Add an ADU to Your Home to Increase the Value and Supplement Mortgage Payments
An ADU (Accessory Dwelling Unit) essentially turns a single family home into a duplex. You can rent out the unit, use it as a guesthouse, an office, a creative space, etc. Some empty nesters are even building an ADU to live in while they rent out their main house! Benefits include increased equity (as much as 35%), extra income to pay your mortgage, or just creating extra space for yourself and your family.
In Los Angeles, with home prices and rental prices soaring because of limited inventory, homeowners, sellers, investors, and first-time buyers are building ADUs or converting a garage into one. In recent years, LA County has made it much easier to get permitted to build an ADU, and recent California law SB9 makes its easier to add ADUs, split large lots, and create duplexes if you meet certain requirements.
How do you decide if adding an ADU is right for you? First and foremost, you need to have the space on your property. The most common and easiest way is to convert your garage into a studio apartment. If you have enough square footage in your backyard, you can also build one from scratch. If you have an extra room with a bathroom, you can close it off and build a private entrance. Keep in mind that it also needs a kitchen to be considered an ADU.
But what about the costs to build? If you have the cash, great! If you need financing, there are several loans designed to help you pay for home improvements and building ADUs. Speak to your loan advisor or contact me for a referral.
Contact me if you want to add an ADU before selling your home, find a house with an existing ADU, or need help renting out your ADU.