My first investment property and ADU

[Ely Kavon]

Investment Info:

Single-family residence buy & hold investment in Winnetka.

Purchase price: $602,000
Cash invested: $30,000

Single family rental , added an ADU

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

I was looking for a property that I could build a 1200 sqft ADU in the back

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

regular MLS

[Ely Kavon]

@Joseph M. I financed the property at first with a conventional loan with 10% down. and it originally appraised for just over what I paid for it. After the ADU was built I was able to refi and pull out 80% with a traditional loan and another 10% with a HELOC , and was able to pull out everything except the original down payment (60K) but it was well worth it because of the tremendous cash flow I have on the property.

The main house rents for $3700/Month the ADU sections are renting at $1,800 per unit including utilities(there are 3) so the property is grossing $9,100. total utilities, water , gas & gardener expenses are $400 per month (I have Solar on the property , so no electrical bill). PITI is right around $4,500.

It took me a total of about 4 months to finish the project.

I am currently finishing a new project that is very similar, but has a SFR , a JADU and a 2 story ADU. I am actually really proud of the new one, since I have built so many of these for customers in the last few years I have all my systems in place to make this new project a lot smother and much easier to manage once it is rented.