SoCal - Buying a Property and Building an ADU - Is It Worth it?

[Dave Chan]

Hey everyone. I am currently looking at a house in the 1.2mm range. I believe I can rent the house for 3500-4000. The home has a detached garage. My payments on the property will likely be 5500 per month. I was planning on converting a detached garage into an ADU. After converting the garage, I was planning on living in the ADU and renting out the main house. The cool part is that the home is 1/3 of a mile away from the metro station.

Does it make sense for me to convert a garage in the 1.2mm range? Do tenants renting out homes not want to rent a home that has a parking space but not garage parking? The backyard space is small, but I was planning on dividing up the backyard with bushes so that it is private for the ADU and also the main house.