If you're having trouble finding a duplex, you can also look for a SFH with an in-law suite or ADU. A property that already has a separate kitchen and separate entrance would be much easier to tackle than going through the process of a conversion.
Rental Property Investor · Surprise, AZ · Member since 2020 · 405 posts · 179 votes
5y
@Zack Francis
You will want to look into zoning in your counties to see what they do and don’t allow. In my opinion it is better to find a good deal that is already a multifamily rather than attempting to convert one unless it makes sense and you can add a lot of value by doing so.
@Zack Francis I agree with the previous post. With the cost of materials right now I think you’d be better off with an existing multi than a conversion.
I was looking at a building with an existing apartment and essentially a large room with two bathrooms to convert into a 2 bedroom unit and a 1 bedroom unit and my contractor told me $120,000 for the renovations due to the cost of materials.
He believed I’d be all-in for $240,000 and rents would be $3000 per month with a cash flow of about $800. So close to a triple.
I decided not to do it because I’ve gotten focused on something else for now.
If you're having trouble finding a duplex, you can also look for a SFH with an in-law suite or ADU. A property that already has a separate kitchen and separate entrance would be much easier to tackle than going through the process of a conversion.