Project Apartment: Best Investment Direction Question

[BrokenTrack]

We have a decent house here, and have improved it to the point where every room of the house has been modernized and would meet "Property Brothers" or "Chip and Joanna Ganes" standards. By that I mean, double vanities, double kitchen sinks, a huge great room, wide barn flooring throughout, shiplap walls, pine ceilings, a nice master bedroom, and even a dog washing station.

Our current house has a master bedroom of course, but it is not situated well for a Master Suite (no place for a master bathroom), so instead we have Jack and Jill walk-in closets in the master bedroom. (My wife calls hers a "shoe barn".)

So now we are moving on to making a one car garage I moved from across the road, onto this one: into something usable. This will thus transform this one car garage into a space that is (13 x 22) and a bathroom that is (9 x 13). The problem is, I am not sure which direction to take it.

That sucks because we cannot divide such a small, main room into (2) bedrooms, so it either has to be a master suite, or a inlaw apartment. I think having a (4) bedroom, 3 bathroom, house with master suite will make it have top value, but my wife thinks a (3) bedroom, with (2) bath, and inlaw apartment will make it more valuable. Either way, we will add 600 square feet of hospitable living space onto the house, and have a 3rd bathroom. The reason I ask is, I would like the house to appraise at $20,000 more than it was when we had it appraised last year.

So should I make the one car garage into an inlaw apartment with kitchenette included, or make it into a master suite. Which has more value on a home?

 

[Frankenkubota]

I don稚 have any idea but.....I just went thru my 25th closing and I知 not a realtor.

In Oregon I had a 4 bd rm rancher with a 2 bd rm mother in law apt/tiny house.

That made it hard to sell but it truly was a second house, separate structure.

Im building a small 2 bd rm house now, 2 master bd rms. Tiny kitchen, if the microwave fits, I知 good.

The 2 car garage is a separate building. On one end is my little shop, on the other, an apartment, maybe 600 sf. Murphy bed.

Biggest mistake I致e made in a while. It costs lots more money both in terms of building but also septic increases and permitting goes from permitting a garage to living quarters, which is more $.

In my case, no one will probably ever use the apt. I just thought it would be nice to have if someone visited. Someone some day will be thankful?

No clue on how it all affects resale.

I致e learned, if your building it for yourself, build what you want now and enjoy it. If your going to sell, build it for the market.

I知 my case, a 2 bd rm house at this price point is stupid and probably unsellable.

Good luck

 

[BrokenTrack]

I have lived in (2) tiny houses myself, so I know what you are saying. I love my wife and kids dearly, but if my wife died tomorrow, within the month I would build a cabin out in the woods and be a hermit. The kids can come and visit when they wanted, but i would rent my other houses out for sure.

As for this house, I started it 26 years ago, and just keep on building onto it, and it was going to be my only house, but I have collected (2) more along the way, and about to get a (4th). My parents adopted my sisters that have Down-Syndrome so now that my parents have aged, and it would devastate my sisters to move from the only house they ever knew, it means we might have to move to their house instead.

So for now it is our house, but in the next few years, it might mean we will sell it, so making it the most valuable makes sense (although somewhat a moot point because we own it outright, so it would just be more money, and not a mortgage company to pay off.) Still, if you are going to build something, it would make sense to get the most income potential possible out of your investment. That is why I ask...

 

[EddieWalker]

...so it either has to be a master suite, or a inlaw apartment. I think having a (4) bedroom, 3 bathroom, house with master suite will make it have top value, but my wife thinks a (3) bedroom, with (2) bath, and inlaw apartment will make it more valuable.

I'm a contractor and I do a lot of work for people who are selling their homes. Just about all of them want me to do things to their homes that they have always wanted to have done, but never add any value to their homes. Some are determined to do these things, others understand that they are just spending money without any chance of improving the dollar amount they get for their house, or how quickly it sells. The really smart ones will already have a good realtor, and they are doing what they realtor tells them do to that will help the house sell for more money. If the question is in how to improve the value of your house without spending more then it will increase, I would talk to a realtor that sells 30 to 50 houses a year, or more, in your area. Most realtors are lucky to sell ten houses a year. You want to talk to the ones that know what people are looking for, and what the latest "fashion" is in what they are buying.

Having said that, and not knowing the market in your area, I would run away from the in-law suit idea as fast as I could. Very few people are looking for that when buying a house. Location is always king, then square footage, bathrooms, kitchen and storage. Make all of those things really nice, and you will increase the value of the home more then what you put into it.

If it was my house, I would do everything possible to have a master bathroom attached to the master bedroom. I also think that there is always a way to make this happen. It might not be ideal, or easy, but it's almost always possible. I have clients that have lived in their homes for decades and thought that it was impossible to do something, when it's actually pretty simple, but they had convinced themselves that they couldn't move the toilet, or bathtub, or whatever, to a different location. By doing something simple like this, they can overcome the issue with the layout of the house and have that big master closet, or extra space for a large walk in shower. I have one house that's over 5,000 square feet that has wanted a bigger shower for the last 10 years, but couldn't figure out how to do it other then an extremely expensive addition. I suggested closing in a window and changing the direction of the bathtub. Now the shower can be big enough for both of them, and they still have a bathtub. Instead of a $60,000 job, it's under $15,000.

But there is also the factor of the land. The worse house will still sell for top dollar if the acreage is good. This is extra important when considering putting money into the house. Will it even matter if all people are interested in is the acreage?

 

[ultrarunner]

As for selling... Spotlessly Clean in and out, top to bottom...

Little things that don't cost much are making sure everything works... doors, locks, cabinets, fixtures, window screens, caulking, etc...

Fresh neutral paint is often the biggest bang for the buck plus curb appeal...

Major item if you are spending is a good roof... seen to many sales collapse after roof reports.

In my area we have a huge Asian population and granny units do sell homes because of extended family obligations...

It really comes down to your market...

You can have the most run down shack but windows should sparkle clean...

Also important to smell clean!

 

[Steppenwolfe]

We just sold our cabin we bought 4 years ago. We paid $97 per sq ft. The loft bedroom had no shower in the bath. There was a huge bathroom with shower on the main floor with no bedroom or dining room. The downstairs daylight basement was chopped up into 3 rooms. No washer dryer hookup. We added a shower to the loft, got rid of the main bath and moved the kitchen adding a great eat in dining area; then opened up the entire downstairs to a master suite with full bathroom, double french doors to the outside, and an apt washer dryer in a closet. We sold for $170 per sq ft. The realtor said he never has had a property as clean, organised, and showed as nice as ours in 30 years. Put 50 K into the reno and walked with 71 K profit.

 

[GeneV]

Well we're on our 7th house now, and we also flipped a few properties as well. I could safely say that nearly everybody wants a master bath, whereas those who are looking for an in-law suite are a select group. So, if I was aiming for max universal appeal to buyers...master bath.

 

[ultrarunner]

One of the last homes I sold was a split level with a ground level play room with shower and a small wet bar.

Added a 24 wide range and micro and an upstairs laundry and had a second unit for under 2k in materials...

Wish I could say it was an original idea but other homes had added stoves... the second upstairs laundry was my idea to fully separate the units...

Sold immediately to an Asian family...

 

[GeneV]

One of the last homes I sold was a split level with a ground level play room with shower and a small wet bar.

Added a 24 wide range and micro and an upstairs laundry and had a second unit for under 2k in materials...

Wish I could say it was an original idea but other homes had added stoves... the second upstairs laundry was my idea to fully separate the units...

Sold immediately to an Asian family...

Yup, my wife's aunt has that setup exactly in a split-level. She downstairs, full suite with kitchen and all, and separate entrance. Her daughter/husband/kids are main floor and bedroom downstairs. If you have lots of immigrants in the area looking to buy, an in-law would be a draw, agree.

 

[LD1]

if your building it for yourself, build what you want now and enjoy it. If your going to sell, build it for the market.


Good luck

Best advice thus far.

IF you are planning on selling.....build it for the market in YOUR area.

If you are planning on keeping any length of time....just assume that what is "in" now is going to be outdated in the future when you do want to sell. So if you aint selling...build it how you want it and enjoy it