Throughout the country, low inventory in the housing market and high rent prices have many homeowners adding or considering adding ADUs (which stands for Accessory Dwelling Units).
ADUs often called granny flats, are guest houses or rooms added to garages to create rental income for homeowners. Homeowners typically add ADUs to increase cash flow, as well as look for their property value to appreciate.
Whether ADUs are right for you, depends on a number of factors. ADUs often cost at least $100,000 to build so being in a high-rent market helps to offset the initial investment. You’ll also need to make sure local ordinances allow them and what the regulations are. The old real estate adage about location stays true for ADUs as well. If you are in an area where rents are high or a popular vacation destination, then ADUs can make sense.
Again, you’ll need to check the local zoning and if you build one you will also need to have updated insurance to cover the ADU.
Check with us to learn more and to see what financing terms you qualify for.