Building a detached garage with apartment

[Ben Howard]

Hi my name is Ben. I live in Nashville, TN and am looking to build a detached 2 garage with 2/1 apartment above. I personally went down to Metro to get a building permit because I wanted to make sure what I wanted to do was even feasible for our property, zoning restrictions, etc. Prior to getting the building permit, I had the lot surveyed and site plan drawn up. Before starting the project I talked to a few general contractors that said the type of building I am looking for 25x25 detached garage would be $50K to build. Our plan is 24x24. We are in talks but still looking for a contractor. The project should be funded my early next week as we closed on the loan this week. 

For the numbers on the deal, the loan is costing an additional $235 for a total mortgage/taxes/insurance/etc number of $1120 for $55k in cash. I believe the rental value for the property including a two car garage is in the $1400-$1600 range. 

I'm looking for any knowledge or experience you can impart on a project like this, if you know a contractor that would be good, anything. Thanks in advance!!

[Matthew Bolton]

Hey @Ben Howard, 

I am a GC here in Nashville.  Our focus is infill development but we do some remodeling and custom builds also.  Just throwing this out there for your consideration...we have been working with a prospective customer to build a 25x25 detached garage in Green Hills.  This particular build has nice exterior finishes but it does not include insulation, drywall, trim or paint on the lower level and has no second floor whatsoever.  Only rafter space for storage.  The cost to build alone, not including the builder fee is $35K.  We anticipate coming in under budget but it shouldn't be any less than $32-33K cost to build.  

Hope this helps, at least for budgeting expectations, as you work towards your build.  DADU's are a great revenue add!

Happy Investing!