The ADU That Pays For Itself in San Diego!

This blog post informs San Diego homeowners about the most strategic new ADU financing option available. It is now possible for qualifying homeowners to get a fully financed ADU with zero out-of-pocket payments and receive guaranteed rental income in as little as 18 months!

What is driving the demand for Accessory Dwelling Units?

By: Eliana Lerma

Whether you are a homeowner, renter, or realtor, Accessory Dwelling Units (ADUs) have proved their benefit everyone in a community. With their many benefits, the influx of ADU projects is no surprise, particularly in states like California, where the property has high value and comes in limited supply. ADUs are well-positioned to meet a variety of needs for individuals and communities. They have opened a new avenue for homeowners to leverage their owned property and take their investment opportunities to new heights!

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What are some ADU benefits?

ADUs can provide property owners extra income! Building an ADU isn’t as expensive and time-consuming as building a traditional house, and the potential rent generated from the ADU is proportionally greater when you compare the income per square foot. ADUs tend to lease quickly and do not require as much maintenance.
ADUs are convenient to manage! Given the unit’s proximity to the main home, an ADU is easier to manage than a separate rental property or apartment complex. The property owner can be the manager or pay a small management fee for those services.
ADUs make your property more valuable! Most prospective homeowners are willing to pay more for a home with an ADU on the parcel because of the income value that extra space has the potential to bring. Read here for an in-depth study on ADUs and property value.
ADUs can house aging relatives, adult children, and caretakers! Many of our clients find ADUs an investment utilized by loved ones. Garage conversion ADUs are a popular option to keep the family close.

The ADU financing problem many homeowners face:

When guiding our homeowners through a project, the main concern we have seen is project financing. There are so financing options that only cover part of the project or have lending limitations of $100,000. Though you might have high hopes that your ADU will not exceed the cost of $100,000, that is not a realistic budget, especially in Southern California, where labor and materials are at an all-time high following the pandemic.

We found a solution for San Diego Homeowners!

If you live in San Diego, we have found an ADU financing option that requires no out-of-pocket payments. This financing is divided into two separate loans: Loan #1 is an unsecured loan covering 30-40% of the total cost. Loan #2 is a secured loan that will cover the rest of the project. This could be a mortgage loan and/or cash-out refinance loan to cover the entire project amount and is deferred up to 24 months, allowing the income generated from the ADU to offset the project payments.

We can even guarantee rental income from your new space in as little as 18 months! Our ADU experts will guide you through your entire ADU construction journey, from feasibility, through financing, design, construction, all the way until your new space is leased to a paying tenant!

Here’s how it works!

1. Make sure your project is feasible – Check out your local ADU rules and regulations before breaking ground. MultiTaskr can run a pre-feasibility study with your address to see if this project is possible.

2. Check your property’s condition – Prepare your site for construction with our Home Diagnostic Report (HDR), capturing 2D and 3D imaging of the interior and exterior space and analyzing the rest of the property data from the space that will be renovated.

3. Design and organize your project – This is the part you’ve been waiting for! Receive our Project Development Plan (PDP) for a project estimate, a digital rendering of your design, finishes/materials lists, and the full scope of work necessary to get the job done right. You can even visit our office in Chula Vista to virtually tour your future project using the latest virtual reality technology.

4. ADU Permitting – Once your ADU design is defined, we will draft and submit your permit drawings and manage the permits with your city’s planning department for project approval!

5. Receive Loan #1 – This loan amount will cover the preconstruction work of your project, allowing all service providers the budget necessary to complete preconstruction as soon as possible.

6. Construction Begins – With the help of MultiTaskr’s PDP, contractors and service providers will stay within your overall budget and timeline.

7. Receive Loan #2 – The second loan amount will cover the remaining costs to complete your new space accurately to your design and finishing choices, ensuring the project matches your exact vision.

8. Lease out the space – Once the project is complete, we will assist you through this process. ADUs are legally rentable units, so you can earn income from your property that lasts a lifetime!

Now that you are an expert in the step-by-step process let’s look at the many benefits of this ADU Financing Option!

Never pay out of pocket – Homeowners do not have to pay any money out of pocket if they do not wish to. The rental income generated from the unit will come in time to offset the project payments
Earn Rental Income – Homeowners looking to generate additional revenue often choose to lease the new ADU as a fully functional apartment and can generate (at minimum) the average comparable rental price in the same zip code.
Increase Property Value – Building an ADU adds to the current value of your property. This is a fantastic way to increase your home’s equity and overall value.
Create extra living space – Not looking to rent out the space? Use it as a guest house or transform it into a home office, gym, or studio!
Keep the family close – There’s no better place than home for your loved ones. ADUs accommodate every family member’s needs.
Reduce the Pressures of a Mortgage – Ready to pay off that mortgage? Take the fast track to financial freedom by using your ADU’s rental income to pay off your main home!

Now that you are an expert on the benefits of ADUs and this new financing option, you have everything you need to see if this is the right decision for your property investment goals. If an ADU is a project you see in your near future, we are here to make the process as easy and enjoyable as possible. Embarking on a project like this shouldn’t cost you a thing. That’s why we offer a free project consultation with one of our ADU experts, who will give you personalized guidance on your next steps! Getting started is free and requires no commitment on your end. Book a free ADU consultation today to be one step closer to your dream real estate investment!