SFR to Duplex in Salt Lake Area
Hi All! Seeking input from anyone familiar with this strategy, as this will be my first larger rehab.
The Dream: Buy a distressed SFR with a detached garage. Rehab the single into a rental duplex and make the garage an owner occupied ADU.
The Financials: Buy around $375k, rehab for $120k(???), ARV around $600k = Free tiny home and cash flowing duplex
So far, I have Identified some areas with friendly (Duplex Overlay) zoning and plenty of detached garages. I can afford to buy cash and do a cash-out refi to fund the rehab and I have construction and project management experience to add value to the project myself. I've begun correspondence with the city planners and an architect to try and develop a general set of parameters in what to look for in a property that will be conducive to this strategy. Currently trying to network with contractors.
In the early stages still, so I'd love to hear your advice! What am I missing? How do you experienced rehabbers get more complicated construction costs dialed? Who might be a great resource through this process? I'm new to the area, so if any of you local experienced investors need help, I'll humbly be your grunt in exchange for a bit of your wisdom along the way :)