Buying a 2nd property vs. building ADU?
Hello, this is my first time posting so let me know if I do something wrong!
We currently house hack a 1890's triplex that we have more or less completed a BRRRR and gotten stabilized. However, it is an oddball in that it has a 500 square foot vault (like think concrete bunker with steel vault door). This is attached to the unit of the house we currently live in.
We are trying to figure out our next step — we have had an architect draw up plans to convert the vault into livable space — part would become a 4th unit (studio) that we would intend to use as a STR, and part would become additional living space for our unit (take it from 1ba to 2ba, add a laundry/storage room…)
or, we could leave it more or less as-is, get our unit rented, and buy a new property to move into (ideally looking for something with a detached ADU we could rent to keep building/scaling our little portfolio).
I’d like to get some personalized input around what might make the most sense given our specific goals and market conditions. But, what kind of person should I even look for that could advise us on our strategy? Who would be familiar with the trade-offs between continuing to improve a property or buying another… and have insight into short term as well as long term rentals… and be familiar with my locational market?
Thanks! Appreciate any thoughts either on who I should be looking for, or on the decision itself. also let me know if there is a better category I should post this question in!
Most Popular Reply
An ADU is not an approved use with a duplex/triplex in Colorado Springs. I just spoke with the planning department about a similar project in OCC about a week ago. The senior planner basically told me that I had the right idea, but that the city wasn't set up for it. In my case, the property is zoned R2, so I had more hurdles than you would. You'd need a variance, and I gather there's a snowball's chance in hell at this point you'd get one for this.
Additionally, the new ADU ordinance from last year says that a STR license will not be issued for any property that has an ADU. If you build an ADU, there's a good chance they'll deny your renewal on those grounds.