6 unit to 10 unit by garage converson
I recently bought a 6 unit that is fully rennovated, excellent shape, new roof, heating is in good shape, rents are great. This is great but gives me little room to add value to the property. These units come with their own 1 bay garage. I have a 3 bay garage on both sides of the property. I would like to convert these 3 bay garages into two units each. 1 bed 1 bath, and with some work on the floor plan I may be able to squeeze 2 beds. Using the existing shell and adding two floor plans seperated by a wall, I can pretty simply have two added first floor units per side of the building. I recently rennovated a 1 bed 1 bath unit on another property for about 6k. I expect after replumbing, electrical, town water/sewer hook ups, entry doors and windows cutout and of course everything in between to have about 15k into each unit. Will have 60k invested, expected 140k value add, and after decreasing existing rents a little without the garages, but adding 4 new rents I see about 10k added cashflow. Thoughts?
60k invested
140k expected value added
10k increase in cash flow