Considering investing in the ADU my landlady is building.

[Brian Bryson]

I think she could use some money to help get it built sooner and with higher quality. I’m considering asking her if she’s interested in me investing in the build, up to 100k, in return for a % of the rent and a proportional % of accrued equity when she sells someday.

Is this a thing? Am I crazy?  I’m brand spanking new to real estate investing. I have no idea.

I can’t afford anything here in Northern CA. And after 3 months of seriously considering OOS, I’ve become afraid and discouraged, and have taken a step back.

Yesterday, while gazing out the window of my tiny home on wheels in the backyard of my landlady, I stared at the crude beginning stages of the ADU she and her boyfriend are building, and a light bulb lit up above my head.

[Brian Bryson]

Hey Travis. I really appreciate you! ♥️👍 Thank you once again! 

Great feedback!!

Yes, the “marriage” aspect is something to really think about. It’s worth mentioning that I trust her more than anyone else I know.

Yes, we’d definitely want lawyers to help us get it right. I’m good with that.

I think she actually may want & need help on this build. She and her boyfriend work on it for a few hours on weekends. So far they’ve bought a small stack of lumber (what they could afford at the moment) and another small stack of scrap they got for free from a construction sight. I don’t think there is as an architect involved. Their build is moving very, very slowly.

Does this added information change anything for you?

I'm thinking that maybe with my investment she could get an architect, builders, and materials, and get a nice ADU rental up and running relatively quickly. Which would easily bring in, at the very least: $2,000/mo in long term rent, and perhaps quite a bit more in short or midterm.