Updated 21 days ago on . Most recent reply
Considering building an ADU
Hi Bigger Pockets community!
I am brand new to real estate investing. I have been watching trends and studying for at least five years or so. Recently, in the last six months or so, I have started listening to the BiggerPockets podcast and I love it! I’ve been trying to figure out how I can get into the real estate game for sometime now. I am 49 and my husband and I just closed on our very first property on July 24 in Oceanside, California! It’s been a journey.
I have a really good friend who was our realtor. She has been flipping in San Diego county for a while and I am hoping to get under her wing. I have a W-2 job a nurse and I work 30 hours a week doing that plus I 1099 for an insulin pump company and do trainings up to 10-15 hours per week spent on that.
I am interested in refinancing or getting a HELOC in the near future to start either out of the county or out of the state real estate investing. We got a good deal on our 3/2 house in Oceanside. After replacing the electric panel, painting, updating the kitchen, treating for termites and removing the popcorn ceiling i'm pretty sure we have about $50,000 or more in equity currently. I know that we need to wait six months to a year to pull out any money.
But…Here is my question: our 23-year-old daughter recently broke up with her boyfriend and is planning to move back home, lol. No time and the kids start coming back lol (the 21-year-old is still living at home in one of the bedrooms). We are hoping to add an ADU that our daughter can move into. We have a bedroom that she can use for now that we are currently using as our office space. We also have a one car garage with a small addition in the back of it. There's no waterline in there though, and the electricity is only in the small closet area.
We could also eventually rent out this to someone else when she decides to move out again. We have 6000 ft.² lot mostly flat. The house footprint is under 1500 ft.² and the backyard is huge and has plenty of room. The house was built in 1964 and still has old copper plumbing and cast-iron sewage line. We did install a couple more clean outs during closing.
Currently, I'm mostly wondering about the ADU process. What is the best way to approach this and the approximate monthly out-of-pocket I could expect to spend on this. Our daughter is hoping to get her rent around $1000 a month.
Thoughts?