ARV for ADU project in San Diego

[David Rutledge]

Good afternoon,

I was not sure where to post this question so my apologies if this is in the wrong place.

I am looking at some opportunities to buy an existing duplex or sfr in an RM area with the intention to build an additional duplex.

What I am most concerned about is the ARV value appraising for lower than what it cost us to build. It seems these valuations can be all over the place.

I would like to get some opinions from others who may have done this. Would a duplex that effectively becomes a 4plex receive a favorable valuation or would it be considered an "accessory" and thus not be valued at what we put into it. This is what I am seeing a lot of when combing through some older posts.

Thanks in advance

David