Maximizing rental property in West Colfax

[Laura Ratcliff]

I own a bungalow in West Colfax, near the Perry St light rail that I initially lived in and have kept as a long term rental. There has been considerable development around the house in recent years, primarily row/slot homes. The house is in okay shape--some nice updates, a lot of quirks, original windows, creaky floors, etc. The property is zoned U-RH-2.5, and an ADU is allowed. There is currently no garage at the house. I am looking to maximize my income from this property and am curious about insights on how to best do this. It's my understanding that if I built an ADU, I could use it as a STR as long as my long-term tenants in the main house carried the license. Is this correct? Does anyone have experience building/renting an ADU in this part of town? Or is it best to hold off, wait for building costs to potentially cool, and see the direction of the neighborhood? My overall plan is to keep this property long-term as an income producing property.