Build out apartment or buy additional rentals

[Matt Laird]

I own a house with a garage apartments, house is rented for $900, it currently has 2 efficiency apartments renting @ $500 month, the first level is a 600sq ft. 2 car garage w/ a cellar & 8’ ceiling height, currently vacant, it was renting for $100 to a previous tenant...

The entire building needs windows, siding & a roof

Here is my question; do you recommend spending an additional 25-30k to build out the garage into a 1 bedroom apt? It would rent for $650-$700. Now would be the best time to do it, Install the windows & doors prior to bricking & siding the exterior. I’m not sure if it would increase the value of the property, only the income...

Option #2 would be take the 30K w/ leverage and invest it into another property, could possibly yield a higher return.

FYI Talked to the city, it will be no issue for zoning, I can have up to 4 rentals on the property..