Growing a portfolio is every investor’s strategy. Today, it’s imperative to get creative with portfolio additions. Perhaps adding an accessory dwelling unit to the single-family properties in your portfolio is the right move for you. 4 Reasons for Investors to Add an Accessory Dwelling Unit
WHAT IS AN ADU? An accessory dwelling unit, ADU for short, is a secondary dwelling unit with a kitchen, bathroom, sleeping area, and living space on the same tax lot as a primary residence. The ADU can be detached, above a garage, attached, or within the primary unit. Basement and garage conversions are great examples of bonus spaces that can be converted into income-generating ADUs.
Cities all over the country are experiencing a shortage of housing, driving up housing costs for both the rental and ownership markets. Cities rely on property owners and developers to develop the much-needed infill housing. Many cities, especially on the West Coast, are reducing barriers to develop ADUs, creating new opportunities for investors that own single-family homes and duplexes to build them. For investors who prefer the long game, ADUs have an excellent track record of providing reliable income and lifestyle flexibility. Here are four reasons why:
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