So we have just closed on a 100 year old home for under $80,000. The house is only 972 sq ft; however, the selling point was the detached garage. The original plan was to convert the garage to a small living efficiency and turning the converted back to rooms into another small living efficiency. It was going to be a triplex with a cash flow of about $700 after paying utilities and mortgage.
Sounds great huh? We after the contracting came we had to drop the garage idea. The debate is whether or not to still change the back rooms into a efficiency. The total cost of the renovation is between $5000-$6000 to change the back area. This change would allow us to cash flow about $230-$300. Leaving it as a single family home would allow us to rent it at about $895 which would give us a cash flow about the same amount. Duplex however as we all know can have 50/50 chance of being occupied. We would love your feedback and I can add any additional information as requested.
