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2 million Dollars in 15 years with only 200k Accessory Dwelling Units (ADU)

How to convert your 600k property to 2 million Dollars in 15 years.

What to do when you own a 600k property and wanting to cash out? Let's talk about it here. It is a dream for many people in Americans to retire with a few million dollars by the age of 60. Most Americans by the age of 40 will probably own a home between 400,000-800,000. So how do you save 2,000,000 dollars and retire by 55? That means they would need to save 66,667 per year for 15 years at the age of 40 and that equates to 5,555 a month. These numbers seem highly unlikely, even with a dual income. One of the best investments is with your own property. You add a little bit to your property, and it will give you high returns in the long run. Such as fixing up your land, interior, adding more space, creating additional dwelling units, granny flats, new room addition etc.

Example 15 years ago a property in Baldwin Park California would be around 350k. Today's market value is about 600k. Now let’s do the math and follow inflation. That same property will be 1.1 million dollars in 15 years from now. Going back to the original question is... How do we get 2 million dollars from this property. Here is the answer. Add an ADU unit that is at least 1000 sq ft to the lot. This unit alone will be probably cost you another 200,000k, but that is all. If you don't have the money then there are lending options. If you add this new addition to your lot, in 15 years you will be able to sell the entire lot for 2 million dollars at least. You will get $500 - $600 a square feet when the house is completed. Your house price will soar. Here are the numbers

Present Time

600K Current Value

200K Cost to Build ADU

After Construction of House Additions

600k Current Value

450K Value Estimate After Build

If you are not sure where to get these numbers, then please check a real estate website and get the value per square feet for your house. It will range from 400-600 per square feet. Combine the total square foot and multiply that by estimate value square foot listed on the site. That equation will calculate your property value.

Conclusion - Present Time

Total House Estimate 1.05 million Current, After Completion of Addition.

15 Years from now with 90% increase inflation

Year 2037

House Value $2,000,000

Only costing you 200,000 to build addition to your land.

You see the math, projection and possible opportunities? It is a wonderful time now to build additions since California Law is allow us to do so. Please take advantage of these new great findings. Message me if you have any questions regarding this. As I will gladly go over any details

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