And watch the comparable data from St.

Hi BP friends,I’m totally new to building and real estate investing, and would really appreciate your thoughts on building an ADU in Torrance, SoCal.My property:Lot: 7,800 sqftMain house: 1,700 sqft, 4B3BMain house Includes a 1B1B in-law suite with a separate entrance, connected to the main living areaThe area:Torrance median sale price: ~$1.02MMy home is in Northeast Torrance— a more affordable part of the city compared to West and South TorranceSchools are solid (ratings 9/7/9)My plan:convert current 2-car garage to one-car garage, and build 1B1B ADU (700 sqft)Designed with vaulted ceiling + great natural light (stronger interior feel than most local ADUs)Budget: $175K (ADU) + $80K (lot landscape)Build time: 8 monthsEstimated rent: $2,300/moCan do long term or mid-term rental (20 min to 3 medical centers), no short-termROI looks strong and easier to manage locally than out-of-state investingLocal ADU = lower management cost + easier eviction if issues come upMy questions:A few years ago I saw posts saying banks appraise ADUs below build cost, making it hard to pull the equity out or sell — is that still true today?

A great place to start.It depends where are you looking for, rentometer and zillow are sort of accurate in areas with enough similar comparables, if that is not your case, you have to rely more on look property by property to see if those are similar than yours.As agents we have access to history so that sometimes helps, if you have one, I would say to rely on his/her data.Investing is a very analytic job so I always recommend to run your number even when you have someone that is helping you.

You’ll stay “legal”, have most repairs finished the day the tenant calls them in, and tenants tend to treat PMs like professionals compared to mom&pop landlords.

Since you’re looking in the Columbus, Ohio area, you’ll find the market really favorable right now—land prices and construction costs are still reasonable compared to other metros, demand for rentals is strong, and the macroeconomics are on fire with tons of population growth, job growth, and major companies like Intel, Amazon, Google, Facebook, Microsoft, Honda, and LG moving and developing here.

They are not truly as inexpensive as their names (Dollar) implies compared to Walmart.5. 

Then buy what they're willing and able to rent.If the tenant segment is stable and the days to rent for comparable units are reasonable — the duplex likely works long term.If the tenant base is transient, stretched financially, or oversupplied — the math may look fine today but degrade quickly.Before debating cap rate, I’d want clarity on who exactly lives here — and why they stay.Curious what the dominant tenant profile looks like in this submarket.

Many of our areas have lower prices this November when compared to last November.

It's all about comparing the loan amount to the property's appraised value.

You will get the best rates, the lowest down payment, you will live cheaper than the comparable place that is not a house hack, and you will get real world expierece managing tenants.