Rezoned to allow for ADU

[Michael Csrnko]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $390,000
Cash invested: $150,000

Rezoned to allow for ADU and am currently finalizing plans to add a second story and redevelop the 3-car detached garage into an medium term rental with an ADU above the garage.

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

Allows you to maximize your current portfolio rather than just buying another deal to stabilize. Also turns your typical residential property into a cash flowing asset.

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

Walk around door knocking and looking for distressed deals.

How did you finance this deal?

Bought it as a primary residence.

How did you add value to the deal?

Cleaned, updated and added new systems throughout initially. Then added a bedroom and rezoned the property. Now am finalizing architectural drawings for the redevelopment.

What was the outcome?

Property is now worth $875,000

Lessons learned? Challenges?

1) How to present to the city council.
2) Time required to get basic work done for rezoning and survey.
3) Doing it all with 2 small children and being the primary care taker in my family.

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

ADU4U - great company to help facilitate what needs to be done to get an ADU completed.