Converting a home to a 2 family from a single family

[Nicholas Stolfa Ryder]

If you have a single family home that is very old (paid off) and needs to be rehabbed, would it be smart to tap into the equity to update it and covert it to a 2 family home. It can easily be a 1 bed 1 bath on the bottom and 3 bed 1 bath on the top.

[Zach Westerfield]

I like the idea of doing this. Usually 2 units will rent higher than one large one. Plus, you have 2 sets of tenants, so if one leaves you still have income coming in. 

First you will need to check your local zoning to make sure its allowed. If so, evaluate the property. Can it easily be split? what about parking? it shouldnt be hard to get an estimate for the conversion. Once you do that, estimate your new rent, and analyze the numbers to see if it makes sense.