All Forum Posts by: Tanner Marsey

Pretty much the stuff that has been discussed in this thread. Along with personal reasons IE living with tenant. The fact that a dwelling with an ADU wouldn't be eligible for traditional financing is huge. Just a new area that I haven't fully explored and broken down. Like everything else... if the numbers work and all the other factors at play are good in your opinion.... go for it!

Not saying there isn’t money to be made because their definitely is. Personally, I just don’t know if it’s worth it. 

I'm not quite sold on the ADU in existing space of SFHs. Conventional buyers of SFHs are usually looking for two things.... a garage and a yard. After financing the build of the ADU, dealing with tenants and everything that comes along with that, sacrificing your own space if you occupy the home and the decreased value of your property due to the fact that there is no longer a garage or a good portion of outdoor space is taken up by this ADU.... I don't know if the juice is worth the squeeze.

Determine what you’re looking for as far as immediate cash flow vs appreciation and future cashflow. That will tell you where to park your money. Also, no reason not to entertain/pursue both. A property in so cal that you hold long term, have the tenant pay down the mortgage and appreciates will far out weigh any return you’ll see in the mid west/south. A few hundred bucks per door is nothing compared to 100s of thousands of dollars in appreciation.

 Immediate Cash flow is very far down on my list of reasons to purchase rentals. I am more interested in the diversification, debt paydown, and appreciation. I’m looking to reap the benefits of investing 20ish + years from now. So that makes it a bit more of an issue for me. If cash flow was my goal it’d be a no brainer. 

And this is my only qualm with picking something off the MLS. My professional career as well as another business I have are keeping me very busy to the point where it would be 100x easier to pick something rent ready off the MLS and buy it as opposed to an off market deal with even a cosmetic rehab. But with the capital I have now... playing it smart might be the difference between obtaining two properties or four which in the grand scheme of things is a large chunk of money.

@Luke Reninger

Good point.... having options is always nice.

Does it really matter if you pay retail and buy via MLS?

Thoughts?

Sell them and use the profits for something more passive. Lend the funds or toss them in a syndication deal. With that kind of money you should be able to realize a good chunk of income per year and have little to no headaches.

1. It’s price.

2. Photos but still, ultimately, price.

3. You’re stepping over dollars to pick up times. Hire a professional to sell these places. You have multiple places for sale. Find a good agent, negotiate commission and get these properties sold. Quick. Slow season is approaching rapidly.