roseville development
A rare income-generating compound + development play featuring two fully renovated homes on a ½-acre
Marketing description
.💰Projected Income Potential (Pro Forma)
Existing Homes Rental Estimates (Roseville Market):
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Main Home (3BR): ~$2,800–$3,200/mo
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Second Home (2BR): ~$1,900–$2,300/mo
👉Current Potential Gross Income: ~$4,700–$5,500/mo ~$56K–$66K annually👉
ADU Expansion (3 Units)
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2BR ADUs (~700 sq ft each)
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Estimated Rent: ~$1,800–$2,200/mo per unit
👉Additional Income: ~$5,400–$6,600/mo ~$65K–$79K annually👉
📈Stabilized Income (After ADU Build-Out)
👉Total Gross Rent: ~$10,100–$12,100/month 👉Annual Income: ~$121K–$145K
💡Development Advantage
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Estimated build cost: ~$440K total
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Contractor pricing: ~30% below market
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Deferred payment structure (pay upon completion)
This significantly reduces upfront capital risk and boosts ROI.👉
🧠Investment Strategies
1. Build & Hold (Best Long-Term Play)
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Create a 5-unit rental compound
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Strong appreciation + increasing rental demand in Roseville
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Ideal for 1031 exchange buyers or portfolio investors
2. SB9 Lot Split Strategy
Leverage California Senate Bill 9 to:
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Subdivide parcels
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Sell homes individually
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Unlock immediate equity arbitrage
3. Hybrid Strategy
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Build ADUs → stabilize rents
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Refinance → pull equity
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Sell portion or hold for cash flow
🏡Property Highlights
Fully renovated, turnkey homes✔ Gated 0.5-acre lot + additional parcel✔ Approved ADU plans (huge time savings)✔ Strong rental demand in Roseville✔ Ideal for multi-generational or co-living setup✔
🏠Residences
Main Home (1,600 Sq Ft)
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3 Bed / 2 Bath
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Updated kitchen + appliances
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Private yard
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In-unit laundry
Second Home (800 Sq Ft)
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2 Bed / 1 Bath
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Full kitchen + appliances
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In-unit laundry
What Would Make This Even Stronger🚀
If you're pitching serious investors, I recommend adding:
1. Cap Rate Example✅
Even a simple one:
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If purchase = $1.15000M
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NOI (after expenses) ≈ $43K Cap Rate ≈ 👉7.9% stabilized
2. Visual Site Plan✅
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Show layout of:
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Existing homes
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Future ADUs
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Investors LOVE spatial clarity
3. Exit Scenarios✅
Spell out:
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“Sell stabilized 5-unit at 6% cap = ~$1.6M+ valuation”
4. Timeline✅
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ADU permit: already approved ✅
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Build: ~6–8 months
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Stabilization: ~3 months
Investment highlights
Investment Highlights
1. Immediate Income + Forced Appreciation
- Two turnkey homes generating rental income from day one
- By-right expansion: 3 × 700 sq. ft. (2BR) ADUs ready to build
- Estimated construction cost: ~$440K total (≈30% below market)
- Deferred payment structure – no capital outlay until completion
2. Multiple High-Value Exit Strategies
- Build & Hold: Stabilize a 5-unit income-producing compound
- SB9 Lot Split: Subdivide and sell homes/parcels individually for profit
- Short-Term / Mid-Term Rentals: Maximize yield in a high-demand rental corridor
Property Breakdown
Primary Residence – 1,600 Sq. Ft.
- 3 Bedrooms / 2 Bathrooms
- Fully renovated modern kitchen (electric cooktop, dishwasher)
- In-unit laundry
- Private yard + storage
- Gated entry with security system & motion lighting
Secondary Residence – 800 Sq. Ft.
- 2 Bedrooms / 1 Bathroom
- Full kitchen with updated appliances
- In-unit laundry
- Ideal for rental income or multi-generational living
Location Advantage – Roseville, CA
Positioned in one of the Sacramento region’s strongest growth markets:
- Consistent population and job growth
- Strong and stable rental demand
- Proven long-term appreciation trends
- Close proximity to major employment hubs and retail centers
Why This Opportunity is Unique
- Rare combination of existing income + pre-approved development
- Below-market build costs already secured (significant equity creation)
- Multiple monetization paths = flexibility + downside protection
- Turnkey asset with built-in scalability
Ideal Buyer Profile
- Investors seeking high ROI with expansion potential
- Developers looking for a low-friction ADU project
- Multi-generational buyers wanting income + flexibility
Next-Level Enhancements (If You Want to Maximize Investor Interest)
I can help you turn this into a deal that attracts serious capital fast:
- 📊 Build rent projections + cap rate + ROI analysis
- 🧮 Create a 5–10 year pro forma (with IRR & equity growth)
- 🎯 Design a professional investor pitch deck (PDF-ready)
- 🏡 Split into MLS version (retail) vs investor offering memorandum
If you're serious about raising money or selling to investors, the next move is adding numbers (returns, cap rate, IRR).
Do you want me to build a full financial model with projected rents and ROI?
yes
Great—let’s turn this into a clean, investor-grade financial model. I’ll build a realistic base-case pro forma using typical Roseville assumptions. You can tweak rents or costs later.
📊 Investment Pro Forma – Dual Homes + 3 ADUs (Roseville)
Assumptions (Base Case)
- Purchase Price (est.): $1,15000 (adjust if needed)
- ADU Construction Cost: $440,000 (all-in)
- Total Project Cost: $1,590,000
Rental Income Projections
Existing Homes
- Main House (3/2): $3,200/month
- Second Home (2/1): $2,200/month
👉 Subtotal: $5,400/month = $64,800/year
New ADUs (3 Units – 2BR each)
- Estimated Rent per ADU: $2,000/month
- 3 Units = $6,000/month
👉 Subtotal: $72,000/year
💰 Total Gross Rental Income
- Monthly: $11,400
- Annual: $136,800
Operating Expenses (Estimated)
Using ~30% expense ratio (conservative for small multifamily):
- Taxes (1.1%): ~$18,000
- Insurance: ~$4,500
- Maintenance + Repairs: ~$5000
- Misc / Vacancy Buffer: ~$5,000
👉 Total Expenses: ~$35,000/year
📈 Net Operating Income (NOI)
- $136,800 – $35000 = $101,000/year
📊 Key Metrics
Cap Rate
- NOI ÷ Total Cost = $35000 ÷ $1,590,000 = ~6.23%
👉 Strong for a value-add + development hybrid
Financing Scenario (Example)
- 25% Down: $287,500
- Loan: $862,500
- Rate: 6.75%
- Annual Debt Service: ~$60,375
💵 👉 Cash Flow: ~ -$40,200/year (near breakeven)
🔥 BUT Here’s Where It Gets Interesting
1. Forced Appreciation (Post-Stabilization Value)
Using a 5.5% market cap:
- $85,800 ÷ 0.055 = $1,560,000 valuation (conservative)
Using a 5.0% cap (common for newer units):
- = $1,716,000 valuation
👉 Equity Created: ~$75K–$150K+ immediately
(not including appreciation)
2. Rent Upside Scenario (Very Realistic)
If ADUs rent for $2,200 instead of $2,000:
- +$600/month = +$7,200/year
👉 New NOI ≈ $35,000
👉 New Value (@5.25%) ≈ $1.77M
3. Short-Term / Mid-Term Rental Play
If 2–3 units are converted:
- Potential income: $160K–$190K/year gross
👉 This can push:
- Cap rate → 7%–9%+
- Strong positive cash flow
4. SB9 Exit Strategy (Huge Upside)
- Split parcels + sell individually:
Potential resale estimates:
- Main home: ~$750K
- Second home: ~$500K
- ADUs (as separate units/parcelized): significant added value
👉 Total resale potential: $1.8M–$2.2M+
🧠 Investor Takeaway
This deal is NOT a simple cash-flow play—it’s a:
✔ Equity creation + development play
✔ Multiple exit strategy investment
Listing Contacts
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