Should I convert a single family home to a duplex?

Question

Hello, this is my first time posting, as I'm new to this site. I've recently closed on a 3/2 house that has had the garage converted to bedrooms (making it a 5 bedroom). The layout of the house would work well as a duplex. Market rent on the house is appx. $1800 as a 5 bedroom. If I convert it, the 3/1 would rent for around $1500. The 2/1 smaller unit would rent for around $900.

There would be some conversion costs, but not cost prohibitive. What should I know about ? Am I missing anything? Thanks.

There would be some conversion costs, but not cost prohibitive.  What should I know about ?  Am I missing anything?  Thanks.

David Dachtera · Answer

Well, have you discussed zoning and occupancy with the municipality?

If you can clear those hurdles, are 2/1 and 3/1 what the rental market is seeking that area?

If it's a garage conversion, understand that the added bedrooms may be sitting on the formerly garage floor slab - those floors will be cold and hard, even with padding under carpeting or a "floating" hardwood floor. You'll need to verify insulation in the walls AND the "atiic" (formerly loft) space as well as the roof itself.

You HAVE done a through inspection, right? ... by a professional inspector?

You're prepared to duplicate the plumbing, electrical and heating systems, including adding any additional meters needed?

Jesse Eberle · Answer

Thanks for the input everyone.  I see quite a few homes in our area converted to have an additional dwelling unit, or a "mother in law" unit with a separate entrance.  Generally they share the same utilities, etc.  There are quite a few older farm houses, that are now 4 unit properties.... in single family zoning.  They've been that way for years and no one seems to care.  The landlord sure gets great cash flow though.

Andrew Meyer · Answer

Zoning and occupancy are the biggest issues I see. I would double/triple check those before I ever looked much further into SFH->MFH.