Always looking to expand your real estate portfolio? Accessory dwelling units could be the answer to “what’s next?” Read on to learn how these small units can provide a big return.

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Table of Contents

Low Entry Cost

Add to Your Current Real Estate Investments

Unfilled Need for Housing

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Low Entry Cost

Whether you already own a property or are looking to cash in on your own backyard, ADUs are the way to go. Because they sit on land that you already own, the cost to build is low, coming in at less than $200,000 for a two bedroom unit that is ready to rent. This makes the entry cost much lower than purchasing a single-family home, which could set you back almost twice that amount and spring up surprise issues. Plus, have you checked out interest rates lately? Now is the time to build on what you already have.

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Cut down on the time and money you could be wasting on a new address. You can open the doors to an ADU in as soon as six months when you work with a builder that specializes in ADUs.

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Add to Your Current Real Estate Investments

Consider this: you own a multifamily lot that already hosts a four bedroom duplex. If you add a two-bedroom ADU in the back of the lot, you now have six bedrooms bringing in income. Don’t have an investment property already? Your huge backyard with more space than you know what to do with could add on a purposeful, functional unit that brings you passive income (and hopefully a great tenant).

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These options bring your properties, whether personal or business, a great long-term investment. Homes that have ADUs can boost property value by up to 35% according to a study by home services company Porch.com. Enlisting the help of an ADU pro can bring you a return sooner rather than later, and with a dedicated project manager, the lift is light.

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Unfilled Need for Housing

Accessory dwelling units fill the absence of affordable housing in single-family neighborhoods, making them desirable to tenants. Many of these neighborhoods have little to no rental properties, and the ones that do exist can charge upwards of $4,000 per month. Not exactly the easiest price point to find tenants for. Your return on investment can come quickly when you work with a full-service builder that includes thoughtful touches like quartz countertops and landscaping.

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Ready to learn how an ADU can bring your real estate portfolio to the next level? Contact us today for a free consultation and site visit.

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