What does it really cost to build an ADU, and is the investment worth it?

In this episode of the Monopoly Life Podcast, Sergio Hernandez and Omar A. Martinez break down the actual numbers behind their ADU project in Orange, California.

We converted existing garage space and added additional square footage to create two studio apartments totaling approximately 500 square feet. Our total investment, including plans, permits, and construction, came out to approximately $125,000, or $250 per square foot.

Today, those two studios generate $3,500 a month in combined rental income.

But there's more to the story than construction costs and collecting rent.

We discuss how we financed the project using home equity, the challenges we encountered, and the additional expenses homeowners need to consider, including higher insurance premiums, property taxes, utilities, and ongoing maintenance.

We also share how the property's location near CHOC Hospital, Chapman University, and Old Towne Orange played a role in our investment decision.

If you've ever considered building an ADU, converting your garage, or creating additional rental income from a property you already own, this episode gives you a firsthand look at the numbers and lessons we learned along the way.

Real conversations about money, real estate, business and building a life you actually want.

Have questions about financing an ADU or using your home's equity? Call or message us to discuss your options.

Follow Sergio on Instagram: @iamsergiohernandez

Sergio Hernandez

NMLS #108378 | DRE# 01190068

Omar A. Martinez

NMLS #108525 | DRE# 01290170

Rental income represents gross rent before operating expenses, financing costs, vacancies, and maintenance. Individual project costs and financial results will vary.

Hosted by:

Sergio Hernandez
DRE#01190068 | NMLS# 108378
Instagram

Omar A. Martinez
DRE# 01290170 | NMLS#108525
Instagram

All information is for informational purposes.

Thinking about building an ADU? One of the biggest decisions you will make is choosing the right contractor.

In this episode of the Monopoly Life Podcast, Sergio Hernandez and Omar A. Martinez go deeper into the ADU conversation and talk about what homeowners should know before hiring someone to build.

We cover what questions to ask, how to compare bids, what to look for in a contractor agreement, why the lowest price is not always the best price, how change orders can affect your budget, and some of the lessons we learned from going through the process ourselves.

This is not theory. It is based on real experience, real mistakes, and things we wish we had known before starting.

If you are considering an ADU, renovation, or major construction project, this episode can help you ask better questions and make a more informed decision before signing a contract.

Monopoly Life is about real conversations about money, real estate, business and building a life you actually want.

Follow Sergio:
Instagram: @iamsergiohernandez
YouTube: @sergiohome

Sergio Hernandez
NMLS #108378 | DRE# 01190068

Omar A. Martinez
NMLS #108525 | DRE# 01290170

Hosted by:

Sergio Hernandez
DRE#01190068 | NMLS# 108378
Instagram

Omar A. Martinez
DRE# 01290170 | NMLS#108525
Instagram

All information is for informational purposes.

In this episode of the Monopoly Life Podcast, we take you behind the scenes of our real-life ADU project in Orange, California.

We talk about why we decided to build, what the process actually looked like, the challenges we ran into, the money side of the project, and the lessons we learned along the way.

If you have ever thought about building an ADU, creating rental income, or simply getting more out of the real estate you already own, this episode gives you a practical look at what to expect.

No theory. No sales pitch. Just a real conversation about what worked, what did not, and what we would do differently next time.

Monopoly Life is about real conversations about money, real estate, business, and building a life you actually want.

Hosted by:

Sergio Hernandez
DRE#01190068 | NMLS# 108378
Instagram

Omar A. Martinez
DRE# 01290170 | NMLS#108525
Instagram

All information is for informational purposes.

Buying a home is a monumental milestone, but let’s face it—it’s also one of the most stressful experiences you’ll encounter. In this episode, we dive into practical steps you can take to alleviate some of that pressure and navigate the home-buying process with confidence. From getting a financial fitness check to choosing the right real estate agent and assembling a solid professional team, these actionable tips will help you stay ahead of the game. Learn how to set realistic expectations, avoid common pitfalls, and ensure a smoother journey toward your dream home.

Whether you’re planning to buy a home in the next 3 months or 12 months, this episode is packed with valuable insights tailored just for you. Don’t forget to subscribe for more tips and strategies on all things real estate!

Hosted by:

Sergio Hernandez
DRE#01190068 | NMLS# 108378
Instagram

Omar A. Martinez
DRE# 01290170 | NMLS#108525
Instagram

All information is for informational purposes.

Are you looking to tap into the equity of your rental property without the hassle of traditional lending? In this episode, mortgage expert Sergio Hernandez introduces the DSCR (Debt Service Coverage Ratio) Cash-Out Loan, a game-changing solution for property investors. Whether you're self-employed, unable to show traditional income or want a faster way to access your home equity, this loan offers a streamlined option with no income or employment verification required.

We break down the key features of this loan, including loan amounts up to $3.5 million, eligibility for properties up to 4 units, and how your rental income can help you qualify. Learn how DSCR Cash-Out Loans can offer flexible options with interest-only payments and more. Plus, we’ll explore scenarios where investors use this loan to expand portfolios, make home improvements, or consolidate debt.

If you're an investor in California or Colorado, this episode is essential listening. Discover if this innovative loan option can help you access the funds you need without jumping through hoops. Tune in and start unlocking your real estate potential today!

Hosted by:

Sergio Hernandez
DRE#01190068 | NMLS# 108378
Instagram

Omar A. Martinez
DRE# 01290170 | NMLS#108525
Instagram

All information is for informational purposes.

In this episode, we dive into the true cost of homeownership in California. With skyrocketing prices and tightening lending guidelines, is buying a home still within reach? Join us as we break down the numbers for a median-priced home in California, explore the required income and down payment, and discuss the impact of factors like mortgage insurance, taxes, and homeowner’s insurance. We also share creative strategies to make homeownership more affordable, including ADU rentals and down payment assistance programs. Whether you're a first-time buyer or planning ahead, this episode offers practical advice and insight to help you on your homeownership journey.

Tune in, and find out if owning a home in California is possible for you today!

Hosted by:

Sergio Hernandez
DRE#01190068 | NMLS# 108378
Instagram

Omar A. Martinez
DRE# 01290170 | NMLS#108525
Instagram

All information is for informational purposes.

In this episode, we dive into the recent NAR settlement and what it means for homebuyers in 2024. From potential commission changes to new Buyer’s Agreement Disclosures, these developments could have a significant impact on your home-buying experience and your budget. Learn how to navigate these changes, what to watch out for, and how to protect yourself from costly mistakes. Whether you’re a first-time homebuyer or a seasoned investor, staying informed is key in today’s shifting real estate landscape.

Hosted by:

Sergio Hernandez
DRE#01190068 | NMLS# 108378
Instagram

Omar A. Martinez
DRE# 01290170 | NMLS#108525
Instagram

All information is for informational purposes.

In this episode of Monopoly Life, we tackle a crucial question: "Are you buying a home for the right reasons?" Join hosts Omar Martinez and Sergio as they dive deep into the mindset and practical considerations behind home buying. With insights drawn from years of industry experience, they address common concerns such as market timing, financial readiness, and the emotional aspects of making one of the biggest decisions of your life. Whether you're worried about market bubbles, navigating opinions from friends and family, or simply wondering if now is the right time for you, this episode offers valuable guidance and perspectives. Tune in to gain clarity and confidence in your home-buying journey.

Hosted by:

Sergio Hernandez
DRE#01190068 | NMLS# 108378
Instagram

Omar A. Martinez
DRE# 01290170 | NMLS#108525
Instagram

All information is for informational purposes.