Currently building ground-up ADU in Los Angeles County

[Aaron D. White]

Investment Info:

Single-family residence other investment.

Currently in the permitting and development phase of a 609 square foot ADU. Will be purchasing an investment property in Detroit this year as well. If anyone has questions about this kind of investment let me know.

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

I have a single-family home and large lot; in a perfect world I would tear the house down to build multifamily, but alas we don't live in a perfect world. I did do a financial model (in excel) for this ADU.

How did you finance this deal?

Mortgage re-fi from 3.5% ARM to 4.85% 30-yr

Lessons learned? Challenges?

Permitting is a challenge...it's been 4 months now. Also, the county required a demo permit before issuing a building permit.

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

I worked with Kinecta Credit Union, Architect, Contractor.