Sell the House or Build a Garage

Shank

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Sorry for the drawn out post but this is a significant issue for me as of late. I've lived in my house since 2019, I bought it right out of college. The house is fine, was affordable and really the only well built option at the time. The neighborhood is quiet, clean, and the house is all we need, maybe not quite what we want.

As things should progress I've gotten married which has certainly helped financially as well as gotten some raises. This house would likely sell for about $40,000 more than I paid for it (maybe more but being realistic). The house isn't my ideal place to be but man is it cheap and allows me to spend more on fun things. Property is only 1/2 Acre. I certainly want more property and I need a garage. I am currently in the middle of a kitchen remodel and plan to add a second bath in the basement.

The issue I am having is that the existing garage is 28x24 and the floor is beyond shot. I could redo the floor but the larger issue is it seems the foundation was not put below frost line and is quite bad (not worried about falling - but certainly not ideal). I currently have (6) cars (looking to off (1), really should get rid of all and get down to two daily drivers but that's another story...).

With owning a fleet of vehicles also comes maintenance. Currently I have to work on stuff in my driveway or at my brother's house. While this is doable it is getting quite old.

I also have some constraints to deal with - for whatever dumb reason our township adopted a zoning policy (we are a city of 16k with a bunch of farm land). While I think it's ridiculous it is what I have to deal with. My existing garage is nearing the maximum detached square footage. The workaround is there is basically no limit to attached garages and covered walkways count as attached. I think a pergola may even work as well.

I wanted to attach a 28' x 60' to the house. The issue with this is that I have to reside and reroof my house to do that. If I'm doing that I may want to consider windows as well. Financially this is not feasible for me (sure I could get a loan but do I really want to buy $60-80,000 into this house).

Solution 2 is to build something as shown below - a 28' x 40' but this will put me rather close to my existing garage - I need to verify but I am anticipating 16-18' away. Fortunately the existing would be used as storage only - mower, fourwheeler, project car. This also gives me the option to tear down in the future and add on to the new garage. I could possibly go another 8' which would make storing (tightly in winter time) 4 cars way more feasible but then it will look quite goofy. I would do a room in attic which would help a lot with storage.

I don't think I will quite have the cash to do this and I am quite anti-loan as of late but I am really torn what to do here. Basically I am considering financing a chunk of the garage or selling and paying over double what this house cost at a worse interest rate for something that has a garage and more property.

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You have several options.

What about repairing and expanding the existing garage? If you opt to sell the house, the current state of the garage will hurt the value. I would at least get a professional opinion and estimate on that option.

Tear down the existing garage and put up a metal building. May as well build it for a lift and a shop.

Pour a slab and put up a tall carport that can be converted to a garage later if desired.

Use this house as a rental and buy a house/garage/property that is exactly what you want.

Downsize the fleet. I have 4 vehicles and a motorhome. I want to downsize but am just not quite ready to let anything go.
 
You have several options.

What about repairing and expanding the existing garage? If you opt to sell the house, the current state of the garage will hurt the value. I would at least get a professional opinion and estimate on that option.

Tear down the existing garage and put up a metal building. May as well build it for a lift and a shop.

Pour a slab and put up a tall carport that can be converted to a garage later if desired.

Use this house as a rental and buy a house/garage/property that is exactly what you want.

Downsize the fleet. I have 4 vehicles and a motorhome. I want to downsize but am just not quite ready to let anything go.

Unfortunately I am limited to 900 sqft of detached garage. I am not super far from this. My brother is a contractor and I know what it will take to repair, it simply isn’t worth it. If anything I’d build the new and tear down existing if I went to sell.

i am thinking 12’ ceilings in this as is to allow for a lift if I want to. It could even be a metal building.

Rental is an option and is likely what I would do if I bought another house. I’d probably be nearly 3x the house payment on what I want though- or roughly 1.5 years of financing the garage at the payment difference.


Having a project car, LJ, and Duramax that all sit plus 3 daily drivers isn’t exactly necessary but….
 
Putting up that new garage will take up a ton of property, might make it less attractive to sell especially to a family with kids. I would see what it takes to fix the floor and put in at least 1 - 4 post lift. They don't need near the same PSI for the concrete as a 2 post lift.
 
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Putting up that new garage will take up a ton of property, might make it less attractive to sell especially to a family with kids. I would see what it takes to fix the floor and put in at least 1 - 4 post lift. They don't need near the same PSI for the concrete as a 2 post lift.

Unfortunately that will mean underpinning and redoing foundation plus raising trusses to fit a lift. It’s 8’ ceiling in there.
 
yeah that sucks. Moving sounds like the best option, unfortunately the increase in expenses will give your fun budget quite the hit for a bunch of years.

Either way is a fairly no-win situation it seems.
 
Do you have a mortgage? I would think your interest rate would be much lower than the current rates.
Selling and buying another house, does the current inventory have the shed/garage you would want or would you still have to build it?
 
Do you have a mortgage? I would think your interest rate would be much lower than the current rates.
Selling and buying another house, does the current inventory have the shed/garage you would want or would you still have to build it?

Yes mortgage and yes quite a bit lower than current.

Sometimes yes, but likely one every 2-6 months pops up that would satisfy the need, plus, a lot of time's they are double or more and aren't my ideal home anyway....

Realistically the plan is/was to build a house at some point but that's at least 5-10 years away.
 
IMO, take care of your financial health first. If your house suits your needs, why sell and go further into long term debt because of your car hobby?

Are you limited to a 900sf footprint or 900sf total?

Rebuilding what you have may be the best option. A 30x30x14 metal building runs under 15k for the shell. 2 4-post lifts will give you storage for 4 vehicles and a nice shop area.

Pour the slab, run the utilities and put the shell up for under 30k and finish out the inside as funds permit.
 
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From what I'm reading, I think first you need to decide if you will be staying or selling in the next 5-10 years. If for sure staying, then find out what you are allowed to have and either repair and expand the existing building, or raze and build a new one to your spec.

If selling, only fix what needs to be fixed. A $40,000 garage outback will not provide anything near $40,000 of contributory value to the real estate, i.e. you would just be pissing money away. That bathroom in the basement won't add anything significant either, but that's a different topic. If selling in the near future, buy a metal carport/shed/building on a gravel pad, that way it can be used now and disassembled and moved when you move.
 
IMO, take care of your financial health first. If your house suits your needs, why sell and go further into long term debt because of your car hobby?

Are you limited to a 900sf footprint or 900sf total?

Rebuilding what you have may be the best option. A 30x30x14 metal building runs under 15k for the shell. 2 4-post lifts will give you storage for 4 vehicles and a nice shop area.

Pour the slab, run the utilities and put the shell up for under 30k and finish out the inside as funds permit.

900sf regardless of height and single story if detached. I'm saving at a rate currently that I could almost complete a building cash next summer plus finish my kitchen. This is on top of 401k's and IRA savings.

A single detached could be feasible but in reality it is no extra to keep the existing at that point.
 
From what I'm reading, I think first you need to decide if you will be staying or selling in the next 5-10 years. If for sure staying, then find out what you are allowed to have and either repair and expand the existing building, or raze and build a new one to your spec.

If selling, only fix what needs to be fixed. A $40,000 garage outback will not provide anything near $40,000 of contributory value to the real estate, i.e. you would just be pissing money away. That bathroom in the basement won't add anything significant either, but that's a different topic. If selling in the near future, buy a metal carport/shed/building on a gravel pad, that way it can be used now and disassembled and moved when you move.

I can't imagine leaving sooner than 5 years simply based on interest rates and inflated property values. I would like to but I don't see spending $350+k on a house.

Basement bathroom is a necessity to stay for anything more than another year and realistically will be a $4,000 or so expense with me doing all the labor.
 
Basement bathroom is a necessity to stay for anything more than another year and realistically will be a $4,000 or so expense with me doing all the labor.

If you can do it that cheap, it's worth it.

I can't imagine leaving sooner than 5 years simply based on interest rates and inflated property values. I would like to but I don't see spending $350+k on a house.

Lots can happen in the market over 5 years. I think the next two will be something to pay attention to as it sounds like you truly want to move. Think about that metal building idea I posted. Those things can be assembled or disassembled in a day.
 
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@Shank

Interest rates are quite elevated over your 2019 rate and house prices are still high (worst of both worlds). I'd stay, ditch some of the fleet, construct a metal building for a shop (or the metal carport idea mentioned above) and continue to enjoy financial freedom in these unstable times.
 
@Shank

Interest rates are quite elevated over your 2019 rate and house prices are still high (worst of both worlds). I'd stay, ditch some of the fleet, construct a metal building for a shop (or the metal carport idea mentioned above) and continue to enjoy financial freedom in these unstable times.

Another factor is I have a friend currently storing the car, my Bridgeport, a mower, and a Willys MB engine for $100 a month too....

I am definitely willing to have to move cars out of work shop to work so that may be the most feasible. The unfortunate side is if I ditch some of the fleet I am going to have to buy a newer truck to replace 2-3 of them. I currently have the Duramax as a tow/haul only vehicle which could make great financial sense if I don't have to buy another truck for 20 years.
 
I had my house built in 2018 for 162k and have put another 7k into it. Current value is 240k.

I could not replace this house anywhere I would like to live for under 400k.

Having crunched the numbers to death multiple times, I would clear 220k out of this house and have to spend another 180k for the same house in a different location + moving expenses.

I would end up without a mortgage and no savings, living check to check or having a mortgage and making a house payment the rest of my life.

It's easier to modify my lifestyle vs wreck my finances.
 
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Are you upgrading your home out of your neighborhood? Something to think of for resale. The more money you pour into a house you really need your local homes to be equivalent if you hope to get your money back when selling.
 
Are you upgrading your home out of your neighborhood? Something to think of for resale. The more money you pour into a house you really need your local homes to be equivalent if you hope to get your money back when selling.

Not really. It'll be one of the nicer ones but not by far. Neighbor next door just poured a ton into theirs.
 
I bought my house in 2011 because it was a smoking deal. 5 years ago, I built a 24x45 garage. I have just under 2 acres and may buy another 1.5 acres next to mine. However, I'm in a position similar to yours where I not only need more garage, I need more house. I also want 20+ acres.

My plan is to finish fixing up the house and, as much as I hate to, live with my current situation for the next 3-5yrs. At that time, I'll be able to sell (at a serious profit) and hopefully interest rates will be a little more normal and I can find the property I want.

Buying the land beside me will add to my resale value and make it stand out over area comps. Finishing my remodel will bring the house to a little more modern look and add convenience, while addressing some issues that existed when I bought it. Outside of that, I don't intend to sink any more money into this property because it still won't meet my needs and I won't see a return on the investment.

I say all of that to basically say: you need to evaluate your specific needs, wants, and future plans. Be 100% honest with yourself. Don't throw money at something that won't benefit you in the long run or just to "almost" fill a need/desire. In the end, you'll be down whatever money you threw at it and still not have exactly what you wanted.