How to calculate ARV if adding an ADU?

How to calculate ARV if adding an ADU?

Real Estate Agent · Santa Clarita, CA · Member since 2009 · 36 posts · 2 votes

I'm looking at a small house with a big lot. The detached garage in the far back would be perfect for an ADU, but how do I determine the ARV of the property if I want to flip it with an ADU attached?

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  • Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    8y

    Putting an ADU on the property probably won't pay for itself in a flip. If you were going to hold as a rental I'd set your target cap rate and calculate the value that way.

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