Lot with Potential, Garage on Property

[John O Stith]

Hey everyone,

I'm still starting out and don't have a ton of experience. But looking to expand. Been looking at purchasing a multifamily and it seems a little out of reach with the cost of refurbing some of the more dilapidated buildings locally. There aren't really any that are great except for a new construction that is going up. So I think instead I'll try and pick up a SFH. I talked to my neighbor about 5 months ago about purchasing the empty lot next to my current home, mostly to give me a little more driveway room. It has a garage that needs a lot of work. He wasn't interested in selling that alone, said he would have to sell the rental as well (opposite side of the lot). This is appealing. I believe I can pretty easily refurb the garage back to good order. Needs siding and things of that nature but I really think me and a buddy can handle it ourselves. Roof is great.

Here are my questions. How challenging would it be to refurb the garage and turn it into an apartment to earn a little income from the lot? It has electricity so that is one thing I don't have to worry about as much. Just need to make sure it is sized properly, 100 amp service. I do not believe it has water but don't know yet, so I'll have to make sure that I add it. Then down the road in a year or two build a smaller apartment building or duplex? Not sure what all I will need to consider when doing something like this. I am really looking for information or where I can find more information on zoning, water, sewage, or any other points of concern. I am interested in this information related to the garage and to the apartments. What all do you guys consider when building? Any thoughts or opinions? I know this is not an easy one. It is in Southern Indiana. Renting isn't a problem around here by the way, made it sound like a building would fail but I've never had trouble and neither has my mom or aunt. So not too worried about a complex.