Experience with ADUs in Portland

[James G.]

Portland area folks - I'd like to know if any of you have any first hand experience with Accessory Dwelling Units. Buying, selling, developing, renting etc... I am considering adding a studio apartment above my garage. I can pull a bit of equity out of my home ($30-$40k) and net about $400-$500 monthly cash flow (after PITI, maintenance, etc...).

The two key questions I have are: 1) Will installing the ADU negatively impact the resale value of my home despite the positive cash flow? and 2) In principle, would it be better to just take my equity and use it to secure a SFR or duplex? I know the answer to the 2nd question depends on a lot of variables... Let's assume that I can acquire a SFR in the range of $150-$200k that I can clear $100 monthly.