Hey everyone! My wife and I inherited a concrete house from the 40s that hasn't been updated since the 70s, and we live in a great area with low taxes. The highlight for us is a separate in-law suite above our garage that we currently rent out. My mother-in-law lives with us, but the suite is only a 1-bedroom, which is getting cramped with our medium-sized dog. Our tenant is moving out, and we're torn between remodeling the suite or tackling the main house first. Both places need a lot of work: poor insulation, old window unit ACs, sagging floors, and a leaky foundation that floods the basement when it rains. The suite lacks heat and hot water, which we pump from the main house. We're young, with no savings, decent jobs (around $150k income), but I'm worried about financing. Our aim is to convert the suite into a 2-bedroom and add a second floor to the house. Are these goals realistic? I'd appreciate any feedback! Thanks in advance!
2 Answers
It sounds like a big project, but since your house is already paid off, you should be able to look into a home equity loan. With your income, there’s a good chance a bank would lend you some money, especially if your renovation plan isn’t over the top. Just consider how much you really need for the repairs and make sure it’s realistic compared to what you can afford, especially since you’ve got some issues with the foundation. That’s definitely something banks factor in!
I'd recommend focusing on the main house first. It seems like it could become overwhelming and financially draining to do both at once. Plus, even if you can’t tackle the in-law suite right away, it could still be a rental in its current state. Just make sure you think about the logistic side of things since moving utilities around could be a pain if you start remodeling!