Post & Beam Barn Conversion to Accessory Dwelling Unit at my Primary Residence

[Craig Estes]

Investment Info:

Other other investment.

Purchase price: $212,000
Cash invested: $4,000

I developed a Post & Beam Barn into an Accessory Dwelling Unit at my Primary Residence.

What made you interested in investing in this type of deal?

Unused space, experience, cash flow, opportunity.

How did you find this deal and how did you negotiate it?

I currently rent other units and saw the potential and executed.

How did you finance this deal?

HELOC

How did you add value to the deal?

A lot of sweat equity. Mid to high end finishes and I did a lot of leg work in ensuring that the barn was prepared to have a second ADO constructed. The upstairs unit is complete and the downstairs unit only needs finish work.

What was the outcome?

$800 per month cash flow!

Lessons learned? Challenges?

Retrofitting and complying with todays building code is hard and takes very thorough planning to ensure you do not blow up your budget! Proper planning mitigates the inherent and very real risks of property investing.