Turn Seperate Building Into Studio Apartment???

thedukeryan

OK so I got the idea from a guy at work to turn a separate building in my back yard into a small studio apartment. I live just a few blocks away from Kansas State University so there is always a demand for cheap rentals. It would be small but I'm guessing I could still get around $300 a month off of it. Maybe $325-$350 if I included a parking stall in the garage. I measured it all out and its right around 300 sq ft. I know thats small even for a studio but there are plenty of them. I know adding plumbing would be pricey along with everything else but as long as I kept everything basic I don't think I would break the bank. Maybe $10,000 all said and done?? Or am I dreaming. Currently the building is nothing more than a shell with a roof on it. Its in good shape but is unfinished on the inside other than a heater, ceiling light and a few wall jacks. I'm not real handy especially when it comes to electric and plumbing. I would probably hire a contractor to come in and do a lot of it. Do you guys think its possible???

I'mstill a newbe so be easy on me. Any advice or suggestions would be appreciate. Also any kinda of rough idea of pricing assuming I kept things real basic??

First attached pic is kind of what I'm thinking

Second attached pic is a somewhat to scale floor plan of the building currently

Last pic is of the actual build on the right hand side

Attached Thumbnails

     

MechanicalDVR

First thing is to check with the town and see the rules for rental unit such as this would be when finished. You may find it isn't possible or they have special requirements. You will need fire egress windows in a sleeping area right off the bat.

__________________
"Injustice anywhere is a threat to justice everywhere" mlk
100% Union and Proud of It

Mike Finley

Yeah, and that toilet will never fly with the building dept. You might want to consider turning it 90degrees counter clock wise and changing that shower to a neo angle one, and reduce your vanity from a 48 inch to a 36 inch one.

mickeyco

Where's the refrigerator?

New, more reasonable plan idea:

Attached Thumbnails

 

__________________
Some people climb mountains. I take out the trash. But we both do it for the same reason.

Grumpyplumber

I think Mickeyco is onto something, he forgot the regulation sized pool table though, horrendous oversight.

dirt diggler

oh, sorry ... no free estimates dude


again, paypal??

Michaeljp86

I doubt the inspectors would let this idea fly. Me and my dad have a building with 5 studio apartments in it and 2 1 bedroom apartments. You can put $2000 into one apt real easy when someone moves out. Figure $1200 for electric service, around 1000 to wire it. Then maybe 700 to plumb it not including sewer.

I dont think its worth it.

Grumpyplumber

You missed a zero.

747

I would stop until you verify with city you could get a occupancy permit. Or whatever they call it there in kansas. The legal rite to rent the property in accordance with city regulations on occupancy.

Yes. A college student only cares about cheap rent. A shower toliet sink small kitchen and a combo bedroom living room would fly. Look into day bed also known as a pulldown. Those have came a long way from yesterdays.

thedukeryan

Guys Like I said I'm a newbe so my floor plan is probably far from the best. Ive been getting off 12 hour shifts all week so its about the best I could come up with. The project is definitely still in the thinking stages. I'm pretty sure I can get the go ahead from the city. They seem to be turning everything into rentals around here. My friend managed to turn his single car garage into a studio and actually has no problem renting it out. Im guessing the sewage and plumbing is going to be the most costly but dont have a clue what a project like this would run. If I decide to actually take the project on I would like to keep everything real basic. Assuming I can get the go ahead to convert it into a rental and everything else do you guys think I could pull it off for under $10,000?? If I can keep it around $10,000 I think it would be worth while to me. Looking for expert advice here. What do you guys think? Also do you guys think I'm going to be stretching it to far with only 300 sq ft? I know there are lots out there but at the same time I don't want it to be a complete dump either.

mahlere

let's think financially...

say you can do this all for $10,000

say you can rent it for $350/month not including utilities

it will take you 28 months to get back your original investment. but this is college rentals, so you will rent it to one student for the 9 month school year, find a different tenant (maybe) for the 4 month summer season. Then like was said, each time one tenant moves out, some money is spent fixing issues for the new tenant...

you see where I'm going with this...pretty soon your payback balloons to 40 months or 50 months...after that it's only upkeep and maintenance.

don't forget though, at $350/month, you are bringing in $4200/yr (if you rent it every month) less insurance, taxes, maintenance, etc.

will it give you the financial gain you are hoping to get? or will it give you a burden and a nice place to sleep when your wife kicks you out of the house?

I will add this, if you could do all the work yourself, it would be a different story.

thedukeryan

I'm not looking at making a lot of $ off of the idea but even a couple hundred a month would be nice. I'm just recently out of school, single and paying the mortgage on my own. If I could re coupe even $200 a month to put towards my mortgage that would probably make it worth while. Ive dealt with rentals a lot through out my life. My dad is in real estate so I know they can be a pain but in the long run they can also be rewarding. Given the location of my house I would like to turn it completely into a rental in the next 5 years. I figure I can rent the house itself out as a 4 bedroom with current rent prices for about $1200-$1300. If I can add a extra unit that would add another $300-$350. This is with current rental prices. Since I graduated in 05 Ive seen rent go up about $25-$50 a month per bedroom. I figure in 5 years from now I could probably pull $1500 out of the house and $400-$425 out of a studio. As a whole this would let me bring in a decent amount of extra income. I know rentals seem to have a tendency of getting trashed but as long as you get a decent deposit, cosign and lease agreement you can usually get most if not all of your money back. My dad and grandpa started a real estate firm in the 70's which now has 20 some rentals. I would like to start small and eventually work my way up to this. I can see this as being kind of a starter project for me. As for doing the work myself. I'm quite comfortable doing sheet rock, framing, and things of that nature so I wouldn't have a problem doing some of it. Things like plumbing, electric I would be better off leaving to pros.

mahlere

as long as you can make the investment, in the long run you will win...but you will be putting cash out up front (unless you can refinance and take the money from there) and you won't see any extra money for awhile...

thedukeryan

Wouldn't any $ invested in it be considered tax deductible? If so that alone would help me out some wouldn't it. Either way it may suck the first year or so but eventually will get to the point where I should be able to turn a somewhat decent profit. I'm going to do some more research Monday and will let you guys know what I figure out. Feel free to keep suggestions and advice coming.

KentWhitten

that money you will be receiving is income and basing it on what you are earning now, you could cross over into another tax bracket which would negate almost any gain put into it. If you were doing it solely for the purpose of resale value, then you might have something there.

your drawing I think looks like you may have drawn the outside walls?? if so, then did you consider the thickness of the walls? I got to say that bathroom is small. We just did a condo project and the smallest was 598 sf and that was small. I have seen smaller yes, and maybe you will get something out of it. I just think you might be spinning your wheels. I don't see much income potential.

Somewhere you have to come up with the initial investment (your own money or loan from the bank) and if you put that money into a saving account, or invest it differently, then you would be in the same ballgame and not have a college age kid in your garage taking up a spot for your vehicle.

__________________
If you correct your mind, the rest of your life will fall into place ~Lao Tzu

Custom Cabinetry - Portland, Cape Elizabeth, Scarborough, Kennebunkport, Yarmouth, Falmouth, Cumberland, Ogunquit, Maine

Salmon Falls Cabinetry

Michaeljp86

I forgot about adding a underground waterline to the list so yeah $700 is to low.

thedukeryan

The measurements are from the inside but yeah it is pretty small. I kind of got the deminsions from the University owned studios which are roughly the same size. I cant remember exactly off the top of my head but I think they are 298 sq ft or something. The things are run down and small but being directly across the street from campus everyone one of them rents. As for the building I already have a two car garage that I dont even use and then theres the seperate fully enclosed building that just sits full of junk. It doesnt have a garage door or anything like that. Heres the floor plan for the University studio apartments.

Attached Images

 

K2

Put an ad on craigslist for your imaginary 300 ft. sq unit and see how many calls you get. In my area your unit and an ad in the paper and on CL would bring a hundred calls. If the city would allow it I'd go for it .... There are many many advantages to small units but that is another thread.

Grumpyplumber

$700 might get one fixture installed, if the guys cheap.

dirt diggler

then why in the hell are you even talking about it???

end of story