Garage Conversion and Rental

[Keith Miller]

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $326,000
Cash invested: $100,000

Converted the detached 2 car garage into an ADU, doing most of the work myself. Soon afterwards, we moved to our next house, and am currently renting the main house. We were running the ADU as a Airbnb and making great money cashflow. The whole property currently cash flows an average of over $1,000 per month. We put 20% down on the house, and paid for the ADU improvements in cash, so we used to have have a lot of equity tied up. I got a $70K HELOC on the property, and am going to use that money for the down payment on the backyard duplex I'll be starting soon.