Hello!
I own a 5 bedroom 3.5 bath 3,000 square foot home in Rapid City, SD. I'm in a nice location right between 2 busy hospitals.
There are a couple of duplexes down the road from us that have an excellent occupancy rate. All with long time tenants.
My basement has 2 bedrooms and 1 bath. There is also a large 12x14 storage room that could be converted into a room too (or opened up for a kitchen). There is also a large open space between the living room and one of the bedrooms that would be a great kitchen/dining room area.
With some work and rearranging I believe it could be converted into a duplex. There is direct access to the basement via a back door. I would need to add a sidewalk. There is a large 3 stall heated garage. Possibly wall off one of the stalls for the basement tenant. I would absolutely need some sound proofing. You can hear too much downstairs! Large yard that is .8 acre with garden, deck, and basketball court. The rental market here is good. About 36-40% renters. It is also a vacation destination for Mt. Rushmore and the Black Hills. I could potentially use the downstairs unit as an Airbnb. There are also several traveling nurses that rent in our area too, so that is another option. Housing market is currently over priced.
Long story short...would it be worth converting to a duplex? I would stay upstairs and rent out the downstairs unit (a bit of a house hack). Rent for 1,000-1,200. I have about $65,000 in equity. Appreciate any suggestions/direction/input. I would be a first time REI with this project. Or, should I take my money and invest it elsewhere?
Thank you!!!
