All Forum Posts by: Kyle Holden

Do they buy your existing appliances from you and offer credits for trade-in?

Hey BP Community,

My wife and I are looking at replacing the Samsung appliances (range, dishwasher, washer/dryer, fridge, standalone microwave) our builder installed in the home in 2018. Everything works great, we just want to upgrade above builder grade. 

Is there an appliance store in Raleigh that does appliance trade-ins OR are there any rental investors on here who need appliances for one of their rentals?

Thanks in advance for any guidance or tips!

@Adam Schneider

@Adam Schneider I think where I didn't provide enough clarity - the ADU will be built above a garage. Structurally, this might explain why the quotes I've gotten are between $195-260k

2) Thank you! I’ll reach out 

@Katherine Serrell @John Catlett My wife and I are going through this exact process now. Have y'all looked at RenoFi? Their network of lenders offer fixed-rate home equity loans up to 20 years on the post-build value of the project. Only caveat is I think they measure this against the property the ADU is being built on vs another property such as an investment rental.

@Jeffery Chang That's great feedback! So riddle me this - we have a deck that enters our house from the rear. The ADU architecturals are drawn up such that stairs leading to the ADU are attached to the deck which accesses the house. The structure is detached but the deck technically attaches both structures together. Have you heard from any appraisers on how they would value/classify that?

Dan, fantastic feedback! Thank you. So thorough.

Good, then that shows I’m not crazy and this is more commonplace. Those explanations make sense. Appreciate the insight 

*I guess I have two BP accounts - posting again from correct account*

Thanks Ben! I’ll look up Derek.

The goal for building has always been CF but when trying to finance, not being able to get what I’d consider proper equity value can be frustrating.

We got quotes form several builders - $195-225k before fixtures and furnishings (so assume $220-250k all in) - for a 430 sqft ADU above a 430 sqft garage

Questions for the community about ADU builds:

1) It seems that building an ADU does not add $:$ equity value to your existing property. On average, the numbers I am finding show a $0.50-0.70 equity increase per $1 invested. If building an ADU is a way to "force equity," it seems to be an inefficient way to do so. Can anyone speak to why this is?

2) Due to #1 above, I have found that the majority of lenders will not lend to build an ADU based on the post-build appraisal (companies like RenoFi are helping rectify this). They will lend against the current equity on property via a second mortgage or HELOC. Does anyone know of other lenders (beside RenoFi's lending network) that will lend against post-build appraisal?

Context - My wife and I own/live in a property in downtown Raleigh, NC. We are looking to build an ADU on our property (above a garage) to use as a STR/MTR. Design/Engineering and build estimates are complete. Exploring financing at this moment.