Crash Course on ADU Rental Investing (Accessory Dwelling Unit)

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🎙️ Episode 341 - Did you know building Accessory Dwelling Units (ADUs) can solve housing shortages? It's a win-win solution for investors, providing affordable housing options while generating extra rental income. ADU expert, Derek Sherrell shows you how to leverage ADUs from zoning to good construction practices.
📄 Show Notes:
www.coachcarson.com/thataduguy/
▶️ Next Video: 7 Tips for Renting Out Your House (For Beginners or Experienced Landlords)
• 7 Tips for Renting Out...
🎬 Topics Covered:
00:00 - ADU Solves Housing Crisis
01:07 - Benefits of ADUs
03:00 - Breaking Down the Numbers
06:33 - Cost Saving Ways to Make ADUs
08:04 - Identifying Properties for ADUs
12:26 - Zoning Is Your Treasure Map
15:21 - Derek's Passion for ADUs
19:23 - Ideas/Templates for ADUs
27:43 - Getting the Money
34:10 - Where to Find Derek
35:14 - 7 Tips for Renting Out Your House
🔗 Connect with That ADU Guy:
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• Instagram: / thataduguy
• Facebook: / thataduguy
• Website: thataduguy.com
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[@brianweatherman9030]

I use the ADU strategy. I have 3 properties with ADU’s. All of mine already had existing structure. Great way to increase cash flow and ROI!! Great episode, Coach!

[@CoachChadCarson]

Thanks for sharing! Congrats!

[@virginiabrewster8444]

I love everything about this guest. Thanks so much!! We need more community minded real estate folks!

[@CoachChadCarson]

Agree! Derek is a role model

[@aleu320]

Love it so much Coach! Not just the strategy information which is great, but the message you always deliver - Do what matters - thank you

[@CoachChadCarson]

🙏 thank you for your kind comments

[@freedomworks3976]

Fantastic video ❤

[@MarketUAgency]

Awesome video!👏🏻👏🏻

[@DionTalkFinancialFreedom]

Love it.

[@CoachChadCarson]

Do you recognize the studio? :)

[@TropicTrdr]

Excellent video. My rentals appear to be in ADU friendly locales (California & Montana) and two of them already have seperate garages with alley access. Thanks for posting.

[@CoachChadCarson]

Bullseye! That's exciting. Keep me posted if you do something with those

[@priceandpride]

Love this option. Just don’t think it makes sense except very high cost of living areas since you can buy a house for as much as an ADU costs

[@cj2k867]

A couple of things to note. A detached ADU gains equity which u can leverage into the next property then subdivide the land and sell it as its own property.

[@CoachChadCarson]

It's a great option! The areas where ADUs are most viable are places where a majority of tenants in the main house won't mind - more dense, urban areas where rentals in good neighborhoods are in short supply. Not suburban neighborhoods where people have a big lot and want their privacy.

[@JevonMusicGroup]

Great info! I understand a detached garage with plumbing, but I'm struggling trying to picture a detached master bedroom... one that "doesn't share a wall with another living space," as he described. What would that look like?

[@CoachChadCarson]

thanks for watching. If I understand your question correctly, I think you are referring to the "attached" ADU Derek described. So, it's like a wing of a house and under the same roof. It would share one wall with the rest of the house, but if you're strategic about it, I think Derek said you can insulate/sound proof the wall very well. If possible, you can also situate it so the rooms on either side of the shared wall are living spaces where it won't be as big of an issue if there is a little sound. Does that make more sense? If not, we'll call in Derek:)

[@JevonMusicGroup]

@@CoachChadCarson Thanks so much! Yes, that does make sense. It's along the lines of what I've been planning on... considering the lack of duplexes and other small multifamily properties. I'll also follow the advice of studying the zoning map and regulations. That's a golden nugget for me, because I was set to do it the other way around... locate a deal, and THEN see if the zoning allows multifamily.

[@lusu6804]

Great video but that background noise is horrible

[@CoachChadCarson]

Recorded at a live event and not in a sound proof room. Sorry about that!

[@user-xw3jx1to3o]

Where can we get the show notes for this episode? I'm looking for the contact info for the lender he mentioned. Rentify? Rentafi???

[@CoachChadCarson]

Here it is: www.coachcarson.com/thataduguy You can also ping Derek on Instagram to get name of lender

[@appolo08]

Must the ADU have its own separate utility meters from the SFR in order to rent it out?

[@CoachChadCarson]

I don't think it would have to. You could include it in the rent. But as a landlord, I'd prefer the utilities to be separate if possible. If you pay water or power for someone, they have less incentive to be economical with them.

[@appolo08]

​@@CoachChadCarsonVery good alternative solution to having two separate utility meters.😅

[@chadlakin7517]

Hey coach. Any chance I can get a 1-1 message with you? Just starting my rental journey and have a few questions about what to do in the future.

[@noahbluesky1218]

I wish my rentals zoning allowed these. I can do adu, but only owner occupied and under same roof. No detached structures.

[@CoachChadCarson]

There's always grass roots advocacy! You never know! I like organizations like strongtowns.com that advocate for this kind of stuff. Catch the part of the video about Derek talking about work-arounds and loopholes as well :)

[@noahbluesky1218]

I sit on my city council so I get the opportunity to learn and provide input about all this. I also have a great pulse on the area. 😊

[@KidCity1985]

It's 7:30 am and now I want pie.

[@CoachChadCarson]

I always want pie! 😂

[@KidCity1985]

@@CoachChadCarson me too

[@virginiabrewster8444]

Makes a great breakfast! Think outside the box!

[@JRspeaking]

$1000k to build an ADU?! Geez, I really need to get out of California.