All Forum Posts by: J Kilroy

ADUs additions in single family zoned areas add less value than the hands off cost of the ADU addition. You will likely get what you consider a poor valuation from any appraiser that a lender will use. Small units in single count are expensive development.

The negative equity position is one reason (there are many reasons) why adding an ADU is one of the worse RE investments.

Good luck

Thank you for the insight. I had not considered the valuation could be that low. I realized we would not get the same valuation as the main home but at $130k for 440sq ft I did not realize we could be in a negative equity position.

0 Votes

San Diego, California

Does anyone have a recommendation for a lender that values ADU's in CA "accurately"?

We completed our ADU earlier this year at our primary residence and it has been a great cash flowing investment. We used a HELOC from First Bank and they were great to work with in getting us a HELOC at a great rate. We would now like to increase our access to cash via a HELOC that incorporates the new ADU in the appraisal. In talking to First Bank they are not able to tell me if the ADU will add value to our home when being appraised so I am looking at other lenders.

2 Votes

San Diego, California

Following because I am looking at a similar scenario in the future after finishing an addition on my home. Hopefully someones chimes in.

0 Votes

All Forum Posts by: J Kilroy

J Kilroy has started 1 posts and replied 4 times.

Post: Lenders that appraise ADUs accurately so I can increase my HELOC?

Post: Lenders that appraise ADUs accurately so I can increase my HELOC?

Post: Lenders that appraise ADUs accurately so I can increase my HELOC?

Post: Redo HELOC as property value increased