Riverside County ADU
Hello BP Fam,
I am in a current stalemate with my next investment move, so I am looking for guidance!
My primary residence has about $200K in equity and my monthly mortgage payment is $900 per month. Fortunately, I can rent the house out for $1,975 a month, which would lead to about $1,000 a month in cash flow. However, my lot is big enough that I considered adding an ADU. From my understanding, an ADU could run about $125/Sq. Ft. In short, a $100K ADU build could potentially rent for $1,000 a month. This would increase my property value, as well as improve cash flow for the long haul.
On the contrary my other option was to leave the house as is, rent it out, move to another house and use the cash flow to offset the cost of a new primary residence that will eventually become another rental (once I put some sweat equity into it).
Any thoughts, suggestions or recommendations would be much appreciated!