3 ms·

this is hilarious. What idiot is paying $400,000 for a 540 sqft prefab house.

• googlryas 4y ago
  (I think) Their ideal buyer is someone who owns a home in a high CoL area(purchased when housing was much cheaper), who doesn't have a major other source of income, and who wants to plop an ADU on their property and earn some rental income without inviting roommates into their house. In that sense, they want you to think of the cashflow opportunities, not the overall cost. You're not supposed to think this is $400k, you're supposed to think "I'll earn $1000/mo from renters if I buy this".
  • alistairSH 4y ago
    You just described a retiree in CA. Except, they don't have income and are probably cash-strapped. And they're old. Unless they have an existing HELOC, they aren't going to be able to finance a $400k+ ADU ($400k for the prefab unit, unclear if that exclusive of installation/foundation/etc).
  • Ancapistani 4y ago
    If you’re savvy enough to think in terms of cashflow, you’re savvy enough to realize that you’d be earning $2000/mo if you went with literally the first contractor that called you back.