Done right, it would look like a small cottage in the back.  

You might not be able to afford a beach cottage (yet) but you can diversify your portfolio and find a great escape as well. 

It will cost you something to sell the home (think realtor commissions, title company fees, gov'ment cheese, etc) and it will cost you something to do the project (think holding costs, like the interest you'll pay on the loan while the project is happening)So, when you think of selling for $377,548 (if indeed that is viable), you'll want to take something off the top, say 7.5% to represent all costs of sale? 

Drum roll…goat cheese, of course!

I own a home (Cottage) and I also have an investment property (Forestbrook).

I'm considering converting it into a cottage and doing monthly STR rentals to local travel nurses (that's a big thing near me).

We had about $60 worth of fresh sealed deli meats and cheeses in our fridge in one of our units last summer. 

We have a neighboring small, nondescript, 2 bedroom, 1 bath cottage that is often booked with too many people.

Our only property outside of KW is our Waterfront cottage in Parry Sound we rent out when we are not there.

Median home price in SF in 2000 was $500k, Median home price today it is $1.625M and increase of 225%Median home price in the South/Midwest in 2000 was $160k today it is $290k an increase of 81%@Abhishek Banerjee Either or, although the back cottages or separate structure on a lot is less appealing as you have to deal with egress and easements.