YOUR OPINION: Best way to get rental adds on a single family unit

[Jonathan M Peters]

I am currently renting a single family home and the new school bond has made my profit disappear. I have been thinking of adding a pole building garage so that I can justify a large increase of rent. 

Issue is the family I have in the unit have been there for 5+ years and have not been showing signs of leaving anytime soon.

Do you think that this is a good avenue? It will be about a 10k investment into the property but I should be able to increase the rent around 300 each month and gross a 350-400 a month profit.

Any other suggestions are greatly appreciated!

[Nathan Gesner]

I agree with Charles. If a tax increase caused you to lose all profit, you must have been skating on thin ice in the first place. I would consider selling and getting into something that produces real cash flow, particularly since we are seeing what I believe to be a peak market.

If the family has been there 10 years, odds are pretty good you're a little below market. It would be easier to hit them with a 3% rent increase every year then to go through the trouble of adding a structure and increasing rent. You're more likely to be hit with a vacancy that will eat up any possible profit.