Updated almost 3 years ago on . Most recent reply
House Hacking and ADU Build
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $306,500
Cash invested: $78,000
House Hacking / Live in Flip
Asking Price: 319,999
Main House Rehab: $8000
Conventional 5% down
PITI: $1680
Main House Rent: $2050
*DETACHED 725 SQFT ADU BUILD* (OWNER BUILDER)
2 Bed 1 Bath, Washer & Dryer, Private yard and Entry
Grand Total Cost to Build: $70,000 (Plans, Permits, Construction, Fees, Etc.)
ADU Rent: $ 2100
What made you interested in investing in this type of deal?
Cheap price, sweat equity, large lot for detached ADU build, first full rehab project.
How did you find this deal and how did you negotiate it?
Found it on Realtor.com searching for properties that have been sitting on the market the longest when rates were at an all-time low.
How did you finance this deal?
Conventional Loan
How did you add value to the deal?
Full rehab down to the studs.
Built an Income generating ADU in the backyard.
1930's house looking like a 2020 house.
200 amp panel upgrade
What was the outcome?
long-term cash flow and another step closer to financial freedom
Lessons learned? Challenges?
Lack of comps for properties with ADUs
Had to leave money used to build the ADU in the deal (for now)
Flipping the home made me realize how much I enjoy working on houses and how rewarding it feels to look at my creation.
It was tough to find a house where I didn't have to pay over asking when rates were at 2.75%, so I learned to look at homes that have been sitting on the market the longest is beneficial, especially in a hot market where homes usually sell within days.
