Garage conversion or invest in new property
need help here. I have 40-50k. should I convert my garage to a studio/1b apartment and rent that out or use that as a downpayment for a rental property? (it's a new construction 3bd 2b in an ok but not great neighborhood)
I don't know the value that would add to my home, but I know I profit around 400 per month as a long-term rental (renting out both units). if I furnished it or made both units an MTR, I would profit more. ($750 per mo cashflow possibly). as a 3bd 2b home, currently, it breaks even monthly.
If I buy a 200k house in Waco right now, I could rent it and MAYBE break even with 20% down.
what you you think is best? and why?
Most Popular Reply
Hey @Joe McKelroy, if you are running with a buy and hold strategy on your current property with that garage, then I'd convert it into an ADU. I've personally done this on one of my duplexes in Dallas, and it's been a great move to attract MTR tenants and increase my overall cashflow. You should run your numbers first and check with the city/HOA if it's allowed as well. Feel free to reach out if you'd like to talk about it.