When to develop a rental property from Duplex to Triplex

[Thomas Corey]

We have a duplex and one of the units (2bd/1ba) is in sorry condition and may be nearing the end of its useful life - as in, its foundation would take 50-60k to fix and the wood siding needs to be replaced at not an insignificant cost. My question is: how do I know when it's time to tear it down and build a new rental? We think we have enough room to make the current rental unit into two separate rentals making our duplex property into a triplex.

[Steven Foster Wilson]

Quote from @Thomas Corey:

We have a duplex and one of the units (2bd/1ba) is in sorry condition and may be nearing the end of its useful life - as in, its foundation would take 50-60k to fix and the wood siding needs to be replaced at not an insignificant cost. My question is: how do I know when it's time to tear it down and build a new rental? We think we have enough room to make the current rental unit into two separate rentals making our duplex property into a triplex.

 When I have an idea like this, I often will start meeting with contractors to get quotes as well as ideas of what they think. By doing this it helps myself have a better idea of what to expect and even gives me new idea of things I never would have thought to do. It’s always important to run numbers as well to see if it would even be worth it based on how much rent goes around you.