How much is my guest house worth?
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?