Talk to a realtor in your area who can give you hard numbers. However, I would have to say that the project is only worth doing if you are able to incorporate that half bath into a master suite and add a shower or tub/shower. Depending on what type of footings were dug for the garage, your project may require demolition of the garage and new footings dug before you can use the space for living quarters. If the realtor gives you an idea of the numbers on this as far as any gain in value to the home, you will then need to contact your local permits office and find out what type of permits and inspections you will need to go through to do this. Do not even think of doing it without, as it creates a big nightmare for you to have unpermitted work at any eventual sale time. Plus, lots of neighbors just live to turn you in to the codes people. Then your third stop is a structural engineer to be able to assess the scope of construction needed for the project. As previously mentioned, the foundation will need assessing, as will the existing walls and roofing structure's ability to be insulated to current code without affecting the required head height. It could be a really simple project, or it might not be. After you have gathered all of the above information, then it's time to develop a written scope of the project with all of the specs for the products that you want to use and the structural requirements of the engineer. Then you use that document to seek bids from contractors so that everyone is bidding on the same project with the same products. For a mid range master, expect costs to come in somewhere between 120-140K if you have to rebuild from the foundation up. If your foundation and existing walls will work, then you can probably shave off one half to one third of that amount. If you DIY everything, then maybe one half to one third off again. So, between 30K and 140K depending on what the reports say and how handy you are.

After the housing crash, in some areas, inspectors stopped including the lower level as gross living area and called it a basement because it's partly below grade. Some people ended up with houses worth a third or half (for split entries) as much as they had been. And some were unable to sell to anyone except cash buyers because many split entries have all the bedrooms on the lower level, so the houses suddenly had no bedrooms (because only rooms in the GLA get listed like that). Banks wouldn't issue mortgages. The language really only changed after Sandy, when so many people with lower level NYC brownstone flats got flooded. The value was discounted because they were no longer GLA-eligible spaces. I had a friend in DC with one of the half-underground condos split from s Georgetown town home who got screwed at the same time. Her condo's floor is 6" below grade. Guess who dug out the foundation of her split level? That would be me. (Yes, in my case, it was fine.) The language now has a clause allowing for partly below grade areas to be counted in GLA if it's customary for the area for similar structures. The Sandy thing was covered in The NY Times.

We are a new family so we are not even thinking of this as a “forever” home or not. It’s really our first home. It’s a semi 100+ year old home in downtown Toronto; master on the first floor is not an option. Walking 14ft to get to a bathroom is perfectly fine for us. Mobility isn’t an issue for us. My only concern is if we are limiting our privacy by having our master on the 2nd. Do the pros outweigh this con.

May Lee, I would put less weight on the opinions of the people here, and more into research on what off campus college rentals are like in your area. How large are the units, how large are the bedrooms, what are the rents per square foot being charged? Are rentals more commonly by the bedroom or for the entire unit? What is expected in kitchens and common areas? What sort of students choose to live in your neighborhoods? I would aim at attracting graduate students, as they are more likely to be focused on their studies, be quieter, cause less disturbances, and have a greater level of maturity, especially if the schools near you have programs in areas such as medical, law, or architecture. From my experience in being a college student at an urban campus within the last 10 years: 1. Almost all graduate students in most of the US choose to live off campus, unless they are international. Many undergraduate students if allowed would rather live off campus too, because on campus living often either means sharing a bedroom and a bathroom and very little privacy, or you or your parents have to spring for the overpriced on-campus apartment style units. Living off campus is almost always cheaper. 2. As a college student I would never rent a unit without appliances. Unless it's expected that I have my own mini-fridge, and then there has to be a place to put it. Honestly as an adult I would never rent a unit without appliances, but maybe that is a regional thing. In fact, don't allow a tenant to have a hot plate, or space heaters, or anything else that could be an electrical hazard. 3. Most college students that I knew, unless they were really tall had a twin bed or full size bed. Queen beds or larger are a pain to move around, which college students frequently do. I've also had many roughly 10x10 bedrooms and they have worked just fine. Sure, the bed either has to be in the corner or closer to the wall than usual, but only one person will be sleeping in there (another note, your lease should have limits on the number of nights that your tenants can have visitors). 4. That said, the bedrooms should absolutely be designed so that each can comfortably fit a desk in addition to a bed. If your closets are setup well enough, these rooms don't need to fit anything else large. A student might have a small bookshelf or dresser, but they likely won't come with too many clothes.Or if they do, they will need to find themselves a larger more expensive apartment (back to what I said above about knowing your local market). 5. If I am a student and I am on a budget, I will absolutely compromise for a smaller unit if that means that I can get it for less. I have lived in my share of studios and tiny bedrooms. If your space is actually a little smaller than the typical in your neighborhood, and you charge a little less for it, that may work to your advantage. 6. Your common area doesn't have to be huge. If it fits a table for 2 a sofa and a TV, you are all set. My experience with common areas and students is that they actually don't get used a ton. And making them larger just invites large gatherings, which may be disruptive to you upstairs. 7. Is the washer and dryer available to the renters to use as well. Having done it once, I would never again rent a unit without laundry in the building. No one wants to cart their clothes a few blocks to the local laundromat in the rain because that was the only day available to get it done. 8. A dishwasher is really nice to have, but I have rented many apartments both during and after college without them. This is another case where I would see what rentals in the neighborhood have. A couple thoughts on your latest plan: 1. The closet in bedroom 2 being 3' deep is just wasting space. I would make it a more standard 25-26" deep and give that space back to one of the bedrooms. 2. I would mirror the bathroom/closet design of bedroom 1 so that the closet is away from the door and can have a full width bifold door. That will make it more useful. 3. Rethink the shelf in bedroom #2. This should either be a small closet or cabinet facing out into the hall, or delete the stub wall next to it and make this a full height wider cabinet next to the vanity. 4. I second that the furnace as located in the garage is just asking to be hit and banged into, since it hangs out into the garage door. If you have a small car, are likely to always have a small car, and the average buyer in your city also has a small car I would make a dedicated utility closet at the end of one of the stalls, leaving the other side longer for larger vehicles. 5. Most importantly, I think the common area needs another revision. The kitchen is wasting space in the corner, and there isn't a great way to layout furniture in the rest of the space. Maybe there is a way to get the kitchen back on the wall by the stairs, except the refrigerator? I would do a 24" electric stove and 24" refrigerator/freezer combo with a 24"-30" lower cabinet for storage and workspace. If you don't have a dishwasher I would try to fit in a small double basin sink. Upper cabinets should be generous and extend to the ceiling if possible. Try to then get two opposite walls across from each other that are clear to place a sofa and TV.