- Jun 18, 2003
- Professional Status
- Certified Residential Appraiser
$48k less and additional $3,300, minimum addition to the property taxes, plus being a landlord with all the "tenants and toilets" issues. A year to get it done.I am working on a sale of a 2400 SF house on a steep uphill lot. The seller is the RE agent and said he considered building an ADU at the top of the lot. No idea where he got his figures, but he said would cost ~$300k to build and rent for about $4k. Does not sound like a bad return on investment, but he decided to sell. Price is ~$1.9Mil.
I don't know what the pre-sale tax base year tax was but say the new owner wanted to make the same decision. New tax bill would be $24k with a gross rent income from the ADU of $48k. Cuts the tax bill in half.
Would the granny unit get an extra $300k on the sale of the property?
TOP of the slope? Commanding view of the LA basin, ocean and Catalina? AirBnB instead of a full time MTM.