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MEET THE

Young Family

3 Bedroom + 1 Bath
+ Income Generating ADU: 1 Bed + 1 Bath

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Renovation

Project Profile

PROJECT OVERVIEW

Purchase Price                  $130k

Appraised Value               $190k
                   -------------
Original Sale                     $55k

Closing Costs                   $2k

Renovation Costs             $65.5k

Income for Next Home    $10k

City Energy Rebates         –$3.4k

                   -------------

Labor Donation Value      $21.5k

In-Kind Material Value      $5k

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Renovating viable older homes makes accessible purchase prices. These older homes can have existing garages making the creation of income generating ADUs on the properties feasible.

In-reach purchase prices were made possible by the 3-tier subsidy system built on relationship.

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Donated
Labor

Most Contractors are paid at Fair Market rates. Contractors are chosen from as many local leader led companies as possible. Through existing relationships, many minority businesses are a part of the team. 

Labor donation comes through friends, family, church family, and willing local business providers. Identifying areas with smaller, defined scopes helps honor Contractors while creating big savings for the homeowner.

MINI SPLIT INSTALL

$8,000

FLOORING INSTALL

$4,500

DEMO, CRAWL SPACE

$2,000

ROOFING DISCOUNT

$2,000

FENCLINE INSTALL

FRAMING + FINISH

$1,000

$4,000

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In-Kind
Materials

B-Grade, overstock, Habitat for Humanity®. There are many creative sources for materials. 

 

One of our favorites is working with Renovators and Home Builders to reuse perfectly good materials they will throw away. We solve a business problem, connect diverse portions of our community, and drive down Purchase Prices for soon-to-be Homeowners. 
 

Vanities

Cabinets

Showers & Tubs

Lumber

Flooring

Door Slabs

Windows

Fixtures

Appliances

and much more ...

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Benevolent Investors

The key to this whole puzzle has been the willingness of some to take modest, fixed rate returns on funds. These resources could otherwise be deployed for higher yields.

 

However, the return on community transformation is driving some to recognize the yield 

 

$20K
Collateral

5% Fixed 
Return*

*Based on 2022 interest rates.

Specific to this project. Needed investment changes per project.

How ADUs 
Bridge the Gap

Not familiar with this acronym? We weren't either. 

An ADU is an Accessory Dwelling Unit. Essentially, it is a secondary residence on a property that is accessory to (smaller than) the primary residence. It cannot be sold separately from the primary house. This creates unique income sources for new Homeowners and limited impact density. 

Finanicial 
Stability

The creation of a secondary dwellings makes a "little landlord" out of new homeowners. This offsets mortgage or future renovation costs. 

It also qualifies some homeowners for home loans they could not otherwise access (75% of the rental income can be counted towards Bank income qualifications). 

Equity Creation

Building through the economy of scale allows additional unit(s) to be added at a significantly decreased cost.

The addition of an income generating, secondary dwelling on-property creates massive infusions into home equity from day one of ownership. This is a key way to overcome generational and systematic struggles in wealth creation.

Local Leader Experts

Diversity begets diversity. 
The best way to create housing for our City's diversity is to empower diverse landlords.

The most compassionate landlords apt to help is those who have been there, lived that. They understand and help others needing access to affordable housing much more readily. 

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Learn more from our one of our passionate partners.