BRRRR - Buy, Rehab, Rent, Refinance, Repeat
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Does my property value increase after adding ADU's, thus allowing me to refi?
Hey all,
My name is Sean. I've been listening to the bigger pockets podcast for approx 3 years now, and was finally able to pull the trigger and finance my first multifamily property. The reason I am posting is because I've received some contradicting information about the ability to refi my property after adding ADU's. To provide some background here, my wife and i recently purchased a triplex that has an existing 500 sq.ft attached storage unit (conditioned space) and a detached 5-car garage. We purchased this property because of all the intrinsic potential it possesses. The intent is to convert the storage unit into a J-ADU, and the 5-car garage into two new detached ADU's. All three units will be funded by us - no loans. I was told by some of my clients that by adding these ADU's, my property value will not increase and I will not be able to get my money back out through a refi. I was also told by some of my clients that my property value will increase, and I will be able to get most of my money back out through a refi. So my questions to you all is as follows:
- By adding these ADU's to my property, will I be increasing my property value?
- Will I be able to pull my money back out after adding these units? (heloc or refi)
I am an engineer by trade, and own my own comapny (AHAE Designs Inc). I have designed many ADU's for many multifamily lots in the LA County area. I have a stong feeling that my clients would not be adding ADU's to their properties if they were not able to get their monies back out to keep investing. I look forward to your resonses. If you have any information that can potentially be useful to my case, please reach out to me directly. Thanks in advance experts.
a