Buy tiny home to put on property or save for next property?

[Abigail Joanna]

Hey bigger pockets family, I'm facing a dilemma that consists of me choosing whether or not to buy a tiny home and put it on my current home's property, creating an ADU to rent out or to save that money that I would put into the tiny home and save for my next purchase. Thoughts?

[Nathan Gesner]

Quote from @Abigail Joanna:

Do the math. If it costs $100,000 to install an ADU and it rents for $1,000 a month, then it may be worth it. If it costs $150,000 and the ADU rents for $750, then it's probably not worth it.

Here's a guide on how to analyze a property. Do the math and see if an ADU is worth the cost and effort.

https://www.biggerpockets.com/blog/rental-property-cash-flow...