Just finished builing a new ADU for long term rental in San Diego

[Lee Gilroy]

Investment Info:

Single-family residence other investment.

Cash invested: $200,000

Just completed 9/22/2022 . New ground up build 1,000sq' 3 Bedrooms, 2 bathrooms ADU, between 2 of our existing rentals.

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

Cash flow, high return on investment. High rental demand. Part of our long term plan.

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

We already owned the lot with 2 houses on it, and manage to add this new ADU in between.

How did you finance this deal?

Cash

How did you add value to the deal?

Added 1 more rental property to an already owned lot

[Jordan Graham]

That looks awesome! 

How long did permitting take? What part of town are you in? How much are you renting each unit for?

We bought a 3/2 on a 10,000 sf lot in Lake Murray last October and built a driveway for our RV with utilities that we are renting on Airbnb and now we are contemplating building a studio or 1 bedroom ADU as well to maximize our cash flow. We are wondering if we should put our money into a down payment on another property or build out a $200k ADU instead? What would you do.