I'm wondering if anyone has a rule of thumb cost for splitting a SFH into a MFH under the following assumptions:
- Splitting Power/Gas between the two new units where the circuits for the home don't need to be rearranged, just separately metered.
- No major floorplan changes (ie legal external doors exist for both units) other than converting 1-3 doors or archways into walls between the new units.
- No work done to the Water/Sewer for separate metering. Leaving that as a landlord paid utility.
- Average legal/city filing costs for splitting a home (if any?)
Mostly, I'm curious if this is usually an economical option to convert the large stock of SFH to MFH locally, rather than competing for MFH properties. I see a decent amount of evidence that its been done in town before, so someone must have thought so! Thanks!
This is a great move and I am surprised that it is not addressed more often. It sounds like your conversion costs are minimum and that the present layout of the home makes a division quite easy. The beauty of this is that you should see a marked increase in rent and a more stable income stream (when one tenant moves out, you still have another one).
As to a rule of thumb for costs. As a retired appraiser, I cannot think of one off the top of my head. But I would think that if you could recoup the costs within 12 months off the additional income, you would be in a great position. Go for it.
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