Case Studies

Finance • Build • Rent • Prosper

Case Study 1: Single-family homeowner builds 800 sq ft detached ADU

  • Client: Homeowner in Menlo Park (single-family lot)
  • Scope: Detached 2-bed, 2-bath ~800 sq ft ADU in backyard
  • Total cost estimate: $400,000
  • Structure: 100% financed over 30 years
  • Monthly financing cost (over 30yrs): $2,650/month
  • Projected rental income: $3,500/month (long-term lease market)
  • Cash-flow: +$850/month after financing payments

Outcome: Homeowner pays no upfront cash, adds $10K+/year pre-tax rental income, plus an ADU worth ~$400K.

Highlights:

  • Full permit process handled
  • Turnkey rental ready

Case Study 2: Homeowner pays cash for drawings/permits, uses our build + financing for large home addition

  • Client: Homeowner in Palo Alto with existing designs & permit-ready multi-unit addition
  • Scope: Build two additional small houses (multi-unit)
  • Total cost estimate: ~$1,400,000 (construction + finishes)
  • Structure: Owner pays ~$150,000 up-front for permits/drawings; we finance ~$1,250,000 for construction
  • Monthly financing cost (over 30yrs): ~$8,000/month
  • Projected rental income: Two units at ~$4,200/month each → ~$8,400/month total
  • Cash-flow: Net positive after debt service of ~$400/month

Outcome: Rental income covers financing costs and provides modest positive cash flow; owner retains upside from appreciation.

Highlights:

  • Streamlined construction management
  • Multiple units increase scale and rental yield
  • We handle inspections and city coordination
  • Owner funds drawings/permits to reduce risk and keep leverage moderate
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