Hi all and thanks in advance. Im talking to a landlord that owns a property in a neighborhood where homes dont really sale for approximately $3-400k than what they are looking to get. Why? because has converted the residence to adu? whats my homework, what more info can i provide here in this post?
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
5y
Was it a legal conversion? Permitted? Converting a residence to an accessory dwelling unit isn't the norm. An accessory dwelling is a secondary dwelling located on an existing property that might look like a garage, pool house, shed, office, more. Depending on the market, these additions can add a lot of value if supported by comparable sales.
First step is to clearly understand the property. What is it? What is it size, lot size, zoning?
As all the conversions been permitted? Are they legal to rent?
What is the property worth? What are the comparable sales? The rent doesn't matter because the value will be based on other like properties located within a mile that have sold in the last 30 days.
This doesn't sound like something I would pursue. As you pointed out early, the other properties are not listed/selling for what this landlord wants for his. It's not worth what he thinks it is but what the market has priced it at.
Sometimes the best action is to BOLT. What starts out crazy will only get crazier.
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
5y
Was it a legal conversion? Permitted? Converting a residence to an accessory dwelling unit isn't the norm. An accessory dwelling is a secondary dwelling located on an existing property that might look like a garage, pool house, shed, office, more. Depending on the market, these additions can add a lot of value if supported by comparable sales.
First step is to clearly understand the property. What is it? What is it size, lot size, zoning?
As all the conversions been permitted? Are they legal to rent?
What is the property worth? What are the comparable sales? The rent doesn't matter because the value will be based on other like properties located within a mile that have sold in the last 30 days.
This doesn't sound like something I would pursue. As you pointed out early, the other properties are not listed/selling for what this landlord wants for his. It's not worth what he thinks it is but what the market has priced it at.
Sometimes the best action is to BOLT. What starts out crazy will only get crazier.
Real Estate Investor · Hayward, CA · Member since 2015 · 134 posts · 88 votes
5y
Check Zillow.com for home sales in the area, and check rentometer.com to see what the rents will bring. If attached units are not permitted, you might want to pass on this unless zoning says you can get them permitted later. Find out the cost to do that. Multiples are always a good bet if everything is presented above board, and especially with permits and approved by County. In-law units are the new thing with housing so expensive.