bad. But I’d rather have 4 bedrooms vs 3 bedrooms. And my tenants don’t seem to care if they’re living in a converted garage. And I’ve got 5 with converted garages.

 John, would you be against sharing the scope of work you had done? It's seperated from the house so I'll have to add AC, plumbing, some electrical, and I'm looking for a minimilist price tag/ look to it as its small and doubt tons of kitchen cabinets and such will matter. 

I had a small full bathroom (stand up shower) and a couple walls added to make a laundry room and walk in closet. The bedroom is small,  but big enough. They had to connect the sewer line from the outside of the house, under the driveway to join the main sewer line in the front yard. Minimal electric work and a window. Nothing fancy. Cost 8k which was labor and materials. Took them a week to do. You’ll need some kind of heating and cooling. I’ve got a detached garage at another rental house that has window units and space heaters. But you can add a mini split maybe. 

[Randall Re II]

Quote from @John Morgan:

Quote from @Randall Re II:

Quote from @John Morgan:

@Randall Re II

I’ve done this. You’ll be able to get an extra grand a month in rent off it. I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago. I ended up getting an extra $200/month in rent with the conversion. So I’m finally breaking even after spending that 8k to convert it 4 years ago. Lol. But in the long run it’ll pay off. I have a couple others with detached garages. One I rent out for $800/month to a separate tenant and the other detached garage at a small rental increases rent at that house by about $300/month. Not great, but not bad. But I’d rather have 4 bedrooms vs 3 bedrooms. And my tenants don’t seem to care if they’re living in a converted garage. And I’ve got 5 with converted garages.

 John, would you be against sharing the scope of work you had done? It's seperated from the house so I'll have to add AC, plumbing, some electrical, and I'm looking for a minimilist price tag/ look to it as its small and doubt tons of kitchen cabinets and such will matter. 

I had a small full bathroom (stand up shower) and a couple walls added to make a laundry room and walk in closet. The bedroom is small,  but big enough. They had to connect the sewer line from the outside of the house, under the driveway to join the main sewer line in the front yard. Minimal electric work and a window. Nothing fancy. Cost 8k which was labor and materials. Took them a week to do. You’ll need some kind of heating and cooling. I’ve got a detached garage at another rental house that has window units and space heaters. But you can add a mini split maybe. 

Thanks John. I'm hoping to get the price down as I'm told the AC and Sewer lines will be very expensive but who knows. I'm new at this all and still figuring this out. Working on getting a HELOC to do this, also so I can move some walls in my primary as the house isn't to functional. 

[Ryan Thomson]

Are you after an ROI or a cashflow? Figure that out and then run the numbers to see if its worth it to you.

Get some contractors to give you bids and timelines. Then double their timelines (I say this tongue in cheek). 

Other things to consider:

1. Local Permitting: you'll want to check with your building department to see if a conversion like this is allowed in the current zoning of your home. You don't want to spend all the money to convert a garage just to have it be illegal.
2. Structural integrity: One of the most important considerations is the structural integrity of the garage. If the garage is not built to support the weight of additional floors or is not adequately reinforced, it may not be suitable for conversion.
3. Insulation: Another important consideration is insulation. A garage that is not properly insulated may be uncomfortable to live in and may not meet local building codes for habitation.
4. Heating and cooling: In order to make the garage comfortable to live in, you will need to install heating and cooling systems. This may involve adding ductwork, installing a separate HVAC unit, or using portable heating and cooling units.
5. Electrical: Another important consideration is the electrical and plumbing systems. You will need to install outlets, switches, and lighting fixtures as needed,
6. Plumbing: You will almost certainly need to connect all drains to the sewer and bring in water lines.
7. Windows and doors: To provide natural light and ventilation, you will need to add windows and doors to the garage. This may involve cutting through the exterior walls and installing new openings.
8. Shower: To add a shower, you will need to install a drain in the floor of the garage and run plumbing lines to the location of the shower. You will also need to install a shower pan, a shower enclosure, and a showerhead.
9. Kitchenette: To add a kitchenette, you will need to install plumbing lines to the location of the sink and any appliances you plan to include, such as a mini-fridge or microwave. You will also need to install cabinetry and countertops, and you may want to consider adding a small stove or oven if you plan to do more extensive cooking in the space.

1. Finishes: Finally, you will need to finish the interior of the garage to make it suitable for habitation. This may involve installing drywall, flooring, and ceiling materials, as well as painting and decorating to your taste.

[Kevin Bartlett]

How's it going with the project? 

[Ronnie Hutchinson]

@Randall Re II Did you end up doing this? I'm curious as I am looking into doing this too in Central FL.

[Randall Re II]

Quote from @Ronnie Hutchinson:

@Randall Re II Did you end up doing this? I'm curious as I am looking into doing this too in Central FL.

 I haven't yet as companies are 4 or 5 months out booked due to the Hurricane. If your not there, I'd do a GC. Making sure its possible is first thing as can they get the plumbing to the property easily? Same for electrical and hvac. 

[Whit Ewen]

Quote from @John Morgan:

... I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago.

Curious how you kept to that budget. Did you do the work yourself? I assume no roof or flooring changes and it was already taped/floated. Any insights into creative conversion could be helpful for others considering this. Thanks for sharing

[Carlos Ptriawan]

Quote from @Whit Ewen:

Quote from @John Morgan:

... I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago.

Curious how you kept to that budget. Did you do the work yourself? I assume no roof or flooring changes and it was already taped/floated. Any insights into creative conversion could be helpful for others considering this. Thanks for sharing

 I think 8k is possible considering only adding the minimum bathroom and all the pipes already in place. 

But yes 8k is still fantastic.

[John Morgan]

Quote from @Whit Ewen:

Quote from @John Morgan:

... I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago.

Curious how you kept to that budget. Did you do the work yourself? I assume no roof or flooring changes and it was already taped/floated. Any insights into creative conversion could be helpful for others considering this. Thanks for sharing

No, I hire out all my work. It wasn’t anything fancy. Just a small bathroom with standup shower and mater closet. And new plumbing and some light electrical work. They did it in just a week. 

[Carlos Ptriawan]

Quote from @John Morgan:

Quote from @Whit Ewen:

Quote from @John Morgan:

... I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago.

Curious how you kept to that budget. Did you do the work yourself? I assume no roof or flooring changes and it was already taped/floated. Any insights into creative conversion could be helpful for others considering this. Thanks for sharing

No, I hire out all my work. It wasn’t anything fancy. Just a small bathroom with standup shower and mater closet. And new plumbing and some light electrical work. They did it in just a week. 

 yea if the water line is already there it's technically an easy job. Someday I would post my conversion as well. One creative thing I do is I use remote motion sensor switch so the electrical work is quite minimum. You have good price indeed.

[Randall Re II]

Quote from @Carlos Ptriawan:

Quote from @John Morgan:

Quote from @Whit Ewen:

Quote from @John Morgan:

... I converted a one car garage into a bedroom with a full bathroom for 8k about 4 years ago.

Curious how you kept to that budget. Did you do the work yourself? I assume no roof or flooring changes and it was already taped/floated. Any insights into creative conversion could be helpful for others considering this. Thanks for sharing

No, I hire out all my work. It wasn’t anything fancy. Just a small bathroom with standup shower and mater closet. And new plumbing and some light electrical work. They did it in just a week. 

 yea if the water line is already there it's technically an easy job. Someday I would post my conversion as well. One creative thing I do is I use remote motion sensor switch so the electrical work is quite minimum. You have good price indeed.

 What is the remote motion sensor switch for on the electrical, like can you elaborate a little?