Keep the main house as is; build ground-ups in the backyard.
Main House (3 Bed/2 Bath): $3,000
Ground up 1 (3 Bed/2 Bath): $2,400
Attached to Ground-Up 1 (3 Bed/2 Bath): $2,400
Ground-Up 2 (3 Bed/2 Bath): $2,400
Projected Total Monthly Rent Roll: $10,200
Targeted All-In Costs: $1,025,000 to $1,125,000
Projected Construction Cost: $450,000 to $550,000
Projected After-Construction Value: $1,300,000 to $1,400,000
Projected Total Equity: $520,000 to $560,000