renting out a apartment

Back when we were househunting we specifically sought a place without a rental unit because we are unwilling to sacrifice privacy. Also, we figured if we had rental capabilities and opted not to rent the space, then we'd be incur too many visitors. We live on STT and my inlaws are visiting now but there's no room at our inn so they're staying at the Cinnamon Bay campground on STJ ! 😀

Which side of the island are you going to be on? Rents are cheaper west and sometimes north if the road is bad or it is hard to get to.

$200/sf to build? Seriously? STT or STX?

The numbers I've been given for the last few years (STT) are more in the $300+ range, with uncovered outdoor space more in the $150-200 range and covered outdoor patio space at ~$250.

The North side of STX, good paved road by Salt River.

Two different contractors have told me it could be done for around $200 sq ft. I know it will run higher than expected, but then I plan on doing quite a bit of the finish work myself, and a contractor friend has said that he would line me up with some of his subs.

What I'm trying for figure out is it worth the extra money, since it would take years to recoup the investment. even if the rent was $1500 / mo. it would almost 8 years.

Look at the resale potential as well as the rent/recoup question. Would it help (if you had to unload the property )later down the road? A rental unit is often touted to potential buyers as a great way to offset the mortgage payments!!! Just a thought.

Terry
It sounds like you are trying to use real estate on stx as a short term investment. When you talk about "recouping" money spent you are being unrealistic. Over the past 24 months the real estate on stx has inflated a great deal and in my opinion has temporarily run it's course. The only people who had short term gains were able to flip an existing house during the hot market.

So, my advice is to treat your house building as a long term project and assume that apartment rent money will not recoup your cash investment. It more than likely will only lessen your regular expenses.

Good luck on building for $200 a foot. Even with your sweat equity you will be hard pressed (imho) to have a livable house for that kind of money.

Wait. Alexandra has something to say. lol

When I was referring to recouping the money, it was meant as for the extra $140K out or just build a smaller home and not put out that money.

I figure that when we do move down there, we would likely only be there 10 years. We are in great health now, but 10 years from now who knows. Unless the healh care improves a lot, at age 72 one usually needs more and better health care.

The resale end of it is probably right. But then I think you are looking at a different type of client. ??
That is something I do want to talk with Alexandra about.

I'm open for more feed back.