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Updated about 1 year ago,
SFR + ADU in Silicon Valley
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $930,000
Cash invested: $420,000
We picked up a 3 bd/2 ba that went pending but failed its first sale. The original asking price was ~990k and we negotiate an easy sale at ~920k. At the same time, other houses were going for well over asking price with all cash offers.
In 2021, we added a second unit in the form of an ADU for 200k. The property has appreciated nicely, it pays for itself, and it kicks off a little cash flow every month.
How did you find this deal and how did you negotiate it?
Our agent helped us find this. It had been on the market, went pending, and then failed the sale before we picked it up
How did you finance this deal?
Conventional financing and cash.
How did you add value to the deal?
Added an ADU.
In the main SFR, we did new paint (Interior and exterior). Refinished floors. New bathroom vanity. Moved the laundry indoors.
Lessons learned? Challenges?
Avoid bad property managers at all costs.