Adu Gets Higher Rent than Apartments or Multifamily?

[Diane Tycangco]

Hello everyone, I just came from an ADU fair in Sacramento and the presenters were saying that ADUs rent for more money than apartments or multifamily. Is this true?

They said don't base your numbers on Rentometer.  They said to go to Zillow, remove apartments from your filters and put in the # of bedrooms. 

Personally, I wouldn't pay more to rent an ADU vs an apartment.

Their example was for a 1b1b standard quality 400-750 sq ft ADU costing $200k would rent for $2700!

What have you guys experienced?  I am skeptical. 

Thanks!

[Noah Laker]

No, that's not right at all. I manage and own multifamily, and I own a property with an ADU.

They probably were referring to cash-on-cash return. As a broker I tell my clients to purchase multifamily in Sacramento, or the occasional SFR. You can also construct an ADU if you desire but real properties make more than manufactured backyard homes... obviously!