Value Add With K&k

Thinking about building an ADU? There are some expensive mistakes you need to understand before you start construction.After funding more than 100 deals involving ADUs, Kenny Simpson has seen what can go wrong, from appraisals and construction costs to refinancing problems and properties that don't produce the value owners expected. In this week's The Brief, Kenny breaks down 7 ADU landmines every homeowner and real estate investor should understand:1. What are you actually building?Do the comps and rents support your plan?2. What will it really cost?Spending $350,000 doesn't automatically add $350,000 in property value.3. The appraisalADUs can be difficult to value, and the wrong appraisal can create major problems. 4. Your takeout loanDon't assume you'll automatically be able to refinance and pull your construction money back out.5. Selling the propertyThe market may not value your finished project the way you expected.6. Qualifying for financingDSCR, residential and commercial lenders c