Looking for some advice. Last year we bought a house near Indiana’s largest lake on 6 acres in Bloomington, IN. Paid 180 and it appraised at 205. It is kind of a weird place in that there are only 2 bedrooms and small single bath but huge living room and decent kitchen, 2000 ft of living space with 1600 ft of attached finished garage. We bought it as a place we would eventually like to move into but for now use it as an Airbnb because the husband's job requires we live onsite. We removed the drop ceiling and raised them 1.5', removed florescent lighting throughout and did a lot of general type upgrading. The changes we made would definitely make it more appealing to buyers but probably wouldn't do anything for appraised value. Our plan is to eventually create a large master suite, another guest bath and laundry in the current garage. There would still be room for a 2 car garage in the space.
We would like to get into BRRRRs. My question is, would we be better off renovating the garage to bring the home to 3000 ft of living space, 3 br, 3 ba and refinancing to have money for the next deal, or just going out and trying for a completely new deal? We feel like making these changes could potentially bring the value up to 300k maybe more based on others in the area with this kind of acreage. Any thoughts for these newbies? Can post pics if that helps. Airbnb currently covers all expenses.
