ADU Garage Conversion using VA home loan!

[Ryan Daniel]

Hello!

I am a real estate investor and I'm looking to buy an outdated single family home in a nice neighborhood with a detached garage in Los Angelos CA using a VA home loan. Since it is a VA loan, I plan on occupying the property. I plan on turning the detached garage into an ADU and using it as either a short term rental or put a tenant in it. To fund this process I want to use a hard money lender to pay for the rehab and then cash out refinance in 7 months to pay the hard money lender back. How I am analyzing deals in this expensive market is ARV-Fixed Cost-Rehab cost=max offer. My goal is to obtain an appreciating asset in CA and decrease my expenses by house hacking and using the adu as a short term rental or rent it out completely.This is the first time I'm doing something like this so I have a couple questions.

1. How much does a adu cost with an existing structure?
2. If you had VA home loan, would you consider something else in LA county?
3. Should I be analyzing any additional cost?

4. I don’t know what I don’t know. Please give any beneficial advice regarding adus!

Thank you!! :)

[Conner Olsen]

Quote from @Ryan Daniel:

Hello!

I am a real estate investor and I'm looking to buy an outdated single family home in a nice neighborhood with a detached garage in Los Angelos CA using a VA home loan. Since it is a VA loan, I plan on occupying the property. I plan on turning the detached garage into an ADU and using it as either a short term rental or put a tenant in it. To fund this process I want to use a hard money lender to pay for the rehab and then cash out refinance in 7 months to pay the hard money lender back. How I am analyzing deals in this expensive market is ARV-Fixed Cost-Rehab cost=max offer. My goal is to obtain an appreciating asset in CA and decrease my expenses by house hacking and using the adu as a short term rental or rent it out completely.This is the first time I'm doing something like this so I have a couple questions.

1. How much does a adu cost with an existing structure?
2. If you had VA home loan, would you consider something else in LA county?
3. Should I be analyzing any additional cost?

4. I don’t know what I don’t know. Please give any beneficial advice regarding adus!

Thank you!! :)

You need to find a realtor in your market that is familiar with garage conversions, ADU's, and renovations. From what I've heard it can cost $50k+ to convert a normal garage. Look up The ADU Guy's BP episode. He goes into detail on this, he also has a good youtube channel.