ROI on Accessory Dwelling Units

[Andrew Maxion]

Hey Investors!

As many of you may know, Governor Newsom signed a series of bills that made it a whole lot easier for homeowners to build ADUs in their backyard. I'm curious if anyone has any experience of these units having a good ROI when selling a property 5-10 years down the road. Also if anyone has a good approach in financing these types of projects without doing a Refi or a Heloc.

[Yonathan Randolph]

For ADUs that are enabled by state law (in main building or in separate building), ADUs (http://leginfo.legislature.ca....) must not have an owner-occupancy requirement between 2020 and 2025 per SB 13 (2019) (https://leginfo.legislature.ca...).

For JADUs that are enabled by state law (≤500 sq ft within the main building), they *do* have an owner occupancy requirement (http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV§ionNum=65852.22.)