First Investment - ADU House Hack (Tampa Area)
Hey all,
I figure posting here will give me some additional motivation to document. My wife and I are closing on an ADU house hack in the Tampa area and couldn't be more excited about the opportunity to both save us a LOT on our monthly living costs and learn even more about the ins/outs of landlording and investing.
Property Details:
The home is in an established neighborhood in a Tampa suburb, where most of the homes were built around 1990 and all have large lots (~.33 acre). The main home is a 4/2 @ 2100 sq ft. The ADU is a 1/1 @ 800 sq ft. The ADU has its own Lanai, W/D in unit, storage, private entry and potentially garage slot (see TBD).
To Do/Estimates:
- Roof: ~$17,000. Still getting quotes, but budgeted for full roof replacement.
-Paint: Painting walls/trim through entire property. We plan to DIY this starting the day we close.
-Privacy Fence: Add a fence down middle of back yard to provide full privacy for both 'tenants.'
-Privacy Fence: Add about 10 feet so the two windows from master BR are included in fenced yard.
-Pest Control: ~$800. Inspection found hints of mice/rats in attic. Getting quotes.
-Tree Trimming: $1200. Too much tree cover, plan to trim to extend life of new roof and keep cleaning easy.
-Carpet Replace in ADU BR.
-Carpet Install in Main Unit BRs (4). Main unit is mix of tile and stained concrete, since we will live there, we really want carpet in the bedrooms.
-Main Unit Kitchen (eventually): Cabined doors/drawer covers. Appliances. New Counter Top.
-Main Unit Floors (eventually): LVP/Tile (bathrooms)/Carpet (bedrooms)
-Main Unit Bathrooms (eventually): Both need new vanities/fixtures. Likely re-glazing 2 tubs and 1 shower, may re tile master shower. TBD.
TBD:
-Should we just replace the carpet in ADU BR (it's the only floor that needs to be replaced) or should we put LVP in the entire unit (requires tearing out tile in kitchen and bath)? We are leaning towards replacing BR carpet now, and full LVP during the first tenant turn. Would LVP now really make an impact on rent?
-Should we put a wall to section off the 3rd garage slot (which has door to access the side yard/private entrance for ADU) and allow the tenant to use for parking? I've got lots of tools/valuables that are stored in our garage, and eventually, the tenants who rent the main unit will probably like the separation, too. How much will that increase rent in both units?
-How to handle mail?
Numbers:
We are under contract at $275,000 and are using a conventional loan at 3% down.
Projected ADU Income: $1,000
Projected Main Unit Income: $1,650 (our current rent for a 3/2 @ 1900 sq ft in a similar location)
Minus Projected PITI: $2,100 (after we move out/no homestead)
Projected cash flow after we move out: $550 (minus repairs/vacancy)
Pics and updates coming after close!!