Last year, I bought a 1900-built duplex for 120k under asking in VHCOL city in California. I'm a single woman in my 20s and intend to live in one unit. Long-term plan is moving out in ~5-7 years. I don't know if I would keep it or sell and buy a forever duplex or SFH with ADU.
The lower unit is in poor condition and had been rented for 2700 prior to my purchase and the upper could be rented for 3400 as is, given its newer condition and bonus small office. I am in the middle of remodeling the downstairs.
My dilemma: While living in the upper unit is desireable from a noise and light perspective, I can't commit to living upstairs and let go of decking out the downstairs for my own use. I assume decking it out will mean 25k more in remodeling. I'd love to get experienced feedback. Are my reasons for not wanting to live in the upper unit just silly?
1. Work also needed upstairs that I would save on if renting upper: The previous owner did a kitchen remodel of the upper and there are some lost opportunities like a 4" cabinet with a thick frame and lack of pullouts. In addition, there are features I would change if I lived upstairs that would be untouched if I rented: mini blinds, cream/yellow paint color. The lower unit needs to be repainted and window coverings redone anyway.
2. Uncertainty about how to spend on the lower unit's remodel given my area: I'm struggling to put cheaper things in as I may resell. In the lower unit, I've ripped out the carpet downstairs and determined new floors are in order. Given it's a VHCOL I don't love the idea of putting in vinyl. Hardwood floors will cost me $8k in materials (~1000 sq ft) and of course I want to live where the floors were hand-picked by me and new!
I'm getting opinions from my contractor and still researching exact costs. This is a chicken-egg problem: If I make the lower unit nicer than the upper unit I'll move in and possibly stay longer than 5-7 years, but making it nicer depends on committing to that goal from the outset. What's the right/better decision here?
