Any tips on how to estimate property value increase/estimated rent income for ADUs.

[Hunter Broschinsky]

Converting my 505 sq foot garage into a ADU. Im looking for market specific tips to estimate the potential property value increase. There is also only 1 comp for rent near me, making the estimated rent fairly hard. Im in oceanside california about 13 minutes inland. Struggling to decide if the long term play or the short term play would be better. I know there are a lot of factors here to consider but id love to get some advice.

The ADU: bedroom separated from living room, full bathroom, kitchenette, washer and dryer. Everything is going to be fairly nice with the bathroom and flooring being on the higher end.

[Andrew Postell]

@Hunter Broschinsky this is a common element in real estate investing - if there aren't any comps...then you are giving up control of your deal to someone else - the appraiser.  Let's take the famous "lake front property" for example.  How often do people sell their lake front properties?  And the answer is never.  So, when a lake front property comes on the market...there's no "true comps" for it.  Meaning, there might be properties that are a couple of streets off the lake...but those aren't really comps.  So, when I sell that "lake front property" I have to know that I am limiting the number of people who an buy my "lake front property" and that's to people who have enough cash to cover the difference between the appraised value and my sales price.  What will an appraiser say the "value" of the view is?  That's REALLY hard to agree on.  And that's why I'm giving up control to that appraiser.

Take that same concept and apply it to putting in a pool...what if there are no comps that have pools?  Apply it to adding bedrooms, quartz countertops, and everything else you can think of.   Just understand that you may not get ANY value from adding something to your house if there are no comps.  I know it's hard to think that it's not possible...but if I had comps, then I would know the EXACT value of that property.

Hope all of that makes sense.