[Calc Review] Help me analyze this multi-unit deal (San Diego)

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Help me analyze this duplex property located in San Diego. The rental income is based on how much it could rent for AS IS. However, one of the units has a lot of sq ft to be able to add another room. In addition, the garage already has dry wall and I think in the future there could be a possibility of converting it into a studio. 

Any feedback is greatly appreciated!

[Dan H.]

I would allocate a lot more for maintenance/cap ex. If not owner occupied your interest rate seems too low. If not self managed your PM fee is too low.

ADU rules do not apply to a duplex so you may not legally be able to convert the garage.

The 50% rule shows this as negative over $500/month but at this rent point the 50% rule is very conservative. If we use 45% then negative $325. How much more rent can you get for an extra BR?

As projected on the calculator, I would never recommend a buy and hold RE at a cost of $145K for a max of 9% annual return (at year 15). That is below the lifetime S&P 500 return. Are you expecting better market appreciation or rent appreciation than depicted in the calculator? Is the only value adds adding a BR and possibly converting the garage (which I think is unlikely today but given a few years may be a possibility)?

Good luck