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Why ADUs Make Financial Sense

An infographic depicting the cost to build three different sizes and styles of accessory dwelling units (ADUs), along with the estimated loan payments for financing that cost, and the possible rent that can be received from a tenant.

 


Accessory dwelling units make sense for a variety of reasons, so the realquestion isn't "why?", it's "how?". New legislation hasmade it possible for most properties in California to build ADUs. Regardless oflot size, current density, or zoning, you are likely allowed to build some formof ADU on your lot.

 

So, how do you pay for it?

 

With interest rates at all time lows, going through arefinancing, taking out a Home equity line of credit or constructionloan allow you to build your ADU, while cash flowing your new rental.

 

Not a rental?

 

Compare these monthlies to what you would spend on officespace, or an apartment for a family member or friend. We have built ADUs forparents, young adult children, grandparents, rentals and just for more living space.

 

Your ADU may start as a rental and wind up being a retirement property. Adding a unit not only increases your property value, but it will set you up for options now, as well as in the future. ADUs add flexibility.

 

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