I got a call a couple of weeks ago from a friend who I had not spoken with in a while. He was into a project, and called for advice.
Three years ago we helped him purchase a home in the Arbor Lodge neighborhood for around $270,000. He recently re-financed and learned from his appraisal that his home has appreciated by at least $100,000. My friend's idea is to invest this equity into an ADU (Accessory Dwelling Unit) in the back yard to that he will rent out. By my calculations the rent he will collect from the rental unit will cover his entire PITI (principal, interest, taxes, and insurance) payment each month, enabling him to live for free! Pretty good use for the equity he has in his home, wouldn't you say?