What to do with a mother-in-law suite?
I have 13 rentals and several years’ experience as a landlord. I have now decided to give flipping a try. I just signed a contract on the first house I intend to flip.
This house has a second apartment, or mother in law suite, attached to it. The MIL suite had 1bd/1bath, living room, dining room, and kitchen. It has a front door and back door but no access to the main house. It does have its own power meter.
I am not sure what to do with it. Here are my options:
1) Renovate it with the rest of the house and leave it as a second apartment.
2) Add a doorway to the main house, remove the kitchen, and remove the extra power meter. This will increase the bedrooms and sq/ft of the main house.
3) Add a doorway to the main house, but leave it with the second kitchen. Then I get the extra bedroom and sq/ft, and it could be a MIL suite or just part of the house. (But the do I keep the second meter).
I am getting the house for $32k, and expect to spend about $25k on the rehab. I think it should sell for about $100k. I have the margin to add some rehab cost to make sure I do the best thing.
I have pictures on my blog – it’s called the “Bathroom Hole House”.
Any advice?