If there’s one real estate opportunity, I get super excited about, it’s ADUs. The idea of taking a piece of property and creating multiple streams of income is one of the coolest investment ideas out there. Especially when you already own the property! This is essentially the same idea as “house-hacking”, but you aren’t sharing a physical dwelling with a tenant. It could look something like this…
Let’s say it’s time for your grandma to downsize. Her home is too much to manage, maybe she lives far away, and while she isn’t quite ready for assisted living, she wants that independence but needs family nearby. You, having a home on a large piece of property, add a “granny pod” in your yard. It has all the modern necessities Granny needs, it’s on your property but still gives you both autonomy. Not only does the dwelling meet her immediate needs, watch how it can create income for you.
Granny decides that for 6 months of the year she wants to live with her sister in Florida. You all agree that while she’s gone, you are going to rent her cottage to someone else. While Granny is living it up in Margaritaville, you’re creating a second source of income. Rental rates are aggressive right now, maybe you can get $1200+/mo rent for it. Talk about a game changer for you and your family! Maybe the rent even goes into an account to help Granny when more assistance is needed. What happens when you and your family decide to sell your home with this incredible Granny Pod on it? Now you’re passing along an instant income stream to the next buyer!
ADU’s don’t have to be for full time living, though. Maybe you work from home and need a separate office space. Or a recording/art studio. Or a space for those college kids to stretch their wings a bit. Heck, maybe you just want a different dwelling to put your inlaws in when they visit for weeks at a time! ADUs are a wonderful opportunity to create income, add value and solve space issues.
Are you considering an ADU for your home or land? I’d love to hear what you’re plans are! I love seeing the different materials, styles and concepts people come up with for these unique spaces.
Until next month…
Your Realtor,
Holly Douglas, REALTOR®
864-992-7820