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Updated about 4 years ago,

User Stats

65
Posts
75
Votes
Mark Doty
  • Developer
  • San Diego
75
Votes |
65
Posts

Appraisal for newly built ADU?

Mark Doty
  • Developer
  • San Diego
Posted

Has anyone had experience with how ADUs are appraised? My consideration is to use a BRRRR model to purchase a SFR, then build an ADU/Companion Unit on the property. San Diego is a tough market for cash flow (initially) but adding units seems to be an effective way to overcome the rent ratio. However, I'm unsure how the addition of an ADU would impact the appraised value.

Do you have resources around this topic or know how appraisals are measured on ADUs, in CA, if know?  Thanks in advance for input on the topic!

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