HELP! Add a Unit to my Duplex?

[Matthew Lindquist]

Hey Everyone!

I have been posting a bit too much but I need some help! I just bought a duplex with an unfinished basement and am thinking about adding a unit in the basement (if zoning permits me to). I cant imagine it would ever make much more than $400 in my neighborhood, but it would dramatically increase the value of the property. I would need to put egress windows in, bathroom, and a basic kitchen. It would be a studio. Otherwise I could rent out the space as storage with no value add. Thoughts? I would love to talk to someone in minneapolis who has done this.

[Kevin Siedlecki]

@Matthew Lindquist. In my area, it is very difficult to convince zoning to allow that. That said, even if it only makes $400/month, it should have a great ROI. Since you're not taking on any debt or extra expenses (except possibly water) to add that income, your COC ROI on the $25k investment is almost 20%.

Always good to use all the space available. Good luck with zoning!

[Laura Thorne]

I am curious to hear what you learn.  I also have a duplex in Minneapolis with a large unfinished basement and a small working but unused 1/2 bathroom.  The basement is just used as free storage (it helps rent out the units) but if I could get a studio there for $500/month that would be amazing.  I am curious if zoning permits an addition and what it costs to build a unit.  Let me know what you learn!

[Dylan Barth]

Matthew,

I agree with @Kevin Siedlecki that without any more information it sounds like your potential for ROI in adding the unit would be huge. Hopefully zoning allows you to do it and you can boost your investment with forced appreciation and cash flow! Good luck!