Skip to main content

Anyone Refinanced after converting their garage to an ADU? (Los Angeles)

Hi All,

Shopping for a home in Hawthorne, CA with intention to convert garage to an ADU and rent it out on AirBnB.

Assuming it takes 6-8 months to complete (permits are taking 4 months due to covid) I was planning to get an appraisal and do a cashout refi to pay back some family members. Income is healthy and I'm not concerned about putting 6 months onto the back of a 30 year loan.

1) Equity in this town is growing at 45K every 6 months for the last 2 years. So there is that.

2) My main question is has anyone done this? Appraisals on ADU's are fairly unknown. I've seen simliar price per sq ft as homes suggested (but this isnt adding sq ft), some suggest comps which are few and far between, and ive seen projected rental income as a factor. The problem with this is I'm planning to refi before its even rented out for a month.

Has anyone been through this? Any idea on the value of the adu itself?

Any responses much appreciated!

​

**side note: homes are going for 900K so over the 822K conforming loan limit. This means a HELOC or construction loan wont make much sense because I'll have already maxed that out. That's part of the rationale for the refi.

submitted by /u/Key-Ad-535
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/lsniei/anyone_refinanced_after_converting_their_garage/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more