6 Reasons to Build an ADU

1) Home office or workout facility. A small 350 sq. ft. to 400 sq. ft. ADU is perfect for an office or workout facility.  They can be built without plumbing cost effectively.

2) Multi generational living.  A 550 sq. ft. studio or 850 sq. ft. two story or 1100 sq. ft. two story is excellent for housing a parent or perhaps a college age child going to school in the same city.

3)Rental.  You already own the land.  Building an ADU and renting it out will provide an excellent return on the dollars invested.

4) VRBO.  Perhaps you don’t want full time renters in the B Unit.  You can build 550 sq. ft. over a two car garage and rent it out occasionally as desired.  Why over a two car garage?  Preserve your future options for increasing the size of the ADU.

5) Add value.  Building an ADU of any size, but typically the bigger the ADU the better it is, will add value to your property.  People pay more, generally speaking, for buildings than for land.  If you don’t value the extra yard space more than the value an ADU will bring, you should build.

6) Sell. This is the same as adding value but includes the extraction component.  You can build an ADU and simply sell it, keeping your main house which is now the A unit.  This allows you to add value and cash it out at the same time. 

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ADUs in Austin - What you need to know………………………

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Investor Cost Benefit Analysis