The Beginner's Guide to ADU Investing (Accessory Dwelling Units)

[@davinitall]

Biggest tip I can give is check your contractor’s credentials and be active in the development. I’ve seen it too many times; simply walk in to the office and ask questions about ADUs, the permitting process, and code. Then hire a licensed, bonded contractor capable of handling the permitting process. Then ask for an update once to the local building department. Trust but verify. Seen too many people get taken for a drive with little recourse. People promised permits and stopped construction after the local city told them they didn’t have a permit, fake permits (even convincing ones), straight fly-by-night contractors whose voicemails are constantly full as soon as an issue comes up, to combinations of all of them. Be selective and if it just doesn’t sound right, bail. Your ADU (or construction of any type) was not approved in two hours. Your permit shouldn’t be from a larger city 45 minutes away, the mayor (probably) didn’t personally assign you a permit. I’ve heard a lot of stories about disasters. Everything from fake permit scams (which can be surprisingly elaborate) to massive court battles over pretty blatant misrepresentation of qualifications. This is especially true in smaller municipalities where there is a breed of contractor/builder that prays on people’s ignorance. In the best of times, it is simply their own ignorance. And that is the beginning.

[@tracylieu3211]

I converted detach adu 400sf full kitchen, tile bathroom, separate electric meter and gas meter, upgraded new panel to 200amp with electrical car charger included vanity, quartz counter top, mini split and tankless water heater for $160/sf

[@ss31dallas]

Thanks for sharing! What area and did you guys do the work yourselves or hire out?

[@tracylieu3211]

@@ss31dallas I hired general contractor without license to take care whole things but he has license and specialty for electrical, insulation, level raising floor, Mini split, stucco and take care with city inspector, I only did schedule for him, he completed within 2months everything

[@ss31dallas]

@@tracylieu3211 what city/state?

[@blackdiamondsales10x]

Amazing price and it sounds great

[@DB-cx6cb]

@@tracylieu3211 unlicensed? So glad it worked out for you. Unfortunately many get burned. Retired Building Plans Examiner and over 30 year’s experience I can’t tell you the number of heartbreaking stories of honest hardworking working people paying out to unlicensed workers running off projects and work never finished. Legally the Municipal Judge in my County ruled the homeowners were negligent since by law they avoided using licensed contractors. Anyone reading this just as they say………be vigilant with your money.

[@jacobgarcia7217]

My partner and I built a fully permitted attached garage conversion in San Pablo, CA. 450 sqft. For about $95 a sqft. 75% of the work was self performed. Super excited to start the next one….. first I have to find money to buy another property and fund our deal 😅😂. Initial Purchase Price: $560,000 All In: $70,000 (Main home remodeled as well) ARV with ADU: $795,000 - $810,000

[@talus007]

Did you rough into your concrete or use a up flush toilet system?

[@carrieveatch8839]

Thank you!! Excited to hear you speak at the Rocky Mountain Women Invest event next week. My neighborhood is in the works to get re-zoned for ADU’s so this is very exciting!

[@hardknocklifeentertainment1059]

This is FANTASTIC information!!! Thank you so much ☀️

[@suiteadditions]

Great Video! ADUs are the way of the future!

[@ThatADUGuy]

Thank you BP viewers for such detailed and insightful questions and comments! I love to see the ADU wheels turning!

[@motley06]

So much good information here! Thanks Derek!

[@gabisrael6829]

Here in Florida looking to buy a some land to put an ADU on it. This video was very helpful with the steps I need to take. Thanks

[@ThatADUGuy]

Awesome!

[@Khanh.Nguyen369]

Love this. Please more ADU videos.

[@RobertNavarro-q1w]

First of thank you ; I would like to build an Adu on my property. I have an attached 2 car garage i want to convert although after listening to your suggestions of the master bedroom conversion seems less expensive and more convenient

[@jodykurt9935]

Cheapest path in unincorporated san diego County is adu detached manufactured home. Working on this right now with 3 bed/ 2 bath adu, home cost 99K. Bur we have a lot of space, half an acre. Renting for 3500 per month when completed, loan payment is 1700 per month

[@GTContent]

Are you doing the work or a contractor?

[@Cam876baby]

Hi @Jodykurt9935, would love to get more info about which company you went with. I'm in Riverside County and looking for reputable GC. Thank you :)

[@christians.711]

What loan program? In sd also

[@raineyjayy]

Honestly if you are homeowner it's awesome for equity

[@noellepore1520]

I've been waiting for this! Genius!!

[@HomeServicesReviews]

Very valuable information and tips!

[@sethsamson666]

Good tips as always from BP. To the question asked in the video: $150/ Sq foot of 1200 Sq ft detached ADU in San Diego CA. Includes materials and labor paid progressively. Excludes permits. Factor another 20k for permits. Contract signed September 2021. Expected to complete in September 2022. Best of luck to everyone in the same journey. Also, see u all at BP CON 2022 in San Diego!

[@ThatADUGuy]

Congrats Seth! That is a great deal, I look forward to hearing all about the build at BP Con, if not before.

[@jessicadubiel1823]

Hi Seth! Fellow San Diegan here! Finishing up the permit process for a 1,200 sq ft detached ADU and wanted to start looking for contractors. Do you have any contacts? Thank you!

[@Lynaka1]

Yes, please share your contacts.

[@kenny5132k]

What's your company in san diego

[@JCC56]

Attached adu sounds great for my situation converting my master bedroom.

[@spsv_25]

Thank you for the content. Can you please explain WHY you would advise against adding an ADU to a lot in a multi-family zone which would allow an additional detached structure on the same lot? Thanks

[@ThatADUGuy]

Adding more units are great! In most cases, if in a multi fam zone, ADU code will not apply. Check with your local planning and zoning office.

[@edwinsontay8458]

This what I did when I bought my house back on September 2021, regular lender could not loan me for the house because it had an existing detached ADU, went into the country and since it was existing was allowed to be there, I love Biggerpockets

[@ThatADUGuy]

Awesome share, always go in and talk to a person if you can. Love it!

[@laurasamaniego5937]

WOW! @ Edwin, Great information. Thanks so much for sharing.

[@etmchrome]

Great video and thanks -- you can build ADU's on multi-family Zoned lots. Actually it's rather common and a great strategy. In some areas of LA County, you can even build more ADU's in addition to your by-right ones, depending upon how many existing units you already have. :)

[@Alan-bj9nb]

How does converting a master bedroom to an ADU affect the rental income of renting the remainder of the house out? It seems to me that most people renting a house are expecting a master bedroom to be included in the floor plan.

[@Mypromisethetruth]

What’s the difference in building an ADU in a multi family zone vs a residential?

[@munnerator]

I think Boxabl is the first company making a manufactured 600 Sq Ft home, which can be utilized as an ADU, starting at $50,000. Which translates to approximately $84 per Sq Ft.

[@tracylieu3211]

Boxabl does a prefab 360sf not 600sf for price $50000 but you have to pull permit and do plumbing for sewer water line

[@ManyaP64]

Has anyone actually received their Boxabl? They don’t even list their prices online anymore.

[@munnerator]

@@tracylieu3211 Yeah, it's 375 sq ft, I was mistaken. Prepping the land and paying for connections is also a factor.

[@munnerator]

@@ManyaP64 I believe they have shipped to some test sights and customers, but they have not started regularly filling orders to the best of my knowledge. I hope they start soon!

[@goldensmile2005]

You probably need extra $30k to set it up

[@talus007]

The local zoning authority can also tell you the max number of non related roomies for a rent-by-the-room property

[@carlosvillalta9974]

Is building an ADU better then buying another home as a rental?

[@mattcampbell755]

Watched your previous BP video and enjoyed it, thanks. Nice to see more info spreading on ADUs, and especially the zoning/permitting issues associated with them. I wanted to make two comments, one on legality and one on buildout. Living in the Bay Area for five years, ADUs were everywhere - and almost none of them are legal. I had several friends who were very excited to create an ADU on their properties. Even in the areas where it was allowed, the amount of paperwork, permitting and costs were so prohibitive they all, without exception, gave up the legal path and just did illegal conversions. If towns really value increased affordable housing like they say they do, they need to put their money where their mouth is and streamline all the ADU processes and costs, or they’ll just continue to get zero for their SDCs. For controlling buildout costs, I love your master suite concept, but I have to imagine many prefer a garage conversion for the increased separation and privacy. We finished a 400 square foot space over my parents’ garage in NY as a bedroom back in the 80s, then later added a full bath. Costs were kept low: utilities weren’t separated, finishes are pretty basic, and there’s no kitchenette (though adding one would be trivial). I will say electric baseboard heaters are very cheap vs. a mini split, particularly lifetime costs since they are almost maintenance free forever, ours are over 30 years old.

[@ThatADUGuy]

All great stuff Matt, thank you for your detailed comment. I respect the time you took to write it. Yes, there are many legacy ADUs in service and AHJs have made it hard over the years to do it right. In the last 1-3 years, planning and zoning laws have started to drastically change for the better in this case. Now, many AHJs only require a type 1 (over the counter review) and a simple building permit for an ADU. Fees associated with the process are high when not waived, you are right. As for costs, we control them with a simple design and less square footage (when possible). Garage conversions can make a great option in some cases. The problem most people run into when doing a legal garage to ADU conversion is they can no longer meet the parking standard once the parking in said garage is no longer available.

[@mattcampbell755]

@@ThatADUGuy Makes sense on the parking restrictions. Our finished room was over the garage on a second story, so no lost parking. Head height is an issue, if we did it again I’d put in a gambrel roof to get 8’ ceilings.

[@ThatADUGuy]

@@mattcampbell755 great tips! Yes, ADU over garage is my personal favorite! Stay tuned for another ADU show (next week) . It may have a couple ADU over garage shots ;)

[@rayjou742]

@@ThatADUGuy I went to an Adu seminar in the past that said ADUs over garage were the worst option out of all of them due to the biggest issue being that the garage was not originally built to support all the weight above. What is your experience with this?

[@ThatADUGuy]

@@rayjou742 true based on older built homes. Many times you may have to beef up the footings. For new construction, they are my favorite type.

[@jaket8947]

Derek, besides local folks for cabinets and things for ADUs, is there a good way to source appliances, flooring, etc for a better price than regular retail?

[@JCC56]

I sure would like to build an adu in my backyard, I know it would be really expensive right now. Trying to figure how to finance or heloc with my current home equity ?

[@deontael1389]

can this be completed on a home zoned asa duplex?

[@SteveSabbai]

Homeowner: "ADU." HOA: "Nope!"

[@martidowdy2419]

Very informative! Thank you

[@screammachineman]

Pricing: We are building a 1,000 sf detached ADU on flat land in Brea CA (Orange County). It'll be almost 400k in construction costs.

[@ThatADUGuy]

Thank you for sharing! I assume it is in a really nice area with very high values? Maybe on a slight slope? Maybe two stories or over 10' tall? I have noticed building is S CA drives up costs due to soloar and earthquake standards? At any rate, I hope it turns out great! Send me a picture when it is done if you would like!

[@screammachineman]

@@ThatADUGuy It's not for rental, so it'll be nicer than builder grade. It's ADA compliant, 1 story, a 2br/2ba. yes, the area is nice, I mean most homes are now in the 1.1 to 1.4m range, and mine is on a large 20k+ sf lot. We will have a longer than normal trenching run for water and sewage and have to go through concrete. 6-8months estimated build time.

[@ThatADUGuy]

@@screammachineman great info, thank you again for sharing! Sounds like a great investment in your market. ADA comp is great! More people need to consider AIP (age in place design).

[@paramtung8264]

That is a Beverly Hills price . May be it’s wrong time to built as lumber is so expensive right now . I built 475 square feet for $38,000 back in 2013 . In north Hollywood .

[@ThatADUGuy]

@@paramtung8264Thanks! Seems times are changing for sure! Takes longer and costs more these days.

[@mh4realestate563]

Hello, great video, im trying to decide between househacking a duplex or adu, i know they're are considerable tax advabtages to having a legal duplex, do ADU's mirror the tax advabtages of a multofamily property ?

[@ThatADUGuy]

Yes, in my case but check with your CPA. A duplex is great, it just costs more for a similar asset most of the time. Also, house with ADU with be easier to buy or sell because you can get a non fha QM loan for 5% as a primary. Outside of a an FHA you will need more down to buy a duplex (15-20% in most cases), so will buyers if/when you sell.

[@chrissantana55]

How we do check if our zone area accepts the construction of a ADU? I live in queens, New York City

[@StephStoltenberg]

In Fresno, CA tiny houses on wheels have been approved as ADU's . We are known as the first in the nation to do so - any thoughts on this as a strategy?

[@ThatADUGuy]

It is another option for sure. Tiny houses are grest but may be harder to fund, insure and re capture value. One pro is that they are movable! More options are good options though, good on Fresno!

[@GO_Agave]

They are illegal in Tulare County.

[@fayekingslee1367]

Can you share what are the tax benefits in building an ADU?

[@mariabernal1170]

Can I rent out my main home if I have an adu on the property?

[@bbqworld2103]

Good info thanks

[@Lee_NE_87]

So, where I am at construction costs are high but no where near what you describe them as. I’m in the plains states and supplies are hard to come by but construction can still be done between 115-150 a sq. Ft on new build ADU. Then if I look at it and work stuff I can drop them from there. Saying that rents are not as high as I am sure they are in the Pacific Northwest or California. As far as zoning most places seem to be open to them in some form out here but they haven’t taken off as a force yet. I’m not sure exactly why that is when there’s arguably less available quality housing. I view them in two veins. 1st is workforce housing options. Traveling healthcare workers are a great resource as can be other early professionals like teachers who want good but cheap as they establish but might not set down long term roots. The other is in college towns you could likely charge a higher rate, with more risk, and cash flow really really well while keeping an eye on the tenant if you’re living in the main.

[@ThatADUGuy]

All great points, thanks for sharing!

[@Ceci-Pina]

Is anyone here in CT? I just spoke to someone in zoning in my town and basically said they are not to be rented, only meant to be like an in-law suite so only family members or there’s gotta be some relationship. Bristol, CT. I know CT makes it sound like you can do them of course depending on the city you’re in and I think there were some changes where I am where now is a zoning permit and not a special permit and a change to the sq. footage, but other than that it wouldn’t work for us to do it if we cannot rent and have a return. 😢 is this because it’s so new still here? Are there other towns in CT where you can rent ADUs that we may look into?

[@emanuelguzman6028]

My area allows for an ADU to be built however I am unsure if I should just do it illegally with no permits or hire an architect. Didn't realize how expensive they can be. What are you thoughts?

[@ThatADUGuy]

Always follow the rules and pull permits. It will be worth it in the end.

[@odomn]

cheaper for sure. by a lot. but then you have to worry that a disgruntled tenant reports you to code inspectors, you're essentially giving away your power as a landlord. Also, when you sell, which you want to do eventually, permitted ADU increases property value, unpermitted does not.

[@swod1]

Hello KZbin! I bought a house last year I now learned had an unpermitted garage conversion in Tampa Bay region FL. Has anyone gone through the process of an 'As-is' / 'As-built' / 'After-the-fact' permit here/know any GCs that have successfully handled this type of issue?

[@betzandragarcia141]

I’m in the opposite side. Bought a house submitted permit approved by zoning and now I’m dealing with building department. Have you gone to the city to ask for process remediation?

[@swod1]

@@betzandragarcia141 - I was able to get it resolved. Needed an engineer and GC to process everything

[@betzandragarcia141]

@@swod1do you recommend the GC I’m currently bidding my project so far got one quote but the guy went from 35k- to 75K to convert the garage increasing 300 sft

[@swod1]

@@betzandragarcia141 is that for all the work or just permits. Depending on the area the low range doesn’t sound too bad if all in. I found someone who had 5* reviews on Google maps in the area and would do it hourly then came in very reasonable I talked to probably 15 people before I picked the GC I went with

[@betzandragarcia141]

@@swod1 75kc is to build the ADU he wanted to charge me 10k for permits but I’m doing the permits by my self I work in an architectural firm so I got my own architect and I’m dealing with the city by myself

[@conormcfarland1502]

is your lav mic working?

[@tracylieu3211]

I just completed final approval with certificate of occupancy for my detach ADU. I need your help to find out how to build sb9 bigger single family house in my ground up yard in Los Angeles

[@RobertNavarro-q1w]

I would like your suggestion

[@alzuni347]

I'm about to finish a detached adu in ca,it's a 1200 sf house with separate gas and electric, going to end up costing me about 215 k, so about 180$ per square foot

[@ThatADUGuy]

Awesome!!!!

[@ThatADUGuy]

That will provide a great ROI!

[@MrVnk811]

No way.... I got quoted for $350k-$400k. What part of California are you from?

[@alzuni347]

I'm in san bernardino county

[@alzuni347]

Thats also including city fees and school tax fees

[@siobhancyd9536]

Hey Derek just caught your BP episode #581 and looking for your insight. Closing on a property in Drexel Hill, PA that meets all your crystal clear criteria for a detached ADU: R 10 zoned double lot with flat street to street access, plenty of room to meet the side yard and rear setbacks, plenty of room to add 3 car off street parking, permitted to allow 1 800 sf ADU, existing 1035 sf single family unit with finished basement and 800 sf attic space. Near a university and a 15 min walk to public transportation (SEPTA). I'm therefore thinking of a 2 bed 1.5 ADU, to rent at $2250. Question for you - what is best use of the plot, should I: 1. do prefab pre-approved model and touch up interior here/there with upgrades (deck and courtyard in between, etc.) 2. bite the bullet with the longer term strategy and build ground up or, 3. Build a corridor/hallway to connect the 2 structures? I'll email the address. I already have a few properties but an an ADU newbie.. Thank you in advance for your thoughts!

[@ThatADUGuy]

Awesome detail, thank you! Sounds like the prefect ADU property! If you are long on the property and the area, I would go for otion 2. The only reason to go with option 3 is if you could still build a detached ADU in the future. If you are interested in the attached ADU check out the last BP ADU clip on that topic. Sounds like you have great options to meet the 10% rule with rents that high. Think long term!!!

[@siobhancyd9536]

@@ThatADUGuy I have booked a Consulting session with you for this Sunday morning. If I can get your email then I will reply with the address so you can see what I'm talking about. I'm also looking to maximize our time together so I'm doing ALL my homework this week!

[@ThatADUGuy]

@@siobhancyd9536Cool! I can always be reached at @thatADUguy on IG or [e-mail], both in the show notes I believe.

[@FlyMrC12]

If you’re purchasing a single family home and converting that into a multi-family, won’t that “misalign” with the way the neighborhood you’re buying in occupy their homes? Are you supposed to target certain neighborhoods to buy a home to add an ADU to? For instance you wouldn’t do something like this in a suburban neighborhood with no other multi-family households, right?

[@ThatADUGuy]

You can use this strategy in any area that allows ADUs. That means that the city/county officials have already taken comment, voted and passed zoning laws based on wants and needs of the people in that area. The whole point of the ADU movement is that they "blend" into areas that are made up of single family homes. For ex. many codes state that the door of the ADU can't be seen from the front of the house.

[@paramtung8264]

My lot is 75% R3 zoning and driveway side is R1 . City zoning department told me I can built up to 7 units and can go 45 feet in height . But according to my situation I am thinking to built 3 units above 4 car garage in the backyard . And leave the front house as it is ,as I live in it . Or do you think I should make senior and junior ADU ? As it might be less expensive to built

[@ThatADUGuy]

The ADU/JADU standards are way less restrictive than multi family building rules most of the time.

[@Ducky-c3u]

Where are you located? Nice

[@makidominguez5856]

I am building stand alone ADU's in North Dakota for less than $100 per Sq. Ft. I very much would like to show you how.

[@vickynoname9860]

Please tell me. Trying to build one in Tampa, FL

[@djsunshine1]

I am a Realtor-Investor in MA. Anywhere I can consult with someone in MA

[@ze_german2921]

O learned that every county has different criteria for zoning, always speak to someone in your planning office. Email takes to long.

[@Esther-ps3vx]

Thank you for the good information. I have an inground swimming pool which I will be getting rid of soon. I am thinking of getting a full removal and paying a lot of money so that I can put in an ADU sometime in the future. I am wondering if I am making a mistake by paying a lot of money to remove it fully or should I get it partially removed. As mentioned in this video a detached ADU will cost me more than an attached one. My aim is to rent the ADU so please can you tell me if an attached ADU is better or a detached one for Airbnb.

[@ThatADUGuy]

If you have the funds, a detached ADU will bring 30-50% more rent. Also, more privacy for the primary house.

[@Esther-ps3vx]

@@ThatADUGuy Thank you so much!

[@KindsleyKreations-yp6uo]

Y’all prices per sqft is crazy ridiculous .. take your time and manage your project and build guys and gals

[@chhoeuth1]

After years of dreaming of a man cave for my 500 sq. room (attached but accessed by garage and backyard), I'm now committed to doing an ADU to rent to students. Would a bathroom and small electrical stove fit? I live in Fresno, what is the expected cost to add a bath and shower? Thanks

[@ThatADUGuy]

Yes and yes. 5-20k.

[@Lynaka1]

Can a HELOC or home equity loan be used to fund an ADU?

[@ThatADUGuy]

That is an option, just fully understand the adjustable rate and have a plan.

[@moaijeff1230]

A heloc can be used to fund a cheeseburger

[@Lee_NE_87]

Yes, just make sure it cash flows with a good reserve policy especially if on an ARM.

[@simonalobl2428]

What about prefab units like Boxabl? Your thoughts on this?

[@ThatADUGuy]

The idea/concept is great. The issue I find is that they have a hard time meeting building code standards in most AHJs. Also, you need all the same plan review, site work, ex: concrete foundation, underground water, sewer, power etc. In time, they will gain traction.

[@ThatADUGuy]

Great question, thank you!

[@GriswoldFamily]

@@ThatADUGuy My understanding is that, in most regions, the Boxabl will also need an added roof.

[@RajSingh-vt5qe]

Cant get a Boxabl. Waiting list is long. Been waiting for 2 years now.

[@larrychong]

Is it realistic to be allowed a separate, individual mailing address and mailbox for an ADU?

[@sethsamson666]

Hi Larry! For my detached ADU in San Diego, a new and separate address was a requirement before the City would release the permit. It was a $250 fee in 2021. So not only was it realistic, it was a requirement.

[@ThatADUGuy]

Yes, and as important as mail is that the attached or detached ADU has its own address that is clearly displayed for responding emergency services.

[@sethsamson666]

@@ThatADUGuy Derek, we are so lucky that you are as thorough as you are knowledgeable. Thank you.

[@ThatADUGuy]

@@sethsamson666 Thanks, just time in the seat and lots of mistakes to learn from.

[@arnaldosifre2706]

My mother did this year's ago and her house is almost paid off due to invest in a ADU.

[@arnaldosifre2706]

Thanks for sharing, I really love the ADU if permits allow it, almost done with my first rental. Thank God.

[@carlosvillalta9974]

​@@arnaldosifre2706I would think rentals would give out more passive income

[@MindFord11]

Z so😊😊😊😊

[@hux0rz]

if converting a detached 2 car garage (concrete floors, wood frame) - what's usually some of the most expensive parts of making the conversion? this will help me look for some homes with that have cheaper detached conversion potential. thanks!

[@ThatADUGuy]

Meeting insulation standards, moving water heater and or w/d if they serve the primary and meeting the parking standard outside the garage.

[@THEGAMINGHELP101]

@@ThatADUGuy A few other things to know about. Depending on the age the concrete footing might not be strong enough, if not then it will cost to dig around and increase the footing. Sewer is another important thing, you might need a grinder pump to meet sewer pipe slope code. Then another expense is meeting wind loads which requires sheathing the inside of the walls.

[@ThatADUGuy]

@@THEGAMINGHELP101 great stuff!

[@homesinsiennacom]

that watch though,

[@ryanfrizzell736]

Make sure you obtain proper permitting for constructing your ADU. We don’t want illegally constructed ADUs now do we!

[@morrisassociatesllc]

Would someone explain the advantage of building a detached ADU over building an infill home? Other than a size restriction on an ADU, in my city, the permitting and code requirements seem to be the same. Thanks

[@ThatADUGuy]

Great question! In most cases you can only build one house per lot (single family zone). But each house/lot can have one or two ADUs. Also, many times it is very hard to meet the site standards and parking for a second full sized house, even if code did allow it. If your lot is in a multi family zone and you have a large lot with plenty of room, consider a second house. This does add considerable costs of all new infostructure (water, sewer, power) that have to be connected to the mains, as to just piggy backed off the house. Still a good option in some cases though.

[@morrisassociatesllc]

@@ThatADUGuy thanks for your insights. The property is one acre with a small 1200 sq ft home on the front. Plenty of room for a nice size home on the back of the property with ample parking. The property is zoned to where I could build a 3 story mixed use building on it, but won’t because we want to preserve the look and feel of the old neighbourhood. The city would require us to put in new infrastructure whether it was a ADU or a 3 story building. Another plus to this property is that it’s in an Opportunity Zone.

[@ThatADUGuy]

@@morrisassociatesllc Awesome! Sounds like a great investment with good development potential!

[@arthercasillas2755]

My city planning charges $500 to tell me if I can build an ADU.

[@fluffie6568]

Hi, when you install an ADU, how do we set up a mailbox for the ADU? Do we need to ask the post office for this? Thanks

[@ThatADUGuy]

Call your city for address request form and then give notice your local postmaster and EMS/911 center.

[@betterhomesnc2437]

Thank you, great information

[@kmilesSC]

Not just zoning. Most HOA boards covenants prohibit them as well,

[@ThatADUGuy]

Great call. Also check with your state. Legislation may keep HOAs from imposing rules.

[@homesinsiennacom]

master bedroom conversion defeats the entire purpose, privacy.

[@ThatADUGuy]

It can depending on the layout. Look for a split level or master on seperate side of the house. This with good sound proofing and wall design can work well and is by far the lowest cost option. But at the end of the day, you still have a shared wall dwelling like a side hy side duplex.

[@GenXSterling]

You have failed sir. I have no idea what an ADU is. I stopped the video after listening to you three times get to “now you know what an ADU is”.

[@Lee_NE_87]

You’re so angry in your post. And ADU is as he said an auxiliary dwelling unit. He said it many times. He even broke down the difference in attached and detached. The idea is to take a lot allowing for a single home and create cash flow on it legally by adding another housing unit where one normally couldn’t be had. Either by partitioning a house of form the inside or by adding an exterior unit like a large shed or an apartment/garage combo.

[@GenXSterling]

Anger implies an emotion was expressed. Pointing out one’s failure is not an emotion. I understand what the acronym stands for. You, like he, have failed to explain to how an adu is value add. What goes in the adu? Another family?

[@Lee_NE_87]

@@GenXSterling except he did cover that. The addition can be used as a value added piece from appraisal and occupancy of the overall home value and cash flow device. What is there is less an issue than what it creates which is opportunity.

[@yoshisaidit7250]

@@GenXSterling "What goes in the adu? Another family?" Yes ADU is the same as a MIL (Mother in-law) house, or a Ranch-hand house. It can be built on a property zoned as single family (R1). it's is another stream of income to rent it out. Meet Kevin does this a lot with his rental properties in Cali. He will mostly take a detached garage, and convert it into a rentable unit.