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Updated about 3 years ago,
How should I improve an SFH that I want to hold for 5 years?
Background
- Location: Bay Area Peninsula
- House Price: ~$1M, Mortgage $700k
- Rent with similar square footage: $4000/month
Running the number, it looks like it marginally break-even.
But I really wanted to have some cashflow during my holding years, so I am thinking to make an ADU. Here is my dilemma
- adding ADU itself cost money anyway (though a bit less than normal expanding?), but ADU won't add selling value as normal expanding
- doing normal expanding cost equal (if not more) money, but will add less cash-flow during my holding years
I wonder if there is a way for me to do ADU now, and later on convert ADU to normal square footage when I plan to sell.
Is this a good idea? (I am a new investor)