This Real Estate HACK – ADUs (Accessory Dwelling Units)

The ADU House Hack – Accessory Dwelling Units are single-family homes that have converted extra living space into a rental unit.

With housing in short supply and the pandemic shifting real estate preferences, accessory dwelling units (ADUs) have seen a spike in popularity.

Accessory Dwelling Units (ADUs) are called many things: granny flats, in-law units, backyard cottages, secondary units, and more. Examples of ADUs are basement, garage apartment, in-law suite, on-site guest house, and more.

Building an ADU (legally) can be a great way to raise your property value and can also be a good way to dip your toe into the pool of real estate investing.

 

Hey what’s up guys! I’m gonna teach you guys a million dollar real estate hack in this video this has made me millions of dollars in my portfolio in terms of growth it’s paid our investors hundreds of thousands of dollars and at the end of this video. I’m going to teach you exactly how you can do the same check it out we are at the beaches of Columbus Ohio and the real estate hack.

I’m going to teach you is called ADU’s accessory dwelling units as you can see behind me it is essentially a glorified garage all right it’s where you are able to build an accessory dwelling unit at your current property whether it’s primary residence or whether it’s an investment property an accessory dwelling unit is also known as a carriage house a mother-in-law suite and the reason why they are great investments short term and long term is number one it adds value to the current property right.

So if you have a primary residence that you live in and there’s a garage there based on you know zoning and permits and whatnot with your local government and city you can you know knock that knock that garage down and build a one or two bedroom apartment above it and that could be an office or that could be an additional bedroom that you can rent out on Airbnb or you can even get long-term tenants in there right.

You may have family friends somebody that wants to rent at an affordable price point right you could rent it out for a thousand or fifteen hundred dollars a month and they may not be able to find that in the location that they’re in because there’s obviously a massive affordability crisis so I’m walking up to our our unit right now the house itself we acquired for about 425,000.

We put about 15 000 of miscellaneous work throughout the property painting the walls new hardware we just you know spruced it up if you will right we modernized the paint as before it was just an older gentleman that owned the home and took great care of it but ultimately what we were able to do is we were all in around more mid 400,000 and once the project was done in about 30 days we went back to get it appraised and it was worth over six hundred thousand dollars.

So we 100 financed it by raising private money and I have videos on how you guys can raise private money and links below as well where we educate in our private groups in our different consulting programs how you can use OPM whether it’s business credit raising money etc. but ultimately I went back to the bank after a couple months of the project and get everything solidified and going through the refinance process and the bank valued at over 600,000.

So not only was I able to pull essentially all my capital back and pay our investors a double-digit return in just a matter of a couple months but also in that refinance I was able to secure a construction loan to cover the cost right here that you can see behind me to build what is called again an accessory dwelling unit I like to call it a carriage house again you can call a mother-in-law suite but check it out right behind me.

You can see all of these other properties in the area have them as well because again it’s a great way for you to add value to your current property and have additional living space or again what we’re doing is we are using the main house as a short-term rental so we’re cash flowing over sixty thousand dollars a year on the house alone and then we’ll be able to bring in an additional you know two to four thousand dollars a month depending on the hot season versus you know when things kind of cool off here in Columbus.

Where there’s not as many events and people traveling here but ultimately our projections and our data shows on Airbnb and there’s links below with resources how you can calculate what you think your room’s going to be and also I have an entire Airbnb program teaching people how to 100 finance their next deal whether they use their own cash or use other people’s money also you don’t even have to own properties to get into Airbnb.

I think Airbnb’s are one of the best if not the best way to start and scale a real estate portfolio but ultimately we we turned that property from a low to mid 400,000 property to now once that is built right as you can see we just got done with demo we had tenants in there for the Airbnb and in the next about four months it’ll be built it’ll be stabilized everything will be completed and that property is going to be worth over 800,000.

So we’re going to be able to refinance again pull out more capital tax free and we increased the the overall value by over a hundred percent and we’re able to turn the cash flow from being able to previously rent it out for three to four thousand dollars to that property alone is going to be bringing in over 8 000 a month so over a 30-year period we’re going to be making over a million dollars on that property alone without touching our own cash.

Again you guys can do the same we have different consulting programs we have an Airbnb program that can teach you again how to find deals how to fund deals and we even manage it for you and share all the systems processes and automations on how to get started most people never get started in real estate because they don’t have the time they don’t have the money and they think they have to have all this experience.

Well guess what I share all my successes and failures things I wish I would have done differently things that did very well to scale an eight figure portfolio and again we want to help you guys out so drop a comment below if you guys are interested and we’ll contact you and again there’s links below this video check it out check out the the accessory dwelling units I think it’s a great way to add value to your current portfolio I want to see you guys here on the next video and subscribe to my channel if you guys want to learn more about real estate and ultimately how to build generational wealth.

Published On: October 13, 2021 / Categories: How Tos / Tags: , , , , /