All Forum Posts by: Tecsia Evans

Thank you @Theresa Harris for your advice, I really appreciate it. If we sold it and moved out would probably use a part of the return to invest in building another new construction project and then the other part as a down payment for our own primary residence. 

Hi @Theresa Harris. If we sold it, the actual return would be $400k in our pocket.

Thank you @Jonathan R McLaughlin for the clarification and the great suggestion to run the numbers for the cash out refinance to make sure I am exploring all options. Thank you @Ryan Tessier and @Bud Gaffney for your advice as well! Very helpful and much appreciated!!!

Hi @Jonathan, thank you for your input. The $24k a year from the rental is what the return would be after mortgage is paid for and all other related expenses are put aside. We have a fixed mortgage already at 2.99%. You mention cash out refinance, can you say more about why you believe this would be helpful to consider given my scenario?

Thank you very much @Bill for breaking that down. I had not factored that in, so the information you provided is super helpful! Thanks again. 

Thank you @Bill Brandt. The house is worth a lot more. $800k would be the return and $400k of that would be the profit. I am not following the last two sentences of your post, would you mind clarifying. Thanks for your help!

I have a new construction home that my husband and I built in 2020. We are trying to decide if we should sell or rent. If we sell after living in it for 2 years we would make about a $800k return ($400k of this amount would be profit). If we rent both the main house and ADU we would profit $24k a year (after you minus all fees related to renting). The property is in a high demand area in Oakland. Selling it would yield a great return now but we don't know if taking this route would be worth missing out on a great passive income stream for the future. Would appreciate any advice from those who have had to make a decision like this, thank you!

Thank you @MatthewForrest for sharing your experience. I really appreciate it!

Thanks for the feedback. The ADU is adjacent to the house so as you come down the stairs you pass the front door of the ADU so it would not be possible to put a fence. Do you both of you mind sharing your experience of the pros and cons to living in main house and renting to a tenant in ADU? Thanks for the help!

My husband and I have built a new SFR and an ADU. We are deciding if we want to rent both units or live in main house and rent ADU. Our concern with the latter is that we have two young children and concern about the level of privacy we will have if we rent ADU. Each unit has its own entrance but the property is situated to where we would see our tenant coming and going. Would love to hear from those who have children and have had experience living in their main residence and renting out the ADU, the pros and cons in doing so. Thank you in advance for your advice!