Updated over 3 years ago on .
Adding an ADU to our Primary
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $430,000
Cash invested: $120,000
We are building an ADU to STR.
What made you interested in investing in this type of deal?
The market appreciated rapidly and we realized we couldn't buy a property that we liked with an ADU. We decided to cash out refi and build the house we wanted.
How did you find this deal and how did you negotiate it?
We bought this pre-pandemic. The house needed a lot of work but, with the land and a pool already there, we were sold! Plus, it is an A neighborhood.
How did you finance this deal?
Primary, conventional cash out refi
How did you add value to the deal?
Remodeling whole house, adding adu
What was the outcome?
Still in progress but, I think we will crush it in STR
Lessons learned? Challenges?
New construction is its own beast