All Forum Posts by: Keenan B.

I agree with Mohammad. Check local rules about ADUs, find out how much it would cost to build and what you'd get for rent. If the lot is that big, adding an ADU like a carriage home would be nice provided you have parking for everyone.

Most rentals don't make a lot of money each month when they have mortgages on them.

Thanks for the input Theresa. Yeah, I'm not expecting anything crazy in terms of cash flow, but just brainstorming which option might have the highest cash flow. With my current situation and the current rates, it's looking so far like an ADU would have the highest cash flow. But does come with the downside of managing the build process.

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Quote from @Mohammad Parwez:

I would check for the following before jumping into any conclusion:

1. Check with local county/city build code regulation to see if an additional ADU can be permitted.

2. If you live in a HOA controlled subdivision then check the CC&R to see if this is allowed legally.

3. The HELOC rates depend on daily interest rates and you may end up paying different amount each month so profitiablity will differ for each month. Although it is a great way to leverage your home equity but with high interest rate scene it may not be very profitable.

4. It would be a better idea to take that equity out and use it to put a downpayment for a multi family unit may be a fourplex. That way you can get returns earlier than having a new construction.

At the end the decision is yours but think about all different options.

Thanks for the input Mohammed. I have already looked into #1 & #2 you mentioned and everything looks good there. I'll definitely factor in a multi-family unit into the equation before I make any final decisions. That's a good option to consider.

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Quote from @Anthony Freeman:

Quote from @Keenan B.:

Hi folks,

I've currently got 150k equity at my primary residence. The lot is spacious and there is a great space in the front yard for an ADU that would be very removed from the part of the property we spend our time on.

That said, I’m brainstorming what to do with this 150k equity. My goal right now is to increase passive cash flow, and I’m thinking that putting an ADU in the front yard might be my best option.

The property is in Bend, OR, and I would be able to build the ADU for ~100k (family contractor discount) and rent it out for ~1500/month.

I thought I would see if there is any input on any better cash flow options that I might consider as I decide what to do with this 150k equity.

Any input would be appreciated!

Have you heard anything about private lending?

No, I haven't looked into private lending much as an option yet!

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Hi folks,

The property is in Bend, OR, and I would be able to build the ADU for ~100k (family contractor discount) and rent it out for ~1500/month.

I thought I would see if there is any input on any better cash flow options that I might consider as I decide what to do with this 150k equity.

Any input would be appreciated!

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All Forum Posts by: Keenan B.

Keenan B. has started 3 posts and replied 14 times.

Post: Best way to spend 150k HELOC for passive cash flow?

Post: Best way to spend 150k HELOC for passive cash flow?

Post: Best way to spend 150k HELOC for passive cash flow?

Post: Best way to spend 150k HELOC for passive cash flow?