Accessory dwelling unit project in Los Angeles!

[Mehdi Heidarian]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $498,000
Cash invested: $135,000

I converted the garage on this single family home to an Accessory dwelling unit (ADU). The house had a detached garage which was perfect for the conversion. I now live at the new unit and putting the main house in the market to find an interested tenant.

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

I've been involved in construction for a couple of decades now so fixer uppers don't scare me. I saw the potential value add at the time I was shopping around for homes and envisioned converting the garage to ADU when I saw this house. I'm always looking for new opportunities for investments and value add.

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

I found this SFR on the MLS and made an offer $2000 over asking and my offer was accepted right away.

How did you finance this deal?

I put 20 percent of my own money down and financed the rest through a lender.

How did you add value to the deal?

I converted the garage on this single family home to an Accessory dwelling unit (ADU). The house had a detached garage which was perfect for the conversion. I added value not only by profiting through capital gain but also by creating potential cash flow from renting the now available unit.

Lessons learned? Challenges?

investing in real estate pays off over time. It's not a get rich quick ind of a game but with lots of patience and some hard work lots of profit can be made.

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

yes, I hired me as my realtor! Mehdi Heidarian.  :-)