Beginning ADU, JADU BRRRR deal

[Marco Felix]

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $750,000
Cash invested: $220,000

Currently a 2bd / 1 bath with plans to convert it to a 3/1 plus a 2/1 ADU and possibly 1/1 JADU with a potential gross rents of 7,600 after construction.

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

The new ADU laws have streamlined the permitting and construction process.

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

MLS

How did you finance this deal?

Used sweat equity I built up from my first "House-Hack", ADU, BRRRR deal.

How did you add value to the deal?

By expanding the main house and also a complete kitchen and bathroom remodel, also added another bathroom to make the original house a 3/2. We also have plans to add an ADU and possibly a JADU.

What was the outcome?

I completed my first "House-Hack" deal which has allowed me to save my W-2 income since I do not have to pay for living expenses and now I am in the beginning stages of my second project.

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

I am licensed which gives me the opportunity to find off-market and MLS deals for clients and future projects.