Building a garage over apartment?

[spacepirate]

Hey guys,

I own a small 3 bedroom home in Los Angeles and I'm zoned R2 which means I can put a second dwelling on the property. Currently I have a small 16x16 detached garage and I would love to tear it down and have a new apartment over garage built. I've seen small (approx. 600 sq ft) apartments renting around $1000-1500.

The problem I have is the math. I'm trying to get general pricing for a construction project like this so see if it's a smart investment but don't know where to start.

I currently owe 300k and during my last appraisal about 8 months ago the home was valued at $450k.

I don't really want to pay an architect 6-8k to design the thing and then find out it cost too much to build. I've tried talking with contractors and no one wants to give a generic estimate.

My main goal is to offset some of my mortgage through the rental fees.

If anyone has done something like this or has any advice I'd love to hear for you!

[raustinss]

any general contractor should be able to give you a rough price per square ft ....finished of course . also look at garage blueprints online ,theres tons . approach a contractor with just a print off from the internet and ask is this a
50,000 dream or a 100,000 dream

[Build-It-Break-it]

I live in California to and I'm about to close on my house that has a studio type 800 square feet apartment build into the side of the shop in the rear of the house. It has kitchen, shower, sink, stove, microwave,central air/heating etc.

When I asked a few of my friends if they would rent something like that for around $800 a month they jumped on it. My mom is going to stay there but I was curious as to how much I could rent it for.

At $800 bucks it would drop my mortgage down to $1200 bucks which would be great (not possible right now due to me letting my mom stay with us so I can take care of her).

I think it's worth it to a point. Being a land lord and dealing with people's bad habits, guests that aren't yours, possible theft, constant repairs of the rental, etc etc might not be worth it just to make a "profit" that might end up costing more in the long run.

That said, I'd do it if I had the rental already built or I would see a return on investment within 6 years or less.

Id check contractors estimates and check permits to see what would be needed to make it habitable (windows, fire exits, etc). Also plan financially for the unexpected when walls are removed and repairs not estimated are needed.

Your money might be better spent investing in something else that wouldn't involve people living on your property and see a larger profit faster.

[rustomatic]

I've been mulling over buying a rent-able property about 2-3000 miles away. That's about as close as I want any stranger living on my property--this probably goes for my mother, too, but hey, I'm a terrible person. If you are serious, watch Pacific Heights. The king who invites strangers to live in his castle shall be quickly, if not disturbingly unseated.

[Vince@Meanstreets]

Originally Posted by rustomatic

I've been mulling over buying a rent-able property about 2-3000 miles away. That's about as close as I want any stranger living on my property--this probably goes for my mother, too, but hey, I'm a terrible person. If you are serious, watch Pacific Heights. The king who invites strangers to live in his castle shall be quickly, if not disturbingly unseated.

But that was San Francisco.....even the rats and cockroaches have squatters rights

There was a situation where a home owner has to pay a squatter $13K to leave.

[Vince@Meanstreets]

Originally Posted by Build-It-Break-it

I live in California to and I'm about to close on my house that has a studio type 800 square feet apartment build into the side of the shop in the rear of the house. It has kitchen, shower, sink, stove, microwave,central air/heating etc.

When I asked a few of my friends if they would rent something like that for around $800 a month they jumped on it. My mom is going to stay there but I was curious as to how much I could rent it for.

At $800 bucks it would drop my mortgage down to $1200 bucks which would be great (not possible right now due to me letting my mom stay with us so I can take care of her).

I think it's worth it to a point. Being a land lord and dealing with people's bad habits, guests that aren't yours, possible theft, constant repairs of the rental, etc etc might not be worth it just to make a "profit" that might end up costing more in the long run.

That said, I'd do it if I had the rental already built or I would see a return on investment within 6 years or less.

Id check contractors estimates and check permits to see what would be needed to make it habitable (windows, fire exits, etc). Also plan financially for the unexpected when walls are removed and repairs not estimated are needed.

Your money might be better spent investing in something else that wouldn't involve people living on your property and see a larger profit faster.

That would easily be $1850-2400 in the Bay Area.