Have you ever built an ADU in Denver? Help!

[Lisa Singer]

Hello BP family!

I just purchased my first rental property and it is on a large enough lot (with alley access) to add an ADU. The city will allow a 650 sqft unit. I need a builder or some really good sub-contractors to get the job done. Does anyone have experience in this area? I thought it would be close to $150 sqft, but I got a verbal estimate for twice that! Should I continue to pursue this additional income stream or scrap it?

Cost of existing 3 bed/1bath house: $204,500 with a $31,000 rehab. I will rent it for $1750. I suspect the ADU will rent for close to $1500 as a 2 bd/1 bath.

Other thoughts for the lot are to build a tiny house and rent on AIrbnb.

Thank you!

Lisa