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Adding an ADU

Loan Process

Benefits Of Adding an ADU

1. Rental Unit to Earn Passive Income

Is an ADU a good investment? The answer is unequivocally, yes! In fact, the #1 reason homeowners decide to invest in an ADU is that accessory dwelling units bring in a considerable amount of income. Finding new and creative ways to earn passive income is the name of the game in 2022. The addition of a second unit to your property can be an opportunity to start earning some passive income. 

ADUs typically have their own entrance, kitchen, bathroom, and bedroom so you can rent them as separate living spaces for tenants and earn extra cash from the time they spend in it with you. This is perfect if either monthly or short-term rental payments are more convenient for both parties involved and give renters a place that feels like home without having to commit to a long-term lease agreement. Creating additional revenue streams outside of what’s currently provided by a traditional rental.

2. Increased Property Value

Second to passive income, another popular reason for building an accessory dwelling unit is that it will increase the value of your property. You don’t need to break the bank in order to increase your property’s resale value. Building an accessory dwelling unit (ADU) or converting your garage, will do just that according to sources like The Nest and the National Association of Realtors report. A majority of potential homeowners are willing to pay more for properties with ADUs attached as they offer increased flexibility, privacy, and lower monthly living expenses.

3. Family & Guests Visiting From Out of Town

If you love hosting friends and family, but your home can’t accommodate them, an ADU is a perfect solution. You will have privacy while they stay with a comfortable bed to sleep on, as well as their own space if desired for some alone time during their visit.

4. Low-Cost Housing for Senior Family Members & Caretakers

ADUs, or mother-in-law suites as they are sometimes called in the US, can be a great way to give parents and grandparents extra space while still staying close by. Building an ADU for aging parents can help keep your loved ones closer to home and allow you to be involved in their daily life. This will save money over the long run, as assisted living costs can swell upwards of $7000 a month while building an ADU typically ranges between just 10-20% of that cost. This is a great option to give senior family members the opportunity to still live independently while also being able to keep an eye on them should they need any assistance.

5. Adult Children & College Graduates

New research suggests that many “young Millennials” will be living with their parents after college. The study, carried out by TD Ameritrade and dubbed the “Boomerang Generation”, shows 50% of people under 30 plan to move back in with mom and dad once they graduate from college.

With the average student graduating with $37,172 in debt and housing prices skyrocketing, it’s not easy for adult children to find a place they can afford. An ADU is an affordable way to help your kids get their feet on the ground while living under one roof! The rent you charge them will be minimal, and fair, considering that they’re saving money by staying close by.

6. The Ultimate Home Office or Workout Space

If you live in an urban area and work from home, an ADU can be the perfect space for a home office. Whether it’s to meditate or teach yoga classes or accommodate clients as part of their therapy session, an ADU is an ideal solution! The privacy makes this place feel like a deserted island and creates an aura of peacefulness and tranquility. Construct an accessory dwelling unit on your property and leave the commute and noise of the city behind you.

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Shining Star Funding
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6101 Bollinger Canyon Rd, Suit 344
San Ramon, CA 94583
(925) 820-2981

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