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Updated 6 months ago, 06/19/2024
Planned for ADU, ended up with LTR with a good amount of appreciation
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $565,000
Cash invested: $33,500
Bought the house to live in and build an ADU on the property because it is zoned for it. After doing the research and meeting with multiple architects and builders it became a project that we did not want to take on. Since we bought it though, we got to live in it while it has appreciated around $80k-100k. We just moved out and are renting it long term and making around $400/month.
What made you interested in investing in this type of deal?
Wanted to find a place to live that had upside.
How did you find this deal and how did you negotiate it?
On the market
How did you finance this deal?
Conventional 5% down
How did you add value to the deal?
No added value yet, we plan to build an ADU in the future.
What was the outcome?
Good monthly cashflow with appreciation.
Lessons learned? Challenges?
Building an ADU is hard, difficult to get financing and city will hold you up with permits.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Mike Stone is a great lender.