ADU versus duplex conversion

[Thuan Nguyen]

I am purchasing a SFH with an attached garage and a detached garage. I have the option to either convert the two garages into two ADUs or converting a SFH into a duplex with a detached ADU. Which of the two options will add more value to the property? Any suggestion?

[Jay Hurst]

Quote from @Thuan Nguyen:

I am purchasing a SFH with an attached garage and a detached garage. I have the option to either convert the two garages into two ADUs or converting a SFH into a duplex with a detached ADU. Which of the two options will add more value to the property? Any suggestion?

From a financing perspective, both for you if you want to refi and when you go to sell the property, a duplex with one ADU is acceptable to Freddie Mac. A single family with two ADU's is NOT acceptable to either Fannie or Freddie making the property that much harder to sell.