1. Versatility
• Attracts tenants who prefer to live in residential areas • Works for tenants of different age demographics • You can live in the house and rent out the ADU • You can live in the ADU and rent out the house Unlike primary homes that are typically 3-4 bedrooms, ADUs are typically studio or 1-bedroom units. This is attractive to 1-2 person households who wish to live in residential neighborhoods rather than a commercial apartment complex. Multigenerational household living is on the rise in both the rental and ownership markets due to housing costs. The need for adaptable 1-story infill housing units that work for different age demographics has never been more evident. An ADU can provide for common household needs, such as guest quarters, home office, housing for in-laws or friends in transition, or possibly as a short term rental. Many small-scale investors start out by adding an ADU to their primary residence and renting it out. An even more financially savvy investor may move into the ADU and rent out the primary residence, potentially covering the full cost of the mortgage for the property. This particular “house hack” is a life-changing financial move for many young property owners, setting them on the course of financial freedom and the wealth production that can come with property ownership.
MANY SMALL-SCALE INVESTORS START OUT BY ADDING AN ADU TO THEIR PRIMARY RESIDENCE AND RENTING IT OUT.
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