Hi all, I'm a regular reader, but this is my first post. Here's what I'm considering - would love some thoughts:
I have a house in a very desirable vacation destination (summer months, and skiing in winter). The attached garage has been converted to a home office, and that's what I use it for. It has a sink so there's plumbing, and hardwood floors + skylights, so it's a nice, light space. My house rents out on Airbnb for around $1,000 per week, but to date I've only been renting it out when I'm not here (I have another place to stay in another state where I spend months out of the year for work). I don't really have anywhere else to stay in this town when the place is rented out - sometimes I stay with friends in their guest rooms, but it always feels like an imposition, especially since I have a dog.
If I put a small, simple bathroom in the studio, I could stay here while renting the place out on Airbnb. it would have the basics I need - my office (I work from home), sink, toilet, and shower. I already have a kettle and mini fridge, and a sleeper sofa. I could easily live in here for a week at a time - perhaps a week a month or so. I've had no problem filling the place when I open dates on Airbnb - at least during the summer and winter (fall and spring are quieter). For example, in January I made $3300 off Airbnb by renting out this place, but that was easy since I was out of town.
I got an estimate on installing a bathroom. It was from a very reputable contractor, who likes to give estimates on the high side so as to not go over them. He thought it would be close to $20,000 to put the bathroom in, possibly a bit lower but no less than $17,000. This would be with the appropriate permits from the city, so the second bathroom should add value to the house (the house is a 2 bed, 1 bath house, with a downstairs 2 bed 1 1/2 bath apartment that I rent out on an annual basis to long term tenants).
Is this a good idea?