Renovating a Casita

[Josh Baca]

Good afternoon you all. I'm coming here to ask for a little advice. In the backyard of the house I currently live in in Albuquerque, NM, there is a small 1 BR casita. It is not currently livable as I have been using it for storage and to play music. In order to make it rentable again, it would cost between 15-20k. From what I have seen from comparable rentals, I could expect to rent it for around 550-650 (although I could be off because I have never done this before and I am not an expert). The house is paid off and I am looking to start investing in rental properties. 

Would this be a decent investment opportunity? What questions do I need to take into consideration?  Is there anything I should research or are there any good resources I should look into?

Thank you for your help and have a great start to your new year. 

[Leland Titus]

@Josh Baca That would be a great place to start investing! With the house paid off there is no mortgage payment to worry about during your rehab. The returns are great! at 650 a month your talking about adding almost 8k to your income. Not only will you have your entire initial investment back out in a little over 2 years but you will also have built in additional equity to your house, and gotten some great tax write offs along the way. For your first investment this should allow you to get your feet wet with out hardly any risk and get huge returns. My only question is what in the world have you been waiting for?