All Forum Posts by: Account Closed

My first property I bought for 500k and will convert the garage into a second unit. The payment including insurance and taxes is $3150 at 6%. Total cost including the garage will be approximately $650k. Expected rents for the entire property between $4k-$4.5k. Now I come to see a place listed at $799k that’s a fourplex in a similar neighborhood with the total gross rents claimed to be $76000 per year and doesn’t look like it needs any work. How do I not kick myself for buying a property like that instead? Obviously I can buy more properties from here however I’m feeling like the one I’ve got isn’t as great as I had thought. 

Yes everything will be permitted. There is lots of parking. Other than the two spots I occupy there is room for 5-6 more cars in the two driveways it has. It’s a corner lot. If I go with the 2br layout then one of the rooms will be about 80sq ft so pretty small. The other bedroom would be about 130 sq feet I believe. If I do the one bedroom layout the bedroom would be 200 sq feet or so. I still think two bedrooms is better but the contractor says that the rooms would be small and people wouldn’t like that. Then I have friends saying no having two rooms means an office, place for a baby, or multiple people. It’s causing me to be pretty indecisive. What do you think?

I've bought my first property and am planning on converting the 700 square foot detached garage into an ADU and possibly splitting the house into two units as well. In the garage I've been trying to decide whether to go with a one bedroom layout or two. The contractor who will do the work suggests one bedroom so that the room is bigger whereas myself and others thought two would rent for more. With two bedrooms the rooms would be small. What's seems better for the highest rent possible?