Updated 3 months ago on . Most recent reply
Considering moving to home with attached ADU
Hello!
In need of advice-- my husband and I are considering moving to a new housing development in Madera, called Riverstone. It seems to be an up and coming development and we see the potential for our investment to appreciate. Here is where we need advice.
OPT 1: We own our home free and clear, so really we can buckle down and start saving for our next real estate investment and just live where we do now. With that being said, there are things we don't "love" about our home and would need to pour money in to feel good about staying. We also have about 60k of debt between car payments and a HELOAN that we took out on our home for an investment property.
OR
OPT 2: We buy the home in Riverstone, which includes a NextGen living space. The NextGen is an attached ADU to the main home with it's own entrance. It is a 550 SQ Ft, 1 bed 1 bath complete with washer dryer, kitchen (excluding a stove but we would add a hot plate), and living area. With this option, we would assume a mortgage of ~$1900 (including HOA), but we would no longer have the prior $60k of debt, because we would pay it off with the sale of our home. Month to month, our living expenses would increase by ~$1200-$1300, without renting the NextGen out. We think we would be able to rent out the apartment for about ~$1200-$1500 a month (but we don't know for sure). The pros of moving here are it is a brand-new home, and we don't need to do anything to the home other than move in. Our current home seems to have something come up every other week. (We spend about 10k a year just in maintenance and fixes). We have two small kids and there are a multitude of parks around for them to play at.
Quality of living wise, Riverstone wins. Safe and practicality wise- our current residence wins. We are just unsure how easily we would be able to rent out the attached ADU. In the new house, we would be less than 5 minutes to a major hospital (Valley Children's Hospital) and 10 mins away from major shopping areas in Fresno. Any advice and insight would be appreciated. We don't want to heavily impact our ability to invest in the future, however this seemingly provides the opportunity for a great source of additional income and comes with some major lifestyle upgrades.
Most Popular Reply
Hi @Raylene Pranich nice to meet you here on BP! Here's what I think, If the ADU rents for $1,200–$1,500, that changes the math significantly. You eliminate the $60k debt, move into a newer home with fewer surprise repairs, and potentially offset most of the higher payment. Being close to Valley Children's and Fresno amenities is definitely a plus!
The key variable is certainty. I would confirm actual rental comps specifically in Riverstone, make sure the HOA allows separate ADU rentals, and run your numbers assuming lower rent and some vacancy. If it still works conservatively, Option 2 could improve both lifestyle and long-term positioning. If rental demand is uncertain or restricted, staying put keeps you financially safer and more flexible. Always stress test your scenarios.