How realistic is this? Here's the situation. The home is currently a 3 BR and 3 BR home with 2 bedrooms including a master with a private full bathroom connected to it. Finished kitchen and everything is set up on the main level. There is an entrance that essentially could be used as the initial entrance and one door could lead downstairs and the other lead to the main level.
For downstairs, there would need to be a kitchen added but there is one bedroom with a room that could be added with an egress window. So essentially a 2 BR 1 BR downstairs. All the utilities are set up as one unit, how expensive would it be to essentially make the downstairs into another unit? There is enough floor space to make things work and I believe the hookups for the oven and everything for the kitchen could be done. But is it worth it? Here are the numbers.
List Price: 274,900
Year built: 1976
Total Fin SqFt: 2,235
I would only offer about 250k, it's been on the market for 47 days.
The upper could rent out for 1,500/month
The lower could likely rent out for 950/month
Very desirable area.
Is this worth it? I would do FHA and live in the lower level and rent out the upper while working on some of the cosmetics on the lower level.
I would guess that a conversion is probably more costly than we'd initially think.
Where will the boiler/furnace and water heaters be located? Ideally, you'll have 2 of each. You'd want to have everything separated, with permits. Won't be fun unless you have plenty of cash, AND the city allows you to pull your own permits due to your occupancy status (like St. Paul does). Purchase price seems high for needing to put in all this extra money to make it work.
The bigger issue I see here is if the property is not zoned for 2 units financing that way will be near impossible especially with FHA. Further the city inspection in St. Paul for the rental will probably not allow 2 units in a SFR.
Even if it all worked out - managing this type of unit when you move on will be too much work and to sell you would likely need to take back to a SFR. I believe there are still too strong of duplex deals in the Twin Cities to have to get this creative.
thanks for all your input! Yep I decided not to pursue this after more research. Better to leave it alone and pursue a deal that has everything in place. Saves me the headache!