Which would you choose: build or buy?

[Amy Kircher]

Which would you choose in my position??

I am looking at investing in my second rental. My rental now is great, as it’s my downstairs that has its own entrance, more than pays my mortgage plus gives me several tax advantages and write offs.

I am considering either purchasing a SFR in my college town that has a strong economy OR building a garage with an apartment on my 15 acre property. I would be using one of the two garage stalls for myself. Not sure if that is a pro or con as far as taxes, etc. (I live in northern Minnesota). I would build this a short distance away from my house but still close enough to utilize the garage stall.

So far in my research I’ve determined that the cost would be approx 80k for this garage and apartment vs around 100k or more for a so-so house in town that would rent for the same amount.

I know I wouldn’t have trouble finding a tenant for either option.

What is the best option?