ADU on 4 unit CA

[Tony Cavalli]

Hey fellow investors! Has anyone completed and re-appraised/refi'd a property that they added an ADU on a small multifamily (2-4 units) in California? I have a deal where I want to do this but I'm concerned about how the bank and appraisal company will appraise the property. Based on GRM/Cap rate it should significantly increase the value of the property BUT its not a commercial property. I'm concerned they will lean more on the neighborhood sale comps vs the income because its a 4 unit (residential). Hmmmmm....