Worth extending house

[svalkama]

We bought an old 1940s home at a prime location in Kelowna a couple of days ago. As we are doing our due diligence we are wondering if it is worth extending a house. (other option is building a carriage house)

The living room and kitchen are small so we wanted to open it up and extend, to attract a better rent and tenant profile.

Does anyone have any insights into ROI being worth the time and effort, in general?

We don't know the cost yet which is likely the key to ROI evaluations. If someone has any recommended contractors in Kelowna let me know

Thank you!
Sami

 

[Cory Sperle]

Is the house in Kelowna south? I have not heard many investors adding an addition for ROI purposes. There are many lots in Kelowna south where they have built a carriage house in the back, and I thought of this too as being close to Okanagan College and the beach, ideal for students in winter and vacation rentals in summer.

 

[svalkama]

Thanks Cory.
Yes, this is Okanagan South, close to hospital and lake (plus Okanagan College).
You are correct, the ROI is nowhere reasonable to make the additions worthwhile. Carriage house is the best choice.

 

[Cory Sperle]

Good pickup, would love to take a look when I get back to town