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Updated 10 months ago, 03/03/2024

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Alecia Loveless
Pro Member
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To ADU or not to ADU

Alecia Loveless
Pro Member
Posted

I am refinancing a property to free up money for additional investments.

I currently have a 2 family with room to convert the garage into a studio. The total cost will be $70,000. I’m thinking of using some of the refinance money to start the garage conversion by doing the portion where the roof needs to be raised which is the hardest, most expensive part. I could then finish the project over time. I expect this to cost about $30,000.

This will be a different construction crew from my usual contractor and will keep him free to work on other jobs.

The finished rental value of the unit will be about $900/month. This will be pure cash flow of 12% return per year. The ARV will be at least what has been put into it.

Would you do the roof work so the rest of the project could be finished over the course of the next year or so as funds were available or would you focus on just buying a different property entirely that would make more cash flow? Or would you make the whole project a priority and finish it ASAP?

  • Alecia Loveless
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