Adding an ADU for cash flow

[John Crutsinger]

Investment Info:

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

Purchase price: $250,000
Cash invested: $200,000

3 bd sfr front house, convert garage to 2 bd back unit. LTV 44%, annualized return 11.39%.

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

Cash flow

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

MLS

How did you finance this deal?

Conventional loan

How did you add value to the deal?

Added an ADU

What was the outcome?

Increased cash flow