Family of 3 downsizing our lives and moving into a garage

[Marvel2017]

So my wife and I married a few years ago-we're approx. 40YO. We each had our own house. I sold mine and moved into hers which is in a pretty cool area of town about half mile from the city center. The area is pretty hot with a lot of "infill"/density increase building going on, I honestly was getting a little tired of the building/noise, etc of living in the house so figured we would rent out the house and move to the suburbs because the rental income from the house more than pays for the suburb house. WELL, we've lived in the 'burbs for about a year and we like it but we both feel like a 2,700sq ft house is a bit much for our family of 3. Wish I had come up with this idea before moving but honestly don't think I would have been able to get my wife onboard before moving to our suburb house and watching the Netflix show "Tiny" about the tiny house movement, living with less, minimalist, etc etc and realizing we spent too much time dealing with "stuff" in our lives. The deal with our old house that is in the city is that it has a 550sqft garage that is actually a pretty nice garage (14' ceilings, insulated, aethetically pleasing, gets lots of comments-most people seeing it from the street think it's a studio of some kind. I found that as a rental tenants were not willing to pay much more for the garage to be included in the rental so I actually have full use of the garage now because I did not write that into the contract-I use it exclusively for storing car projects I work on (which I'm giving up now because I dont have time and the opportunity "cost" is too high). There are off-street parking spots for the tenants as well as on-street parking. People living in the city dont really expect to have a garage to park in really.

Sooo after watching "Tiny" the thought came into my head "Why don't we build out the garage and live in there"-since it is essentially a "free" space since I was only using it for storage and we could not get much rental income from it. Plus tiny houses have not really caught on in our city just yet. And the property is zoned so that I can live in the garage legally. So this is what our plan is. We've been selling most of our "stuff"-I had FIVE bicycles, 3 flat screen TVs, etc etc. We are getting down to the bare minimum. The garage is about 60 feet from the house directly behind the main house with a alley behind for accessing the off street parking so we plan to split the yard and make it like two separate "properties". I figure the property tax and insurance will go up a little but still less than having a full separate residence. Plus I'll be close (techncally in the backyard haha) so it will be easier on me to maintain and watch the main rental property.

We have an 18 month old so this is a big driver (as well as my wife not working so single income). Also, my plan is to setup the "garage" in such a way that we can vacation rental by owner our living space for two large events that happen downtown every year and go on vacation at that time so we'll basically subsidize our vacation with the rental income. The city we live in is a pretty desirable travel destination as well so basically any weekend we go out of town we can probably have someone rent it from us VRBO.

Anyway, someone directed me to this site and my wife and I have enjoyed reading some of the suggestions and look forward to learning more ways of saving money, living frugally, etc!

[Calvawt]

That sounds like an interesting plan.  My first thought was what about a bathroom.  Keep us updated on the project.


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[gimp]

That's a pretty hardcore idea. I would probably look into what makes a living space "up to code" - they're generally pretty good ideas about anywhere you'd want to live. Plumbing, electricity, kitchen, separate rooms, big devices like fridge / washing machine / etc, proper egress... making the place not have rodents and bugs as garages tend to...

That, and getting your wife on board will probably be quite a challenge.

But if you can do it, you'd be saving a pretty penny. Or earning.

With all that said, you might find a better return on your money if you live in a small house (a real house), sell the big house, and invest the difference into the market (or into actual rentals). Actual rentals tend to be more profitable than renting out a house you own, especially a big house in the burbs.

[The Architect]

Look into your codes before splitting your lot - you might be able to put a 2nd unit in without any issues at all. Some jurisdictions allow for a studio-2nd unit on a main property.

[frugalnacho]

I lived in a garage for about a year before purchasing my house.  It had no running water and no heat though.  It was my parent's garage so I had full use of the facilities in the house.  I used kerosene heat to keep the temp above freezing (and never ran in with the door closed).   Usually I just covered myself in layers and layers of clothing and blankets to keep warm.   The gf didn't like it very much (but she liked the privacy it offered).

[Marvel2017]

Got wife onboard, she is a "sustainability" type of person anyway and when I said if we do the garage thing we'll be in a MUCH better financial position she was in. And we want to raise our daughter outside of the normal "consumerism"/American way.

The main house on the property is our "rental income house", some of the highest rents in the downtown area (which is why I had come up with the original idea of renting out the city property and living in the suburbs where it's about half the cost to live. We'll sell the suburb house most likely, may keep it as a rental dont know yet.

Got it cleared with codes, the property is zoned appropriately for what we want to do luckily. Oh, it will be a nice "garage" with full plumbing and kitchen. HVAC. One (very well sound insulated bathroom haha). Adding windows high up to bring light into the space. Basically like a studio apartment but using tiny house principles to try to integrate at least one enclosed "bedroom" (for privacy) which will probably be lofted above the bathroom with ladder access. We'll build the kitchen and bath on the side of the house where the sewer runs to minimize utility runs (it's on a concrete slab so to minimize cutting into slab as well). Basically since it's in such a hot and "rentable" neighborhood we will build it to a certain "standard" so as to maximize rental income potential because we also have dreams of travelling out of the country when our daughter is older so we'll rent both properties while we're gone.

pic of garage:

[James]

Sounds like a great idea with very little down side, since even if you don't live in the space long term you can rent it out. Looking forward to hearing how it goes!

[Eric]

Pretty badass!  That's a great idea.

[lackofstache]

Good luck! It seems like a great option in your situation.

[EvenKeeled]

I'm envious! But really, smart thinking on your part, and great work doing your homework on the zoning and such. Sounds like a fantastic setup!

[Thegoblinchief]

Code letting you do it is a major win. I'll be interested to see updates if you provide them :)

[MikeBear]

That's awesome! We've had some people do that around here, but slightly different. They built an apartment ON TOP OF the garage, (basically a second-story) and still use the garage as a garage. Make sure you get it setup with separate metered utilities if at all possible! You don't want to have to pay the utilities bill for your renters. Conversely, they don't want to pay your bill.

The hardest part for anybody thinking of this, is making sure your zoning allows for it. That's usually the kicker for most places, as they'd never allow it.

Your greatest issue may be that since you live on the same property as your renter, they may take that as permission to drive you nuts on every tiny little thing that even seems to need work. Such as when a bumble-bee flies through the house, or replacing a single burned out light-bulb. Make sure you place your boundaries with them right away. Obviously you want them to let you know when something important really needs maintenance, but you don't want to be bothered every other day for tiny things they should handle themselves.

[farmstache]

Love love love this!

Great idea, great tiny house (not so tiny, really, if it'll be like 600sqf), and beautiful neighborhood.

Good luck and keep us posted! I'd love to see internal pics to check out your floorplan if you don't mind later on!

[gimp]

Sir, that is not a garage, it is a porch with a little bit of cover.

But seriously, that is really awesome. Do it!

[Cherry Lane]

I have zoning envy!

I live in a house that is too big for me, with a detached garage.  I so want to build an apartment as a second story to the garage, live in that and rent out the house, but my city does not allow for accessory dwelling units.

[VirginiaBob]

A garage?  That is like a palace compared to my refrigerator box.  Slacker!  Lol- just kidding.

[RyanAtTanagra]

Thinking outside the box.  This is how it's done.  Love it.

[Marvel2017]

Yeah, the close proximity to renters of the main house could be an issue. But I do have written into the contract that tenants are responsible for repairs under $150 to keep them from calling me about small things. So far it's worked out well. Another plus is that my company is relocating their headquarters about 3/4 mile from the "garage" - so we're going to try to be a one car family since now I mainly use my car just to get back and forth from work. I'll keep this thread updated with progress!

[eyePod]

tenants are responsible for repairs under $150 to keep them from calling me about small things. So far it's worked out well.

I can't believe people say "ok" to that. We never would have said yes to that. Lived in apartment complexes and a condo owned by one person. If something broke, I'd text the landlord, let him know I could replace it for $50 (or whatever it cost), and then I'd scan the actual receipt of the item and subtract that from my rent that month. I didn't mind doing the work but I was not going to pay for the parts!

[VirginiaBob]

tenants are responsible for repairs under $150 to keep them from calling me about small things. So far it's worked out well.

I can't believe people say "ok" to that. We never would have said yes to that. Lived in apartment complexes and a condo owned by one person. If something broke, I'd text the landlord, let him know I could replace it for $50 (or whatever it cost), and then I'd scan the actual receipt of the item and subtract that from my rent that month. I didn't mind doing the work but I was not going to pay for the parts!

yea, i was thinking that was strange too.  What I would be most concerned about would be what repairs are they not doing.  Leaky pipe in the basement costs $150 - ah forget it, just let it leak and damage the house.  It isn't really ours anyways.

[Marvel2017]

I specify except where damage to the house is likely to occur if not fixed such as water leaks, etc. I also don't apply this policy to the appliances or HVAC. I've found it a good way to keep tenants from calling me about changing light bulbs, toilet paper holder that falls off, etc.

[totoro]

We did this and live in the converted two-story 1400 square foot garage aka carriage house.  Your plan is great.

[falcondisruptor]

Your plan sounds great!  Please post pictures when you've got everything setup!

[Marvel2017]

Update: We are at "Phase I" of our downsize. We decided to rent out our 2,200 sq ft house and found a great tenant and got a monthly rent higher than we anticipated-AND the tenant offered to help pay for the bonus room finishing because they would like to use the space so I told him we can talk more about that early in the year. We've been selling off things like crazy and we are now living in a 650sqft 1 BR apartment that is a mile from my work (so I've been walking it-at night with traffic it is FASTER FOR ME TO WALK THAN TO DRIVE if you can believe that). We are still in the design phase of our garage build out, which should be completed in 8 months, then we'll move in at that time. For now, the small apartment has been good for us to learn the nuances of small spaces and this will help us tweak the design of our garage in relation to layout and storage. We are already saving a good deal by living in the small space even though we're renting, but it's been 30 degrees outside and because our apt is on the 4th floor and new and well insulated we haven't even had our heat on and the lowest it gets in the apt is 71 degrees and during the day is 75. So we'll probably save about 200/month just on heat!

[Sofa King]

Your plan sounds great!  Please post pictures when you've got everything setup!

I concur!

[Neustache]

Mostly commenting to follow.  I love this thread!

[arebelspy]

Love it!  Keep us updated, with pictures if you're willing!  :)

[zinnie]

This is a really interesting idea! I will also be following this thread and hope you post pictures.

[fartface]

My mom has a 600 square foot studio apartment above her boyfriend's garage. He lives in the main house with his annoying teenage sons/their girlfriends/dogs, etc. This gives her her own space so to speak -- especially when we come to visit (my family of five).

They finished the place off beautifully: "beetle-kill" pine boards on the ceiling - hardwood floors - even a gas fireplace with a mantle and fieldstone! She's got a partial partition between her kitchen/bed. There's a futon and TV --desk and chair + broom closet. She's got a full bathroom and additional walk-in closet with the hot water heater in it.

When we visit - my husband and I sleep on her queen bed, two kids on the futon and one kid sleeps on the couch in the BF's "main house".

I often tell my DH that this arrangement would be perfect for us when our kids are out the nest. Not sure about having a toddler in there; I'd give you props if you can pull it off. Very mustachian indeed.

[mozar]

Please contact Kirsten Dirksen so she can interview you.

[Marvel2017]

Posting an update. Anticipated move in is this August. In planning stage now, working on plans for builder. Build starts in April!

Our blog:
http://tinyminimalliving.blogspot.com/

[partgypsy]

I think this sounds like a really good idea. The only downsize is privacy once the little one grows up. Perhaps if raised that way wouldn't even notice, or could partition off a corner as a small bedroom once the child desires their own room. My preference is to keep it simple and sell the suburban house.

Not as extreme as you, but as we are walking distance from a university, we get both postcards and emails about people looking to either buy in our neighborhood, or lease for a year (visiting professors). They ruled our neighborhood high density, and the university affiliated housing, the houses have seperate garages with loft apartments above them, so they can rent to students.
I've thought it may actually be more cost-effective once the kids are grown to move to a similar house but in a less popular neighborhood, and keep our original house and have the rental costs pay for the other home's mortgage (A house like ours would make more in rent than what we are paying in mortgage/taxes/insurance).   

[bacchi]

utgrad, what's the roof height over the master bedroom? I'm going in tomorrow to talk to the city (again) about a garage apt remodel. It already has a loft but maybe the roof can be raised and the loft can be enclosed.

[Marvel2017]

utgrad, what's the roof height over the master bedroom? I'm going in tomorrow to talk to the city (again) about a garage apt remodel. It already has a loft but maybe the roof can be raised and the loft can be enclosed.

Municipalities may differ, but in ours a "bedroom" technically has to have a 7' ceiling height. So rooms directly on the floor would have this height. "Areas" above this would be considered "storage" and don't have to meet the 7' requirement. Our bed will technically be in the storage area above the 7' rooms because we are only using them for sleeping by design. We are working within our existing space, whereas if you are open to raising your roof can make the rooms full height according to whatever you local code may be.

[jamminjimmy]

UtGrad,

Just saw this.  It's awesome that you are creative enough to think of this!  Great idea.  100% upside...  If you like it- perfect way to simplify your lifestyle.  If you don't like it----  easier to rent now anyways...  win-win... 

thanks for sharing!

Jimmy

[mrfilthyrich]

I like the blog!  Looking forward to following along with all of the progress.  Remember, lots of photos!

[CanuckExpat]

Glad I came across this. We had been looking into a garage conversion our self though more as temporary rental / guest suite, not to live in. I'm really interested to see your process, costs, etc

[NICE!]

Awesome stuff - I think you could generate some passive blog income off of this experience.