Build a garage or save my cash?

[Derrick Lubomski]

Hey BP members, I'm in sort of a predicament that could use some outside input. 

I'm closing on my first duplex for me to house hack in two weeks and can't decide if it'l be worth it for me to build a detached garage or not. I have a ton of tools in storage that I need to move in; welder, air compressor, wood working tools etc. It has a large basement I can put everything in, however rebuilding and flipping motorcycles and cars on the side is a hobby of mine, which I can't really do in a basement.

Now I only plan on living in this duplex for 2 years at most before I refi out of the fha loan. In the meantime I'm going to pursue more rentals using the brrr technique and hard money lending. 

For the predicament...

I see the garage as potential for extra income, I'd put a divider in it so I can keep one side for myself and rent the other out for around $125 a month. When running roi though I'm treating it as if I were renting both units out for 11 out of 12 months at $125 a side. The investment is paid off in year 3 then after that its nothing but straight cash money on top of raising my property value. Typically this would be a great investment, but I'm only 25 and trying to work towards financial freedom, so would my limited cash be spent better towards my next rental? As I stated I intend on using hard money to acquire more rentals, which the lender I have been talking with will lend 85% of purchase cost and 100% of rehab cost up to 70% of ARV. So I'll still need 15% of purchase cost and interested up front.

Typing this out it's starting to come more clear what I think I should do, but what are all of your opinions?

Thanks!

Derrick

[Derrick Lubomski]

@Jim K.area is Crafton. As for plans and building permits, that won't be an issue. I'm a civil engineer who has been part of teams that managed the construction of 40+ million dollar buildings. I already have right of way/easment information from the borough and know my property line offset. My buddies, are all professionals in the industry, the concrete will be poured by friends who do this on a daily basis, and the electric will be done by my roommate who is currently an electrician in the union. No need to worry about a half a** garage being built