Austin: Building Granny/ADU Unit for short term cash flow?

[Kristal Pecherski]

Hello, my husband and I are looking to build a back unit for some extra cash flow. We are new to investing. We only own our primary property and hoping to expand. Currently have our eyes on a Kanga System since it seems they have the whole package in terms of city code knowledge, and pre fab units. However, for a studio unit with bathroom and kitchenette, under 200 sq. we are looking at 56k. Expensive, no? We are in the Ridgetop 78751 area. Any advise on if we should use a loan or what to save and pay cash? Builders, codes, just general experience?

Thank you,

[David Ivy]

@Kristal Pecherski

I'll send you a PM or email with some contacts that can help. However, before you move forward, I wanted to be sure you've looked into whether your property meets the latest regulations on Accessory Dwelling Units enacted by Austin City Council in November 2015. For example, your lot has to be at least 5,750 sqft. (or roughly 0.132 acres). You can see more info here. The full ordinance is here.