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Updated almost 4 years ago,
Dirty Secret of ADUs
I am doing a BRRR on a triplex and wanted to add an ADU to maximize the value of the property. I was told by the lender that if I add the ADU the property will no longer qualify for conventional financing. SFR's that add an ADU do qualify, but duplex, triplex or 4plex that add an ADU do not qualify for a conventional loan. Seems like a big con to adding ADU's on 2 to 4 unit properties. Is this correct?