House Hacking and ADU Build

[David Maldonado]

Investment Info:

Single-family residence buy & hold investment in Santa Maria.

Purchase price: $366,000
Cash invested: $87,000

House Hacking / Live in Flip / New Construction

Asking Price: $370,000

Main House Rehab: $12,000

VA Loan 0% down

PITI: $2080

Main House Rent: $4000

* ATTACHED 615 SQFT ADU BUILD (OWNER BUILDER) *

2 Bed 1 Bath, Washer & Dryer, LARGE Private yard and Entry.

Grand Total Cost to Build: $50,000 (Plans, Permits, Construction, Fees, Etc.)

ADU Rent: $ 2100

* 488 SQFT JADU (GARAGE CONVERSION) (OWNER BUILDER) *

1 Bed 1 Bath, Washer & Dryer, Private yard, parking and Entry.

Grand Total Cost to Build: $25,000 (Plans, Permits, Construction, Fees, Etc.)

JADU Rent: $1500

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

The lot size for for an ADU build.

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

Zillow

How did you finance this deal?

VA Loan

How did you add value to the deal?

Built an ADU and a JADU, and a full renovation of the main house.

What was the outcome?

Massive cash flow from 1 property and both my ADU builds broke even at 15 months.

Lessons learned? Challenges?

Learning the city codes and taking on my projects as an owner builder.