Single Family Home with accessory Dwelling Unit Build Out
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $350,000
Cash invested: $70,000
SFH with tons of deferred updates and zoned for an additional dwelling unit (ADU). The goal at purchase was to house hack and convert the detached four car garage into a 2/1 ADU.
Once done the project should comp out >500K and the ADU should rent for between 1500 and 1700 which will cover the bulk of my mortgage. Let me know if you have any questions.
What made you interested in investing in this type of deal?
I was having trouble finding a multifamily that would meet the 1% rule.
How did you find this deal and how did you negotiate it?
Studied city zoning.
How did you finance this deal?
Conventional loan followed by construction loan and will cash out refinance at the end
How did you add value to the deal?
Built and ADU
Lessons learned? Challenges?
Political winds change and can make life hard. Stick with multi-family that is already built.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Collegiate Peaks Bank for the construction loan