Buying a Single Family Home w/ Mother-in-Law Suite

[Christopher Dru]

I'm actively searching my target market for a multifamily property (duplex or triplex) that I can live in and rent a unit(s) simultaneously.

I've considered broadening my search criteria to feature single family homes with a mother-in-law suite (accessory dwelling unit or ADU).

This would give me the option to either live in the main house or ADU while renting the other. I may also qualify for a lower down payment with traditional financing given this purchase may not be defined as an investment property.

Does anyone have any experience owning a single family home with an ADU as an investment property? I know this isn't as efficient as owning property like a duplex or triplex. If/when I decide to move in the future, I could hopefully rent the main house and mother-in-law suite together or separately.

What are your personal thoughts on a single family home with mother-in-law suite strategy as a first-time real estate purchase and investment property?