Detached garage HouseHack

[Michael Behr]

I’m currently looking for my first deal. It’s been difficult to say the least. I do have a primary residence that has a detached garage. I could turn this into a separate unit. I’m not sure if it will rent in my area. Has anyone done this? How did it rent and how was it living close to the tenants. I have 2 kids every other week so trying to be creative to get in the game

[Andrew Postell]

@Michael Behr first, you have your first deal - your own home.  Keep in mind that just having your own primary home should be reason to celebrate.  Lots of people don't even get that far.  You are on your way to building wealth - congratulations!  

Now, to answer this specific question, we need to analyze the comps. Meaning, the comparable sold homes in your neighborhood. The reason why I am saying this is if you do enclose that garage, and turn it into an "Accessory Dwelling Unit" (that's the formal name for them, sometimes called ADU) will you harm or help the value of your home?  This might be something we need help determining and usually a realtor can show us what the "comparable value" would be if we removed a garage and looked at properties with ADU's.  So, if all the properties in your neighborhood have garages...and none have ADU's...then you may not get ANY value from adding that extra unit.  In some neighborhoods you might be HARMING your value by removing a feature of your home. 

Let' assume for a moment that it does HELP our value...if it helps our value $20,000 but costs me $30,000 to build out...then that also will give me an answer too.  Knowing that "comparable value" gives us the starting information to know if it's worth doing or not.

Hope all of that makes sense.