It is usually difficult to take money against it from the bank, it might not be a 1:1 value add - meaning if you invest 100k into an adu it might not raise your value by 100kThat being said, it can be pretty lucrative especially in expensive and sunny CA - since building lots are no where to be found and existing real estate returns are very poor.My partner builds these units.

Higher loan balances we would likely see an opportunity in the future to refinance again due to lower rates so consider a 2-3 year prepayment penalty.Of course if you qualify for Conventional Financing (Fannie/Freddie), there are no prepayment penalties so just calculating out the return of investment timeline on point buy downs.Good luck shopping and let me know if you want to talk further!

The biggest issue is that forgetting to assign a location or choosing the wrong one can mess up your balance sheet, leading to inaccuracies.

You could have 10 of these, and they get progressively difficult.  

If anyone has tips for tackling those first few deals, insights on balancing these strategies, or just wants to connect, I’d love to chat!

ThanksIt would be very difficult to accomplish this. 

Agree it is difficult to assess costs when they vary so much by location.Keep in mind that some turnovers are sickenly expensive, and that is just the nature of the business. 

I hope you are staying safe in this difficult time. 

Have you thought about how you’ll balance those dynamics?

She is now in arrears 3 months and has agreed to deed the land back to me and take a Promissory Note for the balance 30K.