Hello Bigger Pockets family,
I am in a situation where I am trying to build a 2B/1B 715sqft ADU at my primary residence but am not sure how to finance the project. The ADU will be built on top of our garage and I am estimating around $270K to build it.
-One option to finance the build would be to sell a condo we have that would pay out around $300k after closing if we sold it. Currently, the condo cash flows $500 a month or $6k yearly. We owe $289k on the condo and its market value is $650K.
-If we used this cash for the new build we would collect $2200 a month or $26,400 yearly with no new mortgage payment.
-Another option would be to get a HELOC or 2nd mortgage, does anyone have a recommendation of anyone that is funding 2nd mortgages right now?
I am really looking for recommendations from people that have been in my situation to make sure I am not giving up a prime piece of real estate just for 1 ADU.
Thank you everyone for your help.
