Hey everyone, was just curious if anyone is familiar with the Ringgold GA area right outside Chattanooga TN. I currently live there and was wondering about using the house hacking method to convert my 800 sq foot basement into another large bedroom/ in law suite. My question is would it add more value for my area as a finished basement like it currently is or would it be better to add a kitchen and full bathroom down there? The house is currently a 3/2 with 2800 sq. feet including the finished basement. It does currently have hook ups for a kitchen, and I'm assuming the cost to add the bathroom and some walls and equipment would likely run me about 10-15k. Any suggestions would be welcomed, let me know if I'm missing any key information. I am going to refer to the book on estimating rehab costs when my buddy gives me my book back.
Not to be vague but it really depends. Basements at best appraise for 50% of the value of the main level(s). More often than not that number is 25%-40%. You get it higher by making the basement look as close to the main levels as possible. In other words, if it looks like a typical finished basement out here then expect the lower number. I've actually been given no credit on an appraisal for a finished basement. If you plan on having a bedroom in a basement then make sure it meets egress as well.
For estimating purposes you should plan on the lower appraisal numbers in your analysis and when you have the cost to do the project make a decision based on that. I think adding the kitchen and bath would add some value but don't know it will be dollar to dollar so probably not worth it. Also, your construction numbers will most likely be much higher than you project here unless you are doing the work yourself. If you have a slab you'll need to sawcut it to get a 4" waste line for the toilet installed and tie into existing waste line system. You'll also want work permitted as well. And if you don't have 10' high ceilings now then it's probably not a great idea because the mechanicals will make your finished height much lower and you want to avoid a drop ceiling for max value as well.
Hi Michael, my own opinion is that adding a kitchen and bath is required if you are going to legit "house hack". I guess how you define house hack would give clarity as to what direction you need to go. I live in Dalton and run an agency called Selling North Georgia, part of the Keller Williams Greater Dalton Office. Let's get together sometime, I'm happy to come over and take a look so I can give some more detailed advice or thoughts.