Q: Should I renovate my existing guest house or start with new construction?

Our property in San Mateo, CA currently has an old rented out in-law unit. Problem is, it is old and needs some serious updating. Our tenants have given us 30 days notice of their intent to leave. Now we are faced with the decision to renovate or start from scratch. How much value will renovating save us? Will new construction warrant a higher rent value? We need advice from Realtors and contractors for a better understanding of where to start.

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