What is ADU?

Question

I have been checking a few houses to invest. One of the houses I'm looking at says " ADU" what does exactly mean? It is historically reserved so If I purchase this out, it would have a lot of restrictions?

Dock Newell Jr · Answer

"ADU" stands for Accessory Dwelling Unit. An ADU is a secondary housing unit or separate living space on the same property as the primary residential dwelling. ADUs are often referred to by various names, including "in-law unit," "granny flat," "backyard cottage," or "secondary suite."

The primary purpose of an ADU is to provide additional housing on a single-family residential property. ADUs can come in different forms, such as a detached cottage, a converted garage, a basement apartment, or an addition to the main house.

Before purchasing a property with an ADU or historically reserved property, you should consult with a local real estate agent or attorney familiar with the local regulations. You can guide any restrictions or compliance issues. Understanding these factors will help you make an informed investment decision.

Nolan Faselt · Answer

ADUs are a great way to bring in another revenue stream and offset the cost of the home. If done right can be very beneficial to the owner and cost effective living solution for the resident staying in the ADU.

Tomoko Hale · Answer

Thank you so much for the info.

Tomoko Hale · Answer

Thank you!

Carlos Ptriawan · Answer

For me I much prefer SF in SF zone that has ADU rather than buying at duplex in MF zone. Why ? you could live in better neighborhood while still enjoying the rental income that would offset mortgage cost.And with ADU you don't even need to meet with your tenant regularly, it is still almost the same privacy if layout is good.

Carlos Ptriawan · Answer

Just tips: if you could find broken homes with broken ADU with DOM above 30 days, that's a steal LOL

It was wayyyyyy better than buying : good house with lot of acres where you could build an ADU.

Be contrarian from the masses to generate opportunity LOL

Dock Newell Jr · Answer

No Problem. Here to help if you need it!

Tomoko Hale · Answer

Thank you for the info! How come ADU can offset my cost?

Tomoko Hale · Answer

Thank you so much for the info. Why ADU's can offset the cost?

What is ADU?

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