ADU on existing duplex property - worth it?

[Damon Silver]

We have a 4/2 attached duplex up and running in an Oregon college town. The property has a decent-sized lot with a carport past its shelf life. We're considering knocking down the carport and/or putting in another ADU, ideally a 2/1, to bring our comps to 6/3.

Has anyone investigated or done this recently, and have advice on the subject?  We're looking to gather info about likely cost, pitfalls, time required, considerations when obtaining financing, etc.

[Alan Asriants]

Adding an ADU to a property is like adding an improvement to it like a pool, finished basement, sunroom, etc. Unlike those items, while you can charge for more rent, you can't have another separate tenant live there. And usually like those improvements an ADU won't improve your property's value 1 to 1 either. In simple terms: if you invest 200k into an ADU it won't increase your property value by 200k. Removing the carport will cause property to lose value too

Financing an ADU can also be expensive and tougher to find. Make sure you have a solid contractor who knows the permitting process and does great work. Best of luck