Sacramento ADU Case Study: New Construction & Detached. Cost 4k. Value

This homeowner hired a contractor who built him a New Construction ADU for $140k.

It took a total of 12 months and the builder made it seamless for him. He saved himself money by submitting the permits himself and obtaining great financing.

This 2 bedroom 1 bathroom Accessory Dwelling Unit now rents for $1500 a month. This ADU paid for itself in 3 months after a successful cash-out refinance. Giving the homeowner a brand new rental for an extra few hundred dollars a month.

The homeowner bought a property where there was potential to build an ADU. Large lot with expansion potential.

He was very cost-conscious and did his research. He also wanted to help. So he value-engineered the project as much as he could based on his planning experience.

Not only was his ADU great for his pocket book but to create more housing in a city where it’s much needed was huge for him.

This property was bought for 410k. With 20% down that’s 82k down payment and loan balance of 328k. The ADU cost 140k and it was all financed through a renovation rehab loan.

New debt on the property 468k (328k loan amount + 140k ADU Cost).

The property appraised after the ADU was completed at 580k. This ADU increased the value of this home by 170k in 12 months! (580 - 410)

The New Loan amount based on an 80% cash-out refinance was 464k. Only 4k more than the loan amount.

That’s how this ADU cost only 4k! Sacramento ADU Case Study: New Construction & Detached. Cost 4k. Value 170k.

This homeowner, Dov hired a builder who completed his New Construction ADU for $140k. It took a total of 12 months and the builder was amazing. Where did this homeowner saved himself money? It was through submitting the permits himself and obtaining great financing. Now this 2 bedroom 1 bathroom Accessory Dwelling Unit now rents for $1500 a month. It's paid for itself through a cash-out refinance.

Essentially given the homeowner a brand new rental for an extra few hundred dollars a month.

Dov bought a property where there was potential to build an ADU. Large lot with expansion potential.

He was very cost-conscious, did his research, and value-engineered the project as much as he could based on his area of expertise.

Not only was his ADU great for his financial position but it was great to create more housing in a city where it’s much needed.

This property was bought for 410k. With 20% down that’s 82k down payment and a loan balance of 328k. The ADU cost 140k and it was all financed through a renovation rehab loan.

New debt on the property 468k (328k loan amount + 140k ADU Cost).

The property appraised after the ADU was completed at 580k. This ADU increased the value of this home by 170k in 12 months! (580-410)

The New Loan amount based on an 80% cash-out refinance was 464k. Only 4k more than the loan amount.

That’s how this ADU cost only 4k!