Using a Construction Loan to Build New Garage with ADU on Top

[Morgan Roddy]

Hello everyone! My name is Morgan and I am a Colorado Investor. I currently have 4 properties and am looking to expand. 

I am looking for ways to make my primary home cash flow and my favorite option would be to build a larger garage with an ADU on top to rent out long term or short term. I have gotten a few quotes for this and they are nearing 250-300k. I don't want to tie up all my cash in one project as I have other plans to continue growing my real estate portfolio. Because of this I am looking into financing options for this Garage ADU. Luckily, my home lot is zoned for 3 units. Because I would be building a separate residence do you think I could finance this via construction to traditional mortgage?

One thing to note is my neighbor a few doors down have the same zoning and they split the house up into 2 units and turned their garage into a third all with different addresses. My situation would be a bit different as I would like to use the garage personally and rent out the space above. If I ever sold my primary I would sell it as a package deal, but I don't plan on ever selling (buy and hold long term goals here).

Thank you in advance for your input. I greatly appreciate it.