Converting garage to 1 bedroom apartment to create a duplex

[Chase Maher]

One of my flips under contract to buy currently is pretty interesting... its a 2 bed / 1 bath 950sf single family with a large 2 car garage. 

PP: 325k

Rehab: 45k

ARV: 460k

The area is an opportunity zone with strong rents relative to price point (for San Diego). Its unique because it already has 2 entry doors and 2 yards separated... with a conversion of the garage to a 1BR apartment it could easily be turned in to 1400-1500sf duplex with a 2/1 and a 1/1. Multiple neighbors have paved a portion of the front yard, so if the same was done there would be 4 off street parking areas.

Rents would be $1,750-$1,800 and $1,200-$1,250 = ~$3,000

ARV would increase to $485,000 if done with permits and the rehab would increase $20k.

Could be a nice BRRRR that would cash flow $500-$600 a month. Plenty more if AirBnB was put in place (Great area for that)

I have not done a conversion like this to create a duplex out of an SFR... anyone else experienced with this and have any thoughts?