Do you have an investment property and ask yourself, how can I increase my income off of this? Well, below I'm going to give you my top three reasons why I think an ADU is the best way to do that. I'm Hobie with The Jensen Group at Parkway Real Estate Co. in Chico, California and today we are going to break it down.
Reason number one why I think an ADU is the best way to go: You can build an ADU on a property that you already own; your primary residence or a single family residence you already own as a rental/investment property. You don't have to go acquire a new piece of land, it's already there and ready to go! Use that land and leverage it!
Reason number two: The State of California is actually almost telling us this is the way to go. They have told cities and municipalities that they need to ease some of their restrictions. This would be fees and requirements for parking or owner occupancy; a lot of those have been reduced or removed. The process has been streamlined more as well with preapproved building plans and quicker review times. Take advantage of that!
Reason number three: If you're an investor, you look at these kind of things, you currently have a single revenue stream on that existing rental property. Instead of just increasing that, you're actually building an entire new revenue stream on the same property. So when it comes to turn overs and things like that, they don't hit that property as hard. If you build an ADU on your primary property, you've now added a revenue stream to help offset your mortgage, property taxes, etc.
These are all great reasons why we have decided to invest in building ADUs and we would love to connect with you to talk about how you can start the process!