I own a house with a garage apartments, house is rented for $900, it currently has 2 efficiency apartments renting @ $500 month, the first level is a 600sq ft. 2 car garage w/ a cellar & 8’ ceiling height, currently vacant, it was renting for $100 to a previous tenant...
The entire building needs windows, siding & a roof
Here is my question; do you recommend spending an additional 25-30k to build out the garage into a 1 bedroom apt? It would rent for $650-$700. Now would be the best time to do it, Install the windows & doors prior to bricking & siding the exterior. I’m not sure if it would increase the value of the property, only the income...
Option #2 would be take the 30K w/ leverage and invest it into another property, could possibly yield a higher return.
FYI Talked to the city, it will be no issue for zoning, I can have up to 4 rentals on the property..
I'd definitely recommend to invest the $30k in other properties where you can leverage it to buy more units. I'd think you can get a duplex or other multi-unit property with $30k down.
I would agree with David, Invest the 30k into another multifamily property. One that is producing cash flow right away which would allow you to slowly fix up your current property. Then with the cash flow from the two existing properties you can expand!
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