Does adding a garage to a duplex flip make sense?
I am looking to flip a duplex that currently has no garage. If it were a SFH, I would add the garage in a heartbeat, knowing that it would be tough to sell without one. However, the person who ends up buying this duplex will almost certainly be an investor. This investor will mostly care about how much rent he/she can charge, and to what class of tenant. This property is in a B+/A- neighborhood and finding renters will never be a problem. Of course renters would prefer to have a garage, but I don't think the price garnered for a duplex with no garage will be drastically lower than one with a garage...meaning the potential buyer might not be overly concerned with the lack of garage? I could be totally wrong, and I'd love to hear some opinions. Will prospective investors looking to purchase a duplex value it enough to justify the cost of the addition? The overall numbers on this one will (hopefully!) shake out pretty good either way, I'm just trying to maximize if possible.
It will likely be a 25-30k cost to add, but will not increase our ARV nearly that much. We may need to end up putting in a parking pad for 8K, meaning our garage would then only cost 17k-22k. Thanks in advance!!