Here we go, another bay area ADU appraisal topic, some folks here know that I planned to build ADU way back in 2018 but canceled and instead, I use the money to purchase another duplex still in the bay area, but that duplex I already sold in 2021 with very nice three digits IRR lol :)So last month I was able to secure 1900k sqft  SF that comes with a "free 400sqft detached ADU", I purchased it below the price, but the appraisal is funny, they are trying to be very conservative so they put the living square as 1500 sqft as they value the first floor for only 1/4 of the price although it's livable living space.

It reduces a major risk obstacle for them and shows that you are worth the "investment" on their end.As for the front end of the BRRR, just making sure that your lender has a 12 month term to ensure that you have enough of a "runway" with whatever lender you are able to use for your refinance.

However, we have purchased several homes through them despite the obstacles.  

So, here goes....The Property:I'm currently in escrow on a $1.2M property (VA loan 0% down) in Reseda, CA that has a 3 bed/ 2 bath detached ADU 1200 sqft and a main house that is 2 bed/ 1bath 1500 sqft.

Oh really, wow, sounds like more obstacles to get through to get this property.

I have a two car detached garage that is currently has an unpermitted ADU that I want to add on to and bring up to code.  

We now have better food chains ect moving into the market so it must have worked.City Data for Housing Info:All housing units: $116,170; Detached houses: $121,779; Townhouses or other attached units: $78,803; In 2-unit structures: $7,966; In 3-to-4-unit structures: $43,811; In 5-or-more-unit structures: $51,776; Mobile homes: $39,211Median gross rent in 2012: $627.Same goes for you as well, If/When you come out this way to visit give me a yell and we can coordinate a lunch or something.Looking forward to working with everyone here!

. - Fully Occupied with long-term leases- Property Management in Place- Brick Building- Gross Sq Ft: 9,189- Detached garage: 704 sq ft- Lot size: 7,009- Built: 1920- Heat: Boiler- 9% CAP RATE- Asking Price - $435,000*RENT INCREASES AND VALUE ADD AVAILABLE*DM For More Info

Right but not all of these have friendly laws, thats the obstacle 

In Alabama, if the tax sale was before the foreclosure, then the mortgage "detaches" from the property but the lender has redemption rights.