One in-law suite that I built for an accomplished realtor
worked extremely well. A nenowned realtor had her elderly father
in law needing care. She said that a nursing home would cost a
minimum of $50,000 per year. She asked the cost of an addition to
be attached to the rear of their residence with a small kitchen,
dining room, living room, bath, and bedroom with a private
entrance and deck. I priced it out at $58,000. Only $8,000 more
than the nursing home alternative, but giving them the value of
the addition to both use as equity and the value for sale. After
three years of use and convenience, she decided to sell and move
to their retirement home down south. The father in law saved over
$150,000 with an outlay of $58,000. The house sold for an
additional $72,000 because of the addition. $150,000 plus $72,000
minus the $58,000 cost equalled a net gain of $164,000. A great
investment!
Additions, renovations and 2 story conversions are very
profitable investment projects that can be used for expanding
families or a much desired improvement and then can add the cost
of that project to the value of their home, possibly for sale.
Completed additions and renovations can increase the existing
value of the residence for collateral, loans or re-sale.