Do ADUs generally increase property value?

[Jacob Carr]

HI,

First time poster here! After listening to some Bigger Pockets podcasts, my wife and I found that house hacking would be a really useful way for us to start investing in real estate. we currently live in a single story ranch home in Arvada CO, that has a finished basement with a kitchen. Our question for you pros is; would getting the permits pulled for a separate entrance ADU raise the value of our home? We're looking at about $25k to bring it fully up to code. Would that raise the value of our home to at least break even? Or would it be better to just rent the basement rooms without going full ADU?

Thanks in advance,

Jacob

[Mindy Jensen]

OK, feeling kind of silly here. I've never heard the term ADU. Can you share with me what this means, so I can get the abbreviation in the system?

@Russell Brazil @Jacob Carr