The Best Way to Invest in Real Estate | Infill Housing with ADU | Part 1

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  • Опубліковано 26 січ 2024
  • The intent of this series is to share our favorite real estate investing strategy. We call it infill housing. We buy old houses, fix them up, rent them out and then build new detached units in the back yard. Consider it the BRRRR strategy with a new build added on. Think Build BRRRR.
    For more detailed instructions on this exact build, view the series below.
    How To Build an ADU with Cost Breakdown
    View the entire series here:
    • How To Build an ADU
    ADU Essentials
    Derek's 2023 Shopping Guide:
    thataduguy.com/wp-content/upl...
    How To Build a Loft Ladder: • How To Build A Custom ...
    Thank you for your emails, DM, comments and calls asking for longer videos with more detail. I plan to share progress every week as we build in real time.
    Look for property value others can not see. Be creative, consider land hacking.
    Follow along for all things ADU. This really is the most affordable housing option in most cases.
    I always tell people to consume the free information out there, it just takes more time. Most of what I do is open source and free for the taking. If you need one-on-one time with me, you can schedule a call at thatADUguy.com.
    If you are a first time buyer looking to get on the property ladder, my time is free for you! Just send me an email or comment below.
    #adu #adutour #diy #tinyhouse #thatADUguy
    Remember to keep it simple.
    Anyone can do this. You just need the right instruction, the right tools and the right mindset. Follow along here and check out thatADUguy.com for more ADU ideas and Q & A.
    About That ADU Guy
    Derek Sherrell is a real estate investor, ADU coach, and endurance athlete with 30 years experience in the building trade.
    Derek’s videos are all about the process of making home ownership affordable using the ADU strategy. In these short clips, he explains how to get started and offers money-saving tips you can use. Over time, he’ll walk you through the steps of how to plan, design, finance, and build ADUs (also known as granny flats, guest homes, cottages, casitas, or in-law units)
    Subscribe: bit.ly/3sAvbGX
    Follow @ThatADUguy on Instagram: / thataduguy
    Contact Derek:
    (541) 238-7073

КОМЕНТАРІ • 29

  • @aminvijan5893
    @aminvijan5893 5 місяців тому +1

    Excellent work Derek like usual. Thank you for posting and sharing your ideas and strategy. 2 families will be able to enjoy those cozy homes when you are all done. I learned a lot from you. Thank you!!

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому +1

      Hi Amin! Thanks for the support. Yes, looking to provide clean safe housing.

  • @user-uh2vx8rv5z
    @user-uh2vx8rv5z 5 місяців тому +1

    Wow! Amazing content, thank you! 🙏🏼

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому

      You're so welcome! Thanks Trever

  • @jasonpaulo2745
    @jasonpaulo2745 5 місяців тому +1

    Love the strategy!

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому +1

      So glad to hear other people are doing this too!

  • @ShadLambert
    @ShadLambert 5 місяців тому +1

    Ha, I always say alley access lots are the dream!! Finishing our ADU in Cali, been looking for future Oregon property to move closer to family someday thanks for the vids.

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому +1

      Yes, we love alleys. Congrats on your unit Shad! 🎉🎉🎉

  • @MarkSenatori
    @MarkSenatori 4 місяці тому +1

    How much do street improvements cost from your experience? Here in Sacramento county, I was told 65 linear feet of curb/gutter/sidewalk would run me 80-120k all in (engineering, approvals, and hard costs). Street improvements would be triggered by a lot split for a proposed duplex and duplex ADU.

    • @ThatADUGuy
      @ThatADUGuy  4 місяці тому +1

      Yes, cost are high. Those are realistic numbers. It REALLY pays to search for properties that already have them done.

  • @RF-ww5mp
    @RF-ww5mp 2 місяці тому +1

    To start my detached garage conversion.
    Do I need to hire an architect or a Jr drafter will do?
    Architect vs Jr. drafter charges?

    • @ThatADUGuy
      @ThatADUGuy  2 місяці тому +1

      I would shop around and use a drafter if possible. About half the price.

  • @foxpaw1
    @foxpaw1 5 місяців тому +1

    didn't know you could just have a detached bedroom... sans jadu or adu requirements.

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому +1

      Yes, many city/county rules spell it out. It is just like an addition, only not attached.

  • @a104917
    @a104917 5 місяців тому +1

    How do you solve the fire code issues with the detached structure so close?

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому

      It is legal existing so no mods needed. If so, we would just do a 1 hr fire wall. 2 layers of 5/8 type x rock and 2x blocking at eves under 12' high.

  • @TennisTD
    @TennisTD 5 місяців тому +2

    Why did you decide on a 1-1. Not a 2/1 or 2/2. Looks like you had more for more.

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому +3

      1/1s have a higher demand in our market. It is about building what tenants in our area want.

  • @scotts2181
    @scotts2181 5 місяців тому +2

    Wait what detached bedroom, you are always thinking outside the box, and house. Was the 30k equity gain based on an extra normal bedroom or an extra detached bedroom? Either way like you said the adu is where the meat on this deal is.

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому +2

      Yes, exactly. The 10x12 detached office is being permitted as legal living space. Just a bedroom.

    • @scotts2181
      @scotts2181 5 місяців тому +2

      Wow you’re quick, I meant you wouldn’t take a 2 bed with a detached 3rd bed a use comps in the neighborhood that are true 3 beds right? Or when you refi. do that not even look to see it’s a detached 3rd bed?

    • @scotts2181
      @scotts2181 5 місяців тому +2

      They not that*

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому +2

      @@scotts2181 it may not get exact 3/2 comp but will get good added value based on the added permitted square footage.

  • @joe61499
    @joe61499 Місяць тому +1

    Do you get your properties off market or off the MLS?

    • @ThatADUGuy
      @ThatADUGuy  Місяць тому +2

      Both, but mostly off market.

  • @kylenardon900
    @kylenardon900 5 місяців тому +1

    Do you have to split the lot to rent both the house and ADU separate?

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому +1

      No. There is no residency requirement for ADUs in our state.

    • @kylenardon900
      @kylenardon900 5 місяців тому +1

      @@ThatADUGuy thank you! Great video. Very concise and informative.

    • @ThatADUGuy
      @ThatADUGuy  5 місяців тому

      @@kylenardon900 thanks for the kind words, glad it is helping you. I plan to put out an updated video every week or so to show the entire process.