All Forum Posts by: Jacob Flaxman

Quote from @Ben Trageser:

Parking in OB is highly sought after as I'm sure you know. I personally think it really depends on how much value will it add to the property and if the town will allow it. 

If you plan to sell it in the near future, I would focus more on the added value overall. If it provides a nice return on investment and you plan to hold it for a long while, then it makes sense.

I already talked to the city and its OK to do what I am describing. 

I currently STR the two units with a plan to only STR one of them once I build the extra unit. 

When you added value, are you saying that I should do the garage to add value to the property? Or just focus on getting the current units nicer?

Quote from @Bruce Woodruff:

Knowing that area very well, I would say keep the garage. Parking is worth more than money down there in OB.....

And I am pretty sure that your $$ numbers are low, about 50% at least.

Got it. I am leaning towards keeping the garage and adding a unit on top. The adjacent property has the same layout as the one I just described. This would leave 1 unit without a garage but I STR that anyways.

Also to note the garage is very small and awkward to park in. It can barely squeeze my Tacoma in there. And once in, its so narrow I have to weasel out of my car. 

As the title says, I have mixed feelings about this project. I have a duplex in a premium location. One block from the beach in Ocean Beach, San Diego. There is a detached two-car garage that the 2 units split. I can convert the garage into a one or two-story extra unit on the property.  I am worried for two reasons: removing the garage will reduce the value of the homes more than the extra unit will add, and the property value will not increase that much with the extra unit(s). The area does not have many units with parking spaces or garages, so, I am not overly worried about this (will probably reduce rents by $100-200). The two existing units can rent for about $2,500 each, and a garage conversion single unit will rent for about $2,800. Construction will cost about $120,000 for a garage conversion and $250,000 for a two-story, 2-bedroom. (2 bedroom will rent for $4000-$4500). 

My initial reaction is that it costs $150,000 to add an extra door in a premium location, but I am interested to hear thoughts.