House hacking property with ADU

11 Replies

My fiancée has no interest in house hacking because of the obvious fact of living near your tenants. I think I might be able to convince her if our first property has an ADU, so it's like we're neighbors and not sharing walls.

Any tips on finding properties with ADUs?

I've seen some houses come up on Realtor and Zillow that have an ADU in them, that seems like the easiest place to start. The ADU laws in New Hampshire are different in every town however, and in the town I live in, you must reside in the property to have an ADU, so check the laws in the town you live in if your plan is to move out and rent both units. Good luck!

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I just add "ADU" into the keywords search on zillow. Building one is possible too with enough space but obviously more difficult. Have you considered just buying a 2-4 unit? You won't have to live near your tenants in that situation. Or is sharing walls too much? Mother in law unit is an option too but usually you have to share a floor/ceiling

@Bradley Dosch

Thanks for your reply Bradley!

The primary issue she has with house hacking is being near the tenants. She would prefer to have our own home and invest in separate properties. Which that situation will probably be what happens because I don’t want to make her uncomfortable.

My purpose for this post was to help find an example property and make the proposition to her. I will try using the ADU keywords, thanks for that tip!

How about looking for a property with two homes?  Maybe a SFH with an ADU above a detached garage?  Would her comfort level be different if the ADU had an entrance of it's own that did not share the same yard or driveway?  With the right property, some ADU's are more private than some neighbor's homes.  Maybe chat with an agent about what you're looking for, as it couldn't hurt to have a set of eyes and ears looking out for you and sending you what comes available.  Check with local planning dept. and/or contractor about building a tiny-home ADU or 2nd story above a garage.

Do proper tenant screening, don’t rent to friends or family. Make adjustments on any lease you find so it suits your situation. You’re going to live with your tenant and things can get awkward when they say “I don’t have money for rent right now” and you see them having new toys and beer all the time. I think the most important thing to renting a space to anyone is to have leverage against them. That could be that they have a great credit score or a hefty security deposit. It sounds evil but it discourages your tenant from doing you wrong.

I wish you success,

Nelson J Sandidge 

Originally posted by @Evan Zeigler :

My fiancée has no interest in house hacking because of the obvious fact of living near your tenants. I think I might be able to convince her if our first property has an ADU, so it's like we're neighbors and not sharing walls.

Any tips on finding properties with ADUs?

 We have some detached multiplexes that look like separate properties except they share a water meter.  Each unit has their own yard, separate entrance, etc.  living in one of these units would have virtually no difference than living in a single family house with a neighbor.

Do  you know if Cincinnati has detached duplexes?   do you think your significant other would find this living arrangement acceptable?

Good luck

Hey Evan,

As an investor and agent in Cincy, i dont see a ton of properties that have an ADU (not saying they aren't out there).

I also have a fiancee who was not willing to house hack (luckily i was able to house hack alone before we moved in together).  Here are a few other investing options for you, not knowing exactly what your investing goals are (i assume rental properties):

1. ADU property

2. Live-in BRRRRR. This will allow you to gain some valuable experience doing a rehab and hopefully get rewarded with a fat chunk of equity in your primary residence. Let's just assume you gain $50k of equity doing a BRRRRR, that would be equivalent to 3 full years of saving $1300/mo doing a house hack AND you would get to live in your own house AND it will be newly remodeled. This is what i did with my fiancee (purchased a property for $155k, did $45k renovation, property appraised at $250k. refinanced all of my cash out to go buy other properties and now had $50k equity which "justified" me having a $1000/mo mortgage payment)

3. Try to do what you can to convince her that the sacrifice is worth the longterm benefits (this is a tough one, i'll admit)

4. Have her purhcase a property in her name for you all to live in and you purchase one in your name for a rental.

I love working with other young investors in cincy.  Reach out if i can help in any way!

@Jordan Noble

Thanks for your thoughtful reply! These are some great options for me to consider. I love the idea of a live-in BRRRR, as my dad has taught me to be relatively handy around the house.

Also, I sent you a connection request.