I am 60 YO. Living in the East Bay of NorCal. I have paid of the house. I am considering as my first real-estate investment to increase the size off the back of my 1st floor primary residential property ~750SF and add a ~750 SF 2nd story adjoining ADU above and convert my ~400 SF detached garage into a ADU studio. The plan would be to within the next 3-5 years move and turn the entire main house, adjoining 2nd story and detached ADU into a rental property for my retirement years. Does anybody have any experience, insight and advice with doing this type of House Hacking? Or would it be better to find an second investment property?
@Scott Williams thanks or the post. This is a common question for many investors (or would be investors). Usually when we speak to "what is best for me" it turns into a monetary discussion on what is actually possible. Now, some of this might be a personal discussion that's not very indicative in a public forum. So, a couple of theoretical questions:
Are you ok just moving to a new property? Because if so, that's only 5% down to buy another primary home. That's a pretty low cost committment.
Do you have any contractor bids to renovate your current home? If so, will you be financing it in cash? Or with a loan?
If you are using a new loan to finance, have you factored that in to your "cashflow equation"?
One of the bigger items I would say to think about is if you are using your own money for the renovations...sometimes it's a little hard to get that money back out of a property. Since you are so close to retirement age, I would think to try to keep as much of your money as possible.
Some of this might be WAY off base so feel free to reach ut if you want to talk anything through. Thanks!