Fresh Built ADU, Looking for Refi info...

[Johnny Hayes]

Hi, 

I just built my first ADU behind my house over the course of 2019. In that time I had neck fusion surgery and was away on road working for 7 months and we just finshed the build.

I am looking to refinance and pull all I can out of it to start my next build. Looking for refi advice...

[Barbie Steele]

Unfortunately with the ADUs being new, many times it is difficult for the appraisers to find good comps on them to determine the value. Even if they find comps, generally the ADU addition is not valued even close to what it cost to build it. The best strategy I've heard is to rent out the ADU for 6 months to a year so there is a rental history, and then the appraisers can base the value off of that.

MLO in California, #1865333