Converting Attic to an Apartment

[Rodrigo O.]

I read a similar discussion: Attic Apartment. However, I'd like further comments on this topic if anybody has actually done an Attic-to-Apartment conversion. Once it's constructed, I'm moving in and living for free (cash flow-wise).

Background:

• 1,350 sq ft SFH, 3bd 1bth, built in 1925 with spacey attic,
• Appraised at $90,000 - May 2013,
• House currently leased at $850,
• Attic Apt. will be all electric and have separate meter, only water bill shared (hopefully can sub-meter),
• 500-600 sq. ft. Attic Apartment potentially rent-able at $500,
• So-so neighborhood; several homes OK condition though NONE vacant,
• Located 0.5 miles from downtown (currently being revitalized) and 2 miles from University.

My questions are:

1. Exit Strategy - will the home be harder to sell as a Duplex vs SFH?
2. Market Price - Generally speaking, will Market Price rise significantly more than the [Appraised Value] + [Apartment Addition Construction Cost] ?
3. Related to Question 2, on average, by what % does a home go up in value when an addition is made to convert it to a duplex?
4. Anyone have experience in an attic conversion? How much did it cost you? What unexpected problems did you come against during construction? Was it worth the hassle of converting it?
5. Any other relevant comments would be greatly appreciated.