ADUs are often considered a secure way to income generation. They are a safe long term investment. Depending on what the costs add up to during the construction process, the return on investment can go from high to amazing for Accessory Dwelling Units. They are also a growing tendency as to how to minimize or even eliminate housing costs, the largest monthly expense in the United States.
From home to retirement plan, ADUs are never regretted by homeowners who decide to build them as an investment.
How do they enlarge income?
For explaining purposes, we can say that ADUs work for homeowners the same way owning a duplex does. They fit into a form of housing similar to a single-family home but with internal multiple units.
While current zoning codes and ordinances limit where constructions such as duplexes and triplexes are allowed, ADUs are lately being allowed in an increasing number of cities, Los Angeles being the main one.
ADUs must be thought of as a long term investment, as they are not an effective way to turn a quick profit.
There is no standard method to predict ADUs financial viability, but you can think about it in terms of reduced mortgage payment, years to break even and return on investment.
Ways to enlarge income go from living in the ADU and renting out the primary residence, thinking of the addition as an investment in your future (according to experts you will most likely know the exact value an ADU added to your property the moment you sell it), a way to pay mortgage, among other things.
Even when fully taking into account operating expenses, ADUs do extremely well in comparison to other long term common investment opportunities.
So, what’s stopping you from investing in that gold mine you call a backyard? Get a free consultation to know if you are eligible for this cost-effective, lifestyle-changing, and forward-investment construction called ADUs.