Hi guys, I'm just wondering what would be a better option with one of my IPs Currently its a 4BR house in Campbelltown council renting for $440/week. There's about 615m2 and a frontage of 19m. Its zoned R2 and hence has the potential for a duplex. Here are the numbers. I'v never built a duplex before so am unsure there. Purchase price was $440K, and it's renting for $440 per week currently. If I build a granny flat for approx $100K, I'll have no loss of rent, and it would be valued at an easy $600K (being conservative) . Rent would be $350 a week (with increases over the years). It would be paid off in 5-6 years. Total cost:$540K; Total rent $790 per week. (not bad) If I subdivide and build a duplex, I have no idea how much this will cost. I could always sell one off (and pay CGT) but would prefer to keep both. Rent would be an easy $500-550 per week for each house. They would probably be valued at 600K? each. I don't even know If I can afford the cost to build it and keep both (or if the bank will lend me that amount) Alternatively, I could just build the granny flat now, and think about doing a duplex later down the track.