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Updated about 10 years ago,
Man Cave or Casida
I've got a detached garage I recently converted to a second living room. It cost me appx $5k to dry wall, carpet and tile the room. Prior to beginning construction I had a vision of the ultimate "MAN CAVE". Endless parties, intense ping pong tournaments, and 24/7 football. Unfortunately my vision of the "Man Cave" has fizzled into nothing more that a cluttered storage room.
Since finalizing construction of said "Man Cave", I've recently learned about a lot of other people in my neighborhood converting their garages into Casidas, which typically rent for appx $400-$500/month. In order for me to do this I would need to drop another appx $7k into plumbing, shower, kitchen, etc.. So my total investment at that point would be $12k which at $450/month (average) = $5,400/year which is a $5,400/$12,000 = 45% return on my investment (not including expenses). Since I live in the main house and will charge the tenant for all utilities I'm not expecting too many expenses (maybe i should??).
My question is, do I keep the "Man Cave" (storage space) or do I convert it into a rental unit??