STR ADU - Garage Apartment

[Wes M.]

Hi All, I am starting to look into the numbers for construction of an accessory dwelling unit at our primary residence. Ideally, this would be a garage apartment with some office space below and approximately 600 to 700 sf unit for STR purposes above. The unit would be accessible from a rear street, so little to no interaction with us. This project would be in Wilmington, NC.

Has anyone in this area done such a project? If so, what were your construction costs? I am thinking $120k roughly. Also, curious how others have financed these units. I would anticipate the return to be quite favorable at that cost, but I really have no as I have not had a discussion with a contractor to date. Thanks for any help you can provide!