ADU development in San Diego

[Michael Walker]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $720,000
Cash invested: $250,000

ADU development on SFH property in cul-de-sac/ weird property layout that actually better fit as a duplex.

ADU size: 550 sqft (~$320/sqft) in 2020.

What made you interested in investing in this type of deal?

Lot size and location.

How did you find this deal and how did you negotiate it?

MLS. Negotiated with repairs.

How did you finance this deal?

Conventional loan. Refinanced after build out.

How did you add value to the deal?

Addition on top of garage, separate parking area for tenants, solar panels on shed style roof.

What was the outcome?

Successful build with tenants paying off the ADU in 8 years. Cashout refinanced it after construction being able to pull money out pretty immediately.

Lessons learned? Challenges?

Permitting through the pandemic was very painful

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Agent - Redfin.
Lender - local bank

[Emy Bernardo]

@Michael Walker  - very nice! We are drawing up plans to do the same at our property in CDA, ID. (600 SF
ADU on top of garage/shop). Do you have a photo of the outside that you can share?