Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
BRRRR - Buy, Rehab, Rent, Refinance, Repeat
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

44
Posts
38
Votes
Mike Malyy
  • Investor
  • Sacramento, CA
38
Votes |
44
Posts

What to do with the garage to maximize ARV?

Mike Malyy
  • Investor
  • Sacramento, CA
Posted

Hi BP community,

I would like to get your opinion on my situation. I am currently under contract to buy SFH (3/1, 1058sf), with a half done garage conversion (450sf). Previous owner already put in a full bath and weatherproofed it, but hasn't done anything else. Because I will be doing the rehab and garage is a clean slate, here are a few options I am considering:

  1. Convert it to a master suite, which will make the house a 4/2 with 1500sf
  2. Convert it to a studio
  3. Convert it to a 1/1 

My goal at the moment is to maximize ARV for refi, but I am not sure how the appraiser will look at it. Once the refi is done, garage will most definitely become a 1/1 for additional income. My dilemma is whether I should just go for it right off the bat, which will save me some money, or make it a master suite first, and then convert it after the appraisal.

Thanks for your time.

  • Mike Malyy
  • Most Popular Reply

    User Stats

    44
    Posts
    38
    Votes
    Mike Malyy
    • Investor
    • Sacramento, CA
    38
    Votes |
    44
    Posts
    Mike Malyy
    • Investor
    • Sacramento, CA
    Replied

    @Dan Sundberg yes, that's the plan later on. The detached garage also has a 1/1 ADU on the side so it will turn into a duplex eventually.

  • Mike Malyy
  • Loading replies...