Hi BP,
So I have an opportunity and am trying to decide what the best use for the space would be. Below are some of the numbers, I'd appreciate any advice on how to go about the conversion and also which scenario looks best.
Single Family Home. 206 Chestnut St.
-4 bed 2 bath
-2 kitchens
-3 levels
-Asking Price: $49,900
-Appraised Value $61,300
-Has a commercial garage that is being rented on the back of the house by a plumbing company. Company has occupied for 12 years. $500/month.
Renovations Required:
-Paint
-Update Flooring
-Deep Clean
-New Fixtures (Fans, lights)
Capital Expenditures:
-New Roof (2 years old)
-Water heater replaced 3 years ago
-Updated electric. Baseboard Electric Heat.
-No A/C
My question is what would be teh best use for the space. It can be converted to a Duplex if I desired to. I have a Duplex that is down the street collecting
-Unit #1: $510
-Unit #2: $510
I think safe numbers for this home would be: Could be higher
-Unit #1: $450
-Unit #2: $450
The Single Family Home could rent for :
-$650/month
My biggest concern is the Sale after I hold for 5 years. The Duplex Comps would probably only go for $60,000 based on the current market but there are 3 houses on the same block that have sold for $90,000 in the past year.
So Final Numbers:
Single Family: $650 + $500= $1,150
Duplex: $450 + $450 + $500= $1,400.
Which would you do?
