Building additional Master Bed/Bath as room rental

Building additional Master Bed/Bath as room rental

Member since 2025 · 6 posts · 2 votes

As part of my strategy, I would like to build an master bath/bed extension, with its own entrance, to the three bedroom, two bath home mentioned in a different post.

A 20'x15' (could be smaller) structure that can accomodate the bedroom and the bathroom. Maybe even allow for a small kitchenette for full privacy, although it would be attached to the house with a connecting door.

The yard has enough room to allow for it. While it would take up half the yard, with proper lanscaping, it can be made into a nice looking haven for the tenants if they choose to use it.


Could rent out for $1k in the area. My thinking is increased value and cashflow on a long term hold. Not immediate returns.


Any thoughts on this?

Build cost? 

Tax implications?

Any other thing I may not see?

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  • Ryan BlakePro Member
    Lender · TX · Member since 2018 · 936 posts · 713 votes
    1y

    @Jose Saladin you will likely not get a CO (certificate of occupancy) to be able to legally rent this out. Consult an attorney to review the zoning and see what is possible. Now you can always rent it out and just keep it on the down low but just be aware of the risk. Cost will likely be around $120 - $160 / sqft depending on finish out and how much one the existing house needs to change.

  • Member since 2025 · 6 posts · 2 votes
    1y

    Thank you for the insight @Ryan Blake

    I'm definitely looking to do everyrhing above board.

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