Has anyone invested in an container ADU?

Question

I live in Atlanta and the city allows ADU’s. I’m thinking about investing in one and wanted to know realistically, is it worth the investment? Airbnb income vs long term lease. Cost to build a 20ft container vs a 40ft container?

Robin Cornacchio · Answer

Containers are allowed where I live. Also, I’m fine with it not adding value to my current home since I don’t want to have to pay the additional taxes on it. There are several container construction companies in Atlanta. I was just trying to get info on passive income from it. STR vs LTR.  Thanks.

Brian Barch · Answer

I think the novelty of it would do better as an STR assuming your area of Atlanta allows STRs.

I’d use awning.com to start to estimate revenue potential, and compare to Zillow for LTR rents. Neither is perfect, but it’s a start

Brian Barch · Answer

I live in the ATL metro, have researched and ADU for the sake of parents living on the property.I think the core challenge is, when it's all said and done, I think It's hard to build something you are proud of for less than $250K all in when you factor in the testing, permits, land prep, utilities, the building.  I don't doubt that someone that is super handy can do it cheaper, but that's about the price conclusion I've come to.

But that said, I think it's absolutely worth it depending on location and subject to STR regulations.  I think it greatly increases the value of your home as well.  Not to state the obvious, but you have to be okay having others on your personal property all the time.

Michael Baum · Answer

Hey @Robin Cornacchio. What I would do first is make sure a container would be allowed as an ADU in the city. Many municipalities don't allow them at this time.

Next up would be paying to do it. There won't be any mortgage on something like this. Either you have the cash, leveraging your home equity or personal loan to get it done.

There is a lot to unpack with something like this. Also, a container ADU most likely won't add any value to your property. It isn't going to be considered as real property vs a stick built ADU.

Alex Scattareggia · Answer

I am very interested in how this project turns out. I sent you a PM as well, but the difficulty I have had when looking at these kind of projects (at least in my markets) is getting an accurate quote on what the total cost will be.  It seems to vary pretty wildly.  Good luck!

Robin Cornacchio · Answer

@Brian Barch

Thanks Brian, I never heard of Awning.com. I checked it out and it's exactly what I'll need moving forward. Have you used them before? Any feedback as far as there services?

Robin Cornacchio · Answer

The company that builds the container ADU’s in Atlanta has financing. They look pretty cool too. Not sure if it’s the economical way to go, but he does a great job.  Cargobykvn.com

Chris Watkins · Answer

It might make more sense as an ADU purely for the 'cool' factor, which you can charge a higher rate for. Lots of people have heard of container houses and are curious, and you could market it as a way for people to 'try before they buy'.

It will be hard to finance and it won't add much value to your property via an appraisal, and it will cost the same or more than a stick build (but will be faster, likely).

Pros and cons!

Brooklyn McCarty · Answer

1. Are you allowed to place these?

2. You likely won’t be able to finance it

Jon Martin · Answer

There's a place in California (Container Stop) that does 20 by 8 containers for $45K (2022 pricing, likely more now) with basic mechanicals and finishes in place. IMO 8 feet is an awkward dimension for anything but a bathroom so you would need a sandwich at least 2 together to make it feel like a somewhat normal home. When I talked to the rep, to add the 2nd one on without an additional kitchen or bath was maybe 70% the price of the base unit IIRC. They aren't as economical as you think because they still have to frame in and insulate the interior wall, so the container itself is really just the subfloor and glorified siding.

Plus, once you factor in the cost of a foundation, utility connection etc who knows if you are actually saving money. The example above is close to $300 SF, so might be more economical in California but doubtful in the Southeast. YMMV

Has anyone invested in an container ADU?

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