Something that often shocks homeowners is the steep cost of building an ADU. But it’s important to think about the potential return on investment, especially when renting.
For instance, Miles knew he wanted to rent out his ADU for many years to come. Therefore, he was willing to pay more to build a larger unit, knowing that it would generate a greater cash flow in the long run. Now that’s smart planning!
Hot tip: Plan your ADU around your long-term goals. For Miles, this meant building and designing the ADU as a rental space. By including two beds, two baths, and a second story, Miles can now fully maximize his rental income.
Let’s take a look at the cost breakdown.
Permits & Other Fees: $9,516
Grand Total: $401,957
At first glance, these numbers may be shocking. But while this project had a hefty price tag, Miles is more than reaping the benefits. Currently, he is renting his ADU for $4,500 a month! Given that average rental costs in the area are around $3,000, the scope of how financially advantageous this investment is becomes clear. Not only is his ROI higher than what he could’ve imagined, but the extra cash flow even covers his mortgage!
Plan, hire, and manage your ADU project with Maxable.
Although building an ADU is a huge undertaking, you don’t have to do it alone. Rather than muddling through the various rules, regulations, and vetting process involved, Miles let Maxable take the heavy-lifting off his shoulders.
Our team of ADU Pros will support you at the most important milestones, from scoping designs for costly construction blunders to reviewing your GC bids to make sure you pick the best match for your ADU project.
Our vetted network of designers, and builders are there to manage your project with the care and expertise you deserve. Get started today by partnering with a Maxable ADU Pro!