How much is my guest house worth?
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A couple years ago, my wife and I renovated a guest house on our property, and are now earning about $ 900/mo in rent, which gives us an extra $ 9,000 per year in pre-tax income. We are in the early stages of planning a move. Our regular house — assigning zero value to the guest house — would probably sell for $ 625,000. How much extra should we add to the asking price of the house to take into account the rental income from our guest house?
its easy look up to google check your area code and find which house suits you.
if it is a legal unit, then i would go with the rental amount per year multiple by say 7 to 10 depending on your area
I would say $ 700k-725k for both. If the guest house is at least 3br/1.5 bath, I may even suggest as high as $ 175k additional if it is in a very pricey neighborhood.
Good luck with it!