Single family with ADU vs Duplex

[Wyatt Kailiehu]

Question is, is it worth the time/money to buy a single family home with a detached garage to turn into a ADU(additional dwelling unit) creating a 2 unit property. Or just find an existing 2 unit multi-family to BRRRR. Recently loosened regulations and a simplified permitting process have made ADUs popular in my area. Depending on location permitting fees for ADUs have been waived to promote growth. Any advice would be appreciated, thanks!

[Barbie Steele]

I think it depends on what your investing strategies are. In my area, duplexes are rare with a lot of competition for them, so buying a SFR and doing a garage conversion makes sense AS LONG as you are focused on cash flow and not trying to flip or leverage into the next property. @Matthew Forrest is absolutely correct regarding the appraisals, which makes flips and refi's difficult.