SFH on larger lot zoned for 2 Family, options?

[Chris L.]

Hello all,

I currently own a SFH on a .6 acre lot 20 minutes outside NYC. My home is walking distance to a commuter train and close to all the major highways in the area (rt 80 46 23 3 287...) I have been looking for SFHs as rental properties and put some offers in. Even though I go over asking, the banks always go with a lower all cash offer. At the same time I have been marketing my lot for subdivision to builders. It occurred to me it may be best to build a garage/adu or large addition in order to capitalize on my lot size and the fact that I am zoned for 2 family.

I am not sure my town will allow a detached garage with apartment above, but since I am zoned 2 family I should be able to add an addition with minimal/ no variances. I would much prefer a detached building though.

My goal is to create a 2br short term rental and some garage space with an eye on maximizing return on investment. (maybe a 3br will make more financial sense,  not sure yet).

Have any of you ever turned a SFH into a 2 family by adding a large addition? What have been some complications with this process and where should I begin?

I would like something similar to this- http://www.eplans.com/house-plans/epl/collections/...

Any ideas of what construction costs will run for something like this? 

Any guidence would be appreciated!