Western Washington kitsap , mason county investing

[Jonathan Gragg]

I currently live in a pretty hot market and getting more expensive by the day most houses exceed $325,000 I don't think that's good rental investment although I'm brand new to this investing. But my question I have for the forum is if I'm renting out my property and making about substantial cash flow $900 a month currently .should I convert the shop on the property to a ADU 2 bed 1 bath do all the construction myself and they are renting for about $1600 . Or should I save my money and invest in already built property . Thanks everyone

[Nik Moushon]

I know WA state, as a whole, is becoming more ADU friendly and especially so on the west side of the mnt but you really need to check with your local codes. There are a lot of requirements that come along with an ADU. Just because you have a garage you can convert doesnt mean it would meet all the codes. I would go into your local planning department and ask them. They will usually go over the code and tell you what is allowed for YOUR specific lot and how to get it compliant.

Another thing to consider is financing. I dont know about banks on the west side but over here on the east side I would bet that it would be very difficult to secure a typical loan for just an ADU. Main reason being its probably going to be too small of an amount. You might have to look at doing a line of credit or some other type of loan.