ADU vs RV in the backyard
I am in the market for a primary residence that I can house hack. I am looking for a single-family home with an ADU already built or a home with enough space in the backyard to build an ADU. My plan is to either short-term or mid-term rent the ADU. As I was analyzing the cost and time to build an ADU in my area, I thought wouldn't it be quicker and cheaper to just buy a used RV, park it in my background (if the neighborhood allows it), get a contractor to install an RV hook up, and then rent it out. What do you think? Is this a cheaper option? Are people willing to stay in an RV parked in someone's backyard for days or months?
Hey Monique Samuel,
I would ask, what are your end goals and which option would get you there the most efficient way?
Some thoughts:
- An ADU would add significant value to your property, but an RV wouldn't.
- The RV will depreciate over time, unlike an ADU.
- I assume that there would be more repairs/headaches associated with the RV.
- Smaller tenant pool.
Good Luck!
Real Estate Agent FL (#3506751)
Quote from @Devin James:
Hey Monique Samuel,
I would ask, what are your end goals and which option would get you there the most efficient way?
Some thoughts:
- An ADU would add significant value to your property, but an RV wouldn't.
- The RV will depreciate over time, unlike an ADU.
- I assume that there would be more repairs/headaches associated with the RV.
- Smaller tenant pool.
Good Luck!
Well, I was looking for something cost effective (to set up) at this time and one I can get a STR/MTR business started sooner. With the permits and inspections by the city to get the ADU completed, I assume it will take 3-4 months. With an RV, maybe 1 month. Besides 2-3 years from now, I plan to LTR the main house. If an ADU is on site, I will have to tightly lock up the ADU and closely monitor so the tenants do not sublet it. However with a RV, I can just get rid of it.
As for the depreciation on the RV, that I don't care about because my thought was to buy an old RV and fix it up.
A little late to this post but as Derek said I think the long-term goals are the important part here. The cost/time of the ADU are a con yet the added value and then appreciation of that added value are the bigger win in the long-term. If you are more concerned about time and short-term cash flow then you may want to go the path with the RV but that opens another set of issues with neighbors, zoning, etc.
If your long-term goal is an LTR, why not build the ADU with enough amenities to work as a long-term rental as well so that when you move out of the main house you can LTR two units?