Building an ADU or buy a triplex

[Jeffrey Zhang]

Hi, I'm facing two options: build an ADU or buy a triplex.

ADU of 1200sqft, 3bed 2bath

cost: $250k~$300k

appreciation: not sure. the value of existing SFR is $550k, 1100sqft.

collecting rent: $3000/month

Triplex:

purchasing price: $900k

PITI with 25% down: $6k/month

collecting rent: $7400/month

If building the ADU, most likely I can cash out all the investment, finish the circle of BRRRR.

Also like the rental income of Triplex.

Which one will you choose? Thanks in advance.