Value-add of a Driveway?

[Mallory Healea]

We have a MTR that we received a zoning notice on from the city. They believed we were operating a STR. We are considering a STR option for this property for the summer months due to its proximity to the beach. The snag that we may run into however is the zoning office requiring us to have 3 off-street parking spaces. We currently have 0 off-street and only have on-street for this property. We would have to add a driveway in order to operate as a STR. So my question is would it be worth the additional investment? As of right now this property pays for itself with the MTR income, but the potential earnings during the summer months could prove to be very lucrative. Im just not sure of that actual value-add of a driveway so any insight is appreciated.

[Bruce Woodruff]

The first thing you need to know is what your actual numbers are. Exactly how much is it going to cost to put in that driveway? What are the city code and permit requirements if any?

Then, run your numbers on the potential STR income - what are your expenses going to be (they will be more), and what is your projected income based on looking at competition in your area on the sites?

Then, and only then, can you take Nathan's great advice and just do the math! This is easy, don't make it hard.