Tear-down or repair this "garage" at a 2 family flip?

[Jonathan Bombaci]

We are in the process of flipping a 2 family in central Massachusetts. The property is probably a better fit for an investor but it could be appealing to an entry level househacker. There is a shed/garage on the property that one of the tenants uses for storage and it is in an awkward spot in the driveway. It is an eye sore and would not pass the FHA appraisal. We got a quote for $9000 to replace the roof, vinyl side it to match the house, and replace the front door with a garage door. Or we can have it torn down and hauled away for about $2000.

You can maybe rent a garage for 75-$125 a month in this area. It is on the property line and grandfathered in so chances are if we tear it down it won’t be able to be rebuilt. I know garage also adds value from an appraisal standpoint as well which isn’t a bad thing. It's also an oddity for a 2 family to have a garage in this area so it could be a small differentiator.

So what do you think is it worth saving or should we have if torn down?

[Mason Hickman]

@Jonathan Bombaci

I would try to save it; storage space is always in need at a rental and can be a differentiator. Plus, if it’s grandfathered in and you can’t build it again, you will take away the value a future buyer might have.

My wife and I recently bought a duplex and the detached garage was a big factor that allowed us to make it work for our house hack.