This is a very common question I receive, so I wanted to share the details here for others to learn from.Some Less Common Renovations:-ADU Build Out- Building an Accessory Dwelling Unit (ADU) from the ground up in the Denver Metro Area is an expensive and time-consuming process (costing over $200k and taking 2+ years to complete).

If they don't pre sell, we definitely stage (with our own staging furniture and accessories) all of the common rooms and the master bedroom.  

Should you move from the property or move your homestead exemption to another property any ADU automatically reverts to an "Accessory Structure;" which does not allow for living quarters. 

Light 80 $ 6.00 10 $ 40.00 $ 880.00 Wood & Laminate Floors N/A 0 $ - 0 $ - $ - Countertops & Backsplashes Backsplash over kitchen /bathroom sinks Light 4 $ 40.00 4 $ 50.00 $ 360.00 Kitchen Appliances Refrigerator, range, microwave; *Possible dishwasher Moderate 4 $ 250.00 4 $ 50.00 $ 1,200.00 Plumbing Fixtures Miscellaneous Light 8 $ 40.00 8 $ 20.00 $ 480.00 Electrical Fixtures & Devices Miscellaneous Light 8 $ 40.00 8 $ 20.00 $ 480.00 Interior Trim Carpentry N/A 0 $ - 0 $ - $ - Hardware & Accessories Miscellaneous Light 8 $ 8.00 8 $ 20.00 $ 224.00 Landscaping Trim lawn, bushes, trees Light 0 $ - 10 $ 60.00 $ 600.00 Door replacement N/A 0 $ - 0 $ - $ - Tub & Surround N/A 0 $ - 0 $ - $ - Shower Stall *Possible shower tile clean/reglaze Light 0 $ - 0 $ - $ - Cabinets Full Kitchen Install Moderate 8 $ 160.00 6 $ 80.00 $ 1,760.00 Garage Door *Possible garage door installation Light 1 $ 650.00 8 $ 40.00 $ 970.00 Cut Glass Windows & Mirrors N/A 0 $ - 0 $ - $ - Hot Water Heater N/A 0 $ - 0 $ - $ - Electric Service Panel Ground new electrical installs Light 1 $ 250.00 6 $ 40.00 $ 490.00 Roof N/A 0 $ - 0 $ - $ - HVAC System Replacement of sole heating system for heating/cooling system Moderate 1 $ 3,000.00 30 $ 60.00 $ 4,800.00 Insulation N/A 0 $ - 0 $ - $ - Sheetrock Replacement *Dependent upon opening main floor plan by removing walls Light 8 $ 35.00 8 $ 35.00 $ 560.00 Plumbing Systems *Dependent upon moving of main BR toilet, sink for better BR layout Light 5 $ 40.00 8 $ 40.00 $ 520.00 Window Replacement Replacement of windows throughout.

Light 80 $ 6.00 10 $ 40.00 $ 880.00 Wood & Laminate Floors N/A 0 $ - 0 $ - $ - Countertops & Backsplashes Backsplash over kitchen /bathroom sinks Light 4 $ 40.00 4 $ 50.00 $ 360.00 Kitchen Appliances Refrigerator, range, microwave; *Possible dishwasher Moderate 3 $ 250.00 3 $ 50.00 $ 900.00 Plumbing Fixtures Miscellaneous Light 8 $ 40.00 8 $ 20.00 $ 480.00 Electrical Fixtures & Devices Miscellaneous Light 8 $ 40.00 8 $ 20.00 $ 480.00 Interior Trim Carpentry N/A 0 $ - 0 $ - $ - Hardware & Accessories Miscellaneous Light 8 $ 8.00 8 $ 10.00 $ 144.00 Landscaping Trim lawn, bushes, trees Light 0 $ - 10 $ 40.00 $ 400.00 Door replacement N/A 0 $ - 0 $ - $ - Tub & Surround N/A 0 $ - 0 $ - $ - Shower Stall *Possible shower tile clean/reglaze Light 0 $ - 0 $ - $ - Cabinets Full Kitchen Install Moderate 8 $ 160.00 6 $ 80.00 $ 1,760.00 Garage Door *Possible garage door installation Light 1 $ 650.00 6 $ 35.00 $ 860.00 Cut Glass Windows & Mirrors N/A 0 $ - 0 $ - $ - Hot Water Heater N/A 0 $ - 0 $ - $ - Electric Service Panel Ground new electrical installs Light 1 $ 100.00 6 $ 20.00 $ 220.00 Roof N/A 0 $ - 0 $ - $ - HVAC System Replacement of sole heating system for heating/cooling system Moderate 1 $ 2,600.00 30 $ 40.00 $ 3,800.00 Insulation N/A 0 $ - 0 $ - $ - Sheetrock Replacement *Dependent upon opening main floor plan by removing walls Light 8 $ 35.00 8 $ 30.00 $ 520.00 Plumbing Systems *Dependent upon moving of main BR toilet, sink for better BR layout Light 2 $ 45.00 4 $ 40.00 $ 250.00 Window Replacement Replacement of windows throughout.

This part of the property will be your primary residence and may not qualify for a 1031 exchange.ADU or Guest House: If the new property includes an Accessory Dwelling Unit (ADU) or a guest house, you may choose to rent it out for additional income.

.• On any lot with an existing single-family dwelling unit, where regardless of zoning, the lot has any of the following General Plan Land Use/Transportation designations:- Residential Neighborhood- Mixed-Use Neighborhood- Urban Village or Urban Residential- Transit Residential or Rural Residential- Downtown- Mixed-Use Commercial• On two-family (duplex) lots and on multifamily properties• In a low-density cluster development if it conforms to development standards of the R-1 zoning district, and the development and use standards of the low-density cluster permit.Minimum Lot Size3,000 square feetNo minimum lot sizeMinimum Setbacks from Rear and Side Property Lines0 feet for 1-story conversions and new construction.5 feet for second-story ADUs constructed above a garage or accessory structure.0 feet for 1-story conversions and new construction.4 feet for second-story ADUs constructed above a garage or accessory structure4 feet minimum rear and side setbacks required for detached ADU in multifamily developments.Maximum HeightFor detached ADUs:Single story – 18 feet maximumSecond story – 24 feet maximumAttached ADUs are subject to the height limits of the main home.Single-family properties - No change in height requirements.Multifamily properties - 16 feet maximum height for detached ADUs.Rear Yard CoverageArea covered by the ADU, accessory buildings, and accessory structures, except pools, shall not exceed forty percent (40%) of the rear yard.Area covered shall not exceed forty percent (40%) of the rear yard or up to 800 square feet, whichever is greater.Detached ADU Allowed LocationsRear yard only, at least 6 feet away from primary dwelling.May be attached to a detached garage or other existing accessory structure.Must meet minimum setbacks for an accessory building in accordance with Section 20.30.500.No changes except that ADUs that exceed forty percent (40%) of the rear yard must maintain minimum 4 foot side and rear setbacks.

.• On any lot with an existing single-family dwelling unit, where regardless of zoning, the lot has any of the following General Plan Land Use/Transportation designations:- Residential Neighborhood- Mixed-Use Neighborhood- Urban Village or Urban Residential- Transit Residential or Rural Residential- Downtown- Mixed-Use Commercial• On two-family (duplex) lots and on multifamily properties• In a low-density cluster development if it conforms to development standards of the R-1 zoning district, and the development and use standards of the low-density cluster permit.Minimum Lot Size3,000 square feetNo minimum lot sizeMinimum Setbacks from Rear and Side Property Lines0 feet for 1-story conversions and new construction.5 feet for second-story ADUs constructed above a garage or accessory structure.0 feet for 1-story conversions and new construction.4 feet for second-story ADUs constructed above a garage or accessory structure4 feet minimum rear and side setbacks required for detached ADU in multifamily developments.Maximum HeightFor detached ADUs:Single story – 18 feet maximumSecond story – 24 feet maximumAttached ADUs are subject to the height limits of the main home.Single-family properties - No change in height requirements.Multifamily properties - 16 feet maximum height for detached ADUs.Rear Yard CoverageArea covered by the ADU, accessory buildings, and accessory structures, except pools, shall not exceed forty percent (40%) of the rear yard.Area covered shall not exceed forty percent (40%) of the rear yard or up to 800 square feet, whichever is greater.Detached ADU Allowed LocationsRear yard only, at least 6 feet away from primary dwelling.May be attached to a detached garage or other existing accessory structure.Must meet minimum setbacks for an accessory building in accordance with Section 20.30.500.No changes except that ADUs that exceed forty percent (40%) of the rear yard must maintain minimum 4 foot side and rear setbacks.

It is possible she could be charged with accessory before the fact, but that would be a little tougher, but not impossible.

There are different forms of house hack (Accessory Dwell Unit (AUD), Mother in Law (MIL), rent by room, rent one side of a duplex,....)