ADU development in San Diego
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $720,000
Cash invested: $250,000
ADU development on SFH property in cul-de-sac/ weird property layout that actually better fit as a duplex.
ADU size: 550 sqft (~$320/sqft) in 2020.
What made you interested in investing in this type of deal?
Lot size and location.
How did you find this deal and how did you negotiate it?
MLS. Negotiated with repairs.
How did you finance this deal?
Conventional loan. Refinanced after build out.
How did you add value to the deal?
Addition on top of garage, separate parking area for tenants, solar panels on shed style roof.
What was the outcome?
Successful build with tenants paying off the ADU in 8 years. Cashout refinanced it after construction being able to pull money out pretty immediately.
Lessons learned? Challenges?
Permitting through the pandemic was very painful
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Agent - Redfin.
Lender - local bank
@Michael Walker - very nice! We are drawing up plans to do the same at our property in CDA, ID. (600 SF
ADU on top of garage/shop). Do you have a photo of the outside that you can share?
We designed the shed-style roof to be south facing for two reasons: 1) It makes the ceilings 22 ft tall, making the space feel huge. 2.) The solar panels supply enough power for the ADU, the primary home, and 2 electric cars and future-proofed it for future developments.
Quote from @Michael Walker:
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $720,000
Cash invested: $250,000
ADU development on SFH property in cul-de-sac/ weird property layout that actually better fit as a duplex.
ADU size: 550 sqft (~$320/sqft) in 2020.
What made you interested in investing in this type of deal?
Lot size and location.
How did you find this deal and how did you negotiate it?
MLS. Negotiated with repairs.
How did you finance this deal?
Conventional loan. Refinanced after build out.
How did you add value to the deal?
Addition on top of garage, separate parking area for tenants, solar panels on shed style roof.
What was the outcome?
Successful build with tenants paying off the ADU in 8 years. Cashout refinanced it after construction being able to pull money out pretty immediately.
Lessons learned? Challenges?
Permitting through the pandemic was very painful
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Agent - Redfin.
Lender - local bank
Hey there- Congrats! Would be great to connect as I just purchased a SFH in Oceanside & plan to convert the attached garage to a JADU and build an attached ADU in the backyard later. Plan to rent the units eventually. Rents for 1 BRs in my area are $2200. Curious if you can recommend any ADU designers or contractors by the way. Thx so much!