Building Garage w/ADU

[Josh Gold]

Hey BP! I’m looking at a property in Oregon that has room for an ADU in the back and am wondering what experience you have with building/renting one out? I’m thinking Air B&B because then my out of state family can take advantage of it as well. What are your thoughts/experience? A little more info: Main house would be primary residence and is a little over 1100sqft ADU would be about 550 sqft (size is due to city restrictions) over 600 sqft garage. Plenty of yard Air B&B or VRBO would be preferable but can rent month to month if I get that suggestion (thoughts on vacation rental vs tenant?) Also want to know what you think it might cost to build and suggestions for financing it if you have comments on that. I also have a duplex in same city and am currently house hacking that. Thanks everyone! -Josh

[Travis Rasmussen]

@Josh Gold

Hi Josh! Short term rental and Superhost here.

My wife and I started doing it out of extra bedrooms in our house. This was originally to test out the Airbnb model before we moved on a property.

It ended up being great, we mainly had guests on the weekend for weddings (we are near wineries) and generated 400-800 in extra income.

The benefits of doing Airbnb vs a long term tenant are as follows

1. The guests leave

-You don't need to worry about someone being at your house 24/7 or roommate problems because they are only there for a short amount of time

2. Decent extra income depending on the area

The biggest downside? 

-You have to clean and flip the rooms, this by far takes the most amount of time when done properly. 

I hope this gives you some insight!