ADUs from an Investor's Prospective
Since I am interested in rental potential, here is an in-depth 3-part article on projected costs and ROI for an ADU from an investor's perspective, published by Author Kol Peterson in Portland, Oregon.
- ADUs from an Investor's Perspective (Part I)
- ADUs from an Investor's Perspective (Part II)
- ADUs from an Investor's Perspective (Part III)
Kol is the writer of a book called Backdoor Revolution-The Definitive Guide to ADU Development. Kol also offers a free ebook: 10 ADU Design Principles as well as a free pdf: The ADU Resource Packet & other articles. (Shared with permission from Kol. I have no business relationship with Kol, just am impressed with his writings on the subject.)
While no one can promise a specific ROI for any theoretical projected investment, with the rents as high as they currently are in the bay area, the old fashioned 1% rent ratio or better can be possible, while having the luxury of having a very handy property to manage.
It is always good to have as clear a picture as possible when planning your building project, as design changes can be costly and the further into the project one goes, the more changes can sometimes cost.