Garage ADU Conversion

[Ruben Banuelos]

Investment Info:

Single-family residence other investment.

Cash invested: $40,000

Garage ADU conversion with city permitting.

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

To increase property value and cash flow.

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

Networking with contractors and architects for design and execution.

How did you finance this deal?

Credit Cards and HELOC combination.

How did you add value to the deal?

By increasing usable square footage, I was able to re-appraise and increase the value of my home by an additional 460 square feet of "livable space" and force the appreciation of my property's value.

What was the outcome?

$24,000/year in rental income, plus $188,000 in forced appreciation.

Lessons learned? Challenges?

Permitting is a long process. Take that into consideration. Start with the end in mind.

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

No.