After much thought and consideration, we decided to purchase the small house that is located in the lot next to our own home. It’s only a 1-bedroom, 1-bathroom bungalow/cottage, but the sell price was such that we have a decent budget to put some money into it…and maybe add some square footage to increase the value. We’re giving ourselves 6 months to make the necessary renovations to rent it out. Over the next 3 years, we plan on making upgrades throughout, as our budget allows.
The inside layout is charming and there is plenty of space for entertaining. It sits on a 50’W x 200’L lot and it’s nestled back a bit, so the front yard is quite large. It’s a cute cottage, but it needs some work. For starters, we have to replace the roof. Like the entire thing. The front porch slants backwards towards the house, which has caused some water damage along the 3 front windows on the side. Aside from that, it’s mostly cosmetic upgrades. Most projects we plan on tackling ourselves.
We’ve had a few people out to look at the roof to give us a quote and here is what we’re dealing with:
- Option 1: $8,000
- Repair the slope of the roof above the front porch so that it slopes away from the house
- Re-shingle the entire roof
- Option 2: $15,000
- Remove the enclosed porch on the back of the house (it has no concrete foundation, it’s just wood sitting on ground??)
- Raise the roof pitch to create a 2nd story
- Repair the front porch and re-shingle
If we go with Option 2, we would be increasing our long-term value (for re-sale) but we’d have to delay renting until we could budget in the repairs for inside (new appliances, etc.). It’s a good option since we have to do the entire roof anyways, it’s like, “now or never” kind of thinking, but at the same time it’s a challenge since we’re trying to keep the same overall look of the cottage. If we go with Option 1, we wouldn’t be able to add any square footage or extra bedrooms so, our resale value wouldn’t increase by much.
Would love to hear your feedback on what you think we should do?
Here are some photos of the interior space. The back story on this house is that it was originally a garage and it was converted to a home about 20 years ago. Because of this, there is little to no insulation and the electrical might need some servicing. Otherwise, it’s a very charming layout and has some potential. I welcome any advice and suggestions!
“Formal” Dining Room