Long time Land lord first time subdivision and new construct.
In Escrow on a property (standard 3/2 ~1200sq ft) with a garage. Property is 12200 sq ft. Off Market deal for a decent price but the deal makes it great. City has already approved for subdivision! Huge space in back. Lots on left and right have units in back. Im planning on building a House on the new subdivided lot with a Jr ADU and add a Jr Adu in the front. (total of four living units). Any Advice at all
on things to be careful with ?
on hidden costs?
on ways to proceed or exit strategies (flip/brr/hold) ?
on Financing new builds or even financing friends that do adu's
really looking for advice and tips on executing this long term plan. Looking to complete this venture in approximately 18- months. (permits are a time issue)
buying for 700. (ARV with simple 20k remodel is 775) - with jr ADU is 850
new cost for new build is approx 300k - jr adu is 75k
In general JADU reduce the value of the property. The JADU cannot be rented without owner occupancy. They take footage from the primary home. Before you proceed with the JADU verify how an appraisal will value the JADU. In the absence of comps, you do not know how it will be valued. This implies that it can be valued less than pre-ADU.