Investing in real estate can pay off really well over time. Buying and holding properties means the possibility of equity. It also means that you can change up the real estate you own to suit your own needs. There are many other advantages that can be found in real estate investing. Under law, many types of profit earned on real estate are either lightly taxed or not taxed at all.
One of the best forms of real estate investing is adding a room. Adding a room is a great kind of investment. There are lots of ways you can put in an easy addition. If you own a home, you can add a room. Adding a room to rent out is incredibly easy. Many people are delighted to realize they have lots of space they are not using. These are spaces that can be converted with little effort. From the den to the basement and attic and garage, you’ll find it possible to put in a single room and start adding to your bottom line immediately.
Increase Home Value
One of the many things that adding a room does is to increase your home’s value. Buyers like more space. They appreciate having extra space to do as they like with when you resell your home. Even a single room can help you stand out from the competition and get your home sold faster. If you are renovating a home for sale that is not your primary residence, this can make things even easier for your tenants. More space means more rent and thus more income in your pocket.
Add a Room
When adding a room, it helps to think about where you want to add it and why. Have a close look at all areas of your existing home. If you have an older home, you’ll find it possible to take older space and expand them. If you are buying a new home, you can add in that extra space to help you generate the rental income you before the home is ready for you to move in. It’s all about using your existing home space well and using it to bring in the money you want from your investment.
Convert a Den
The den is one of those rooms that people sometimes use and sometimes avoid entirely each day. In many instances, the den is just an extra room that people don’t use very often. It might be where you keep all those extra things that don’t fit anywhere else. If you just use it for storage or only occasionally, you can put it to better use. Now is the time to think about revamping that part of your home. To turn it into a room you can rent out, put in a bed and a few amenities like a mini-fridge and extra desk. Then it’s time to welcome paying guests.
Finish Your Basement
The basement is a great place to put in an extra room. A basement can be finished or unfinished. If you have an unfinished basement, you can fix it up for a small fee. To rent it out, you’ll need to make sure it has at least one window and a closet. This will keep up to all national and local building codes. If you have a larger basement, consider making it a walk out basement. Adding a door to the outside and a full bath can preserve your privacy while generating additional income at the same time.
Update the Attic
Attics are often used for storage. An attic can also serve as that extra room you can use for more money. Make sure the attic has enough circulation. Air rises in the Arizona heat. You want to keep that part of your home cool for your guests. If you don’t have central air already, you can bring in an outside specialist to get it done there. The attic can be an ideal place to keep more than one room in the same space. Just make sure each room has a window and a separate egress.
Put in an Amish Barn
If you would prefer to keep the guests away from your main home, you can still add another room for paying guests. The Amish barn is a convenient and easy way to bring in space for all sorts of goals. An Amish barn can house your cars and keep them away from the heat. The Amish barn can also be used to add a garage with a second story. The upstairs spaces can be brought up to code with plumbing and electrical work. Then you can invite guests in to enjoy the space and add to your overall bottom line.
Creating Rental Income
Creating rental income is easier than ever. You can also choose to rent out each room in a space on an individual basis. For example, a series of studio apartments can be set up in one of your rental properties. Single rooms can be a good choice of rental income. If you are thinking about going this route, there are a few things you’ll want to take into consideration before you begin.
For example, you’ll want to make sure there’s enough kitchen and bathroom space. A single room that is updated and filled with bright and airy spaces is one that will attract tenants. It will also keep them here if the price is right. Little details like a fresh paint job and built-in storage spaces can help the renter feel at home. Bring in details like colors that tie it to the Arizona landscape in the area for even more delight.
Average Costs
Many people think about adding in a series of rooms but they’re unsure where to begin the process or how much it might cost. If you are having a personal home put up just for you, you can ask the builder to include that extra rental room.
If you are renovating an existing home, you can consider it part of an extra overall renovation. Updating the bathrooms and adding in a second room at the same time can save on costs. It can also make it easier to get the job done quickly. It can also reduce the disruption in your life if you choose to do it when you’re on vacation.
So Many Advantages
The average cost to renovate tends to be no more than a few thousand dollars from start to finish. If you have the skills to get it done on your own, you can save even more. A professional contractor will take your vision and get it done to your specifications.
All you might have to do is put in a window for added ventilation or add a door to the outside of your basement. This is a cost that can often be made up by that extra rental income in a year or even less. The room can remain there for as long as you like, continuing to generate that income you need to help pay your bills. A careful examination of your home’s potential will reveal many ways to add in one room.
If you are interested in investing in real estate and are just starting out, The Kay-Grant Group has put together a more comprehensive guide to help you get started. If you happen to be looking in the Phoenix area they are one of the leading real estate experts that can help you find the right fit.
Nina Smith 