An accessory dwelling unit (ADU) is an independent residential housing unit, usually smaller than the main home, that is located on the same lot as a stand-alone single-family home. There are many different types of ADU’s from detached structures, attached external apartments, attached internal apartments, etc. We offer all different types of accessory dwelling units. There are several great uses for accessory dwelling units from housing tenants that pay you rent, to housing family members, multi generational living, short term rentals, Airbnb, creating a home or office studio, etc.
Accessory dwelling units (ADU), also known as granny flats, have become very popular because they are a great way of generating extra monthly passive income for a property owner that already has space in their front or backyard for an additional structure.
For example, most property owners living in densely populated metropolitan areas like Los Angeles, the San Francisco Bay area, San Diego, etc, build ADU’s and create ways to turn there ADU into a solid source of monthly revenue for their themselves and their families. By converting their garage or empty property space into a handsome ADU generating upwards of $1,500 extra income per month, from day one they are making a profit simply by making the best use of a resource they already have.
With our deluxe ADU’s, you can generate two additional streams of revenue each month. We offer 1,200 ft.² ADU’s and above which have two separate apartment units within them at 600 ft.² each. Each 600 ft.² apartment unit is very comfortable and stylish and will allow you to generate lucrative rental income for offering comfortable homes to your tenets.
Imagine you can have two tenants instead of one, paying you passive revenue streams each month. This will both pay for your construction costs or mortgage and allow you to net thousands of dollars per year in additional revenue for yourself and your family. In a large metropolitan area like Los Angeles, it is possible to generate $30,000-$40,000 per year or more after the mortgage or construction cost***
Accessory Dwelling Units (ADUs) have been known by many names: granny flats, in-law units, backyard cottages, secondary units and more. No matter what you call them, ADUs are an innovative, affordable, and effective option for adding much-needed housing in California. Accessory dwelling units are great for making extra money. It is a great affordable housing option for people looking to rent property. It will also increase your property value by having an additional unit on your property. An ADU is a great investment! Imagine how much money you can make each year by having an accessory dwelling unit that you can rent to people that are looking for affordable housing.
The starting cost to build a two-story ADU with 2 separate apartment units (total of 1,200 ft.²) is about $164,000 which equals $136 a square foot. Based on a 30 year fixed mortgage at 5%, the monthly mortgage for the ADU is about $880 per month. In a city like Los Angeles, each unit could be rented out around $1500 per month. In one year, the property owner can gross a minimum of $36,000 minus the annual mortgage cost of $11,400, leaving the property owner with a net profit of $25,440 annually.
That is a sweet passive income opportunity that can do wonders for your finances. In 10 years, you can gross over a quarter million dollars with no annual increase on your rent. Imagine generating $250,000 simply by renting out your property. In 20 years, that’s over a half a million dollars in passive income!
If you have a mortgage, by building an ADU, the money received from your tenants may greatly reduce or even eliminate your mortgage. By having an ADU, it can make you and your family lots of money. Your accessory dwelling unit will pay you back within the first five years. You will get a handsome return on your investment by year five. What are you waiting for? You’re sitting on a gold mine if you already own property! Let us build you an ADU to generate monthly passive income.
Large Families are building accessory dwelling units to reduce the cost of living for various family members. By consolidating living expenses, especially rent, families better utilize land by building additional housing for every member in their family. This is a great way to save money. This is known as multi-generational living. You can build an ADU through a garage conversion, add a brand new building on your property, create an additional space on your existing main home property, creating a basement apartment to your home, etc. Building ADUs on your property is a great way to keep your family together while allowing everyone to have their very own individual home.