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Special thank you to Nima Moradi of NorCal ADU Builders for participating and providing the footage of their ADU process!

TIMESTAMPS:
0:30 ADU construction process
4:00 ADU benefits, passive rental income
4:57 Success on Airbnb
5:26 Maximization of multi-family property
6:27 House hacking
8:30 Net cash flow per month
9:09 Advice for homeowners and investors

WHAT IS AN ADU?
ADU stands for accessory dwelling unit. An ADU is a permanent additional housing structure built on a property that already has a main home or main structure. You may have heard them referred to as granny flats, casitas, guest houses, or in-law suites. They can be built on a single-family lot or multi-family lot (duplexes count as multi-family).

An ADU has its own entrance, separate from the primary house, as well as a kitchen, bathroom, and living space.

Accessory dwelling units can be rented year-round and add a lot of value to your property. They can be garage conversions, stand-alone units, attic or basement conversions, or be attached to the main house.

ADUs are exceptionally flexible, and most owners find that their use for the unit evolves over the years, including passive rental income.

Nima is just one of many California residents that have taken advantage of the state's progressive ADU regulations to maximize the potential of his multi-family property.

Nima and his wife own a triplex property that was already bringing in passive rental income from renting two of the living spaces. After learning about ADUs, they realized their backyard was a prime spot to build a FOURTH liveable space that could be rented, and so they got to work.

Nima decided to take on some of the construction work himself which was quite a feat while also working a full-time job but through all the hard work, their ADU was built and ready for move-in after just four months.

The final cost of the project came out to about $76,000, including design and permitting fees. This is well below the average cost for an ADU of this size since Nima did a lot of the construction work himself, but unless you have the construction experience and time, you may want to leave that job to a general contractor.

"That definitely came at the expense of a lot of long nights, a lot of effort, and a lot of sweat that went into it." - Nima

Finding a reputable general contractor can be daunting. Even Nima ran into some problems with one of his subcontractors, which is why Maxable is devoted to helping homeowners find vetted and experienced ADU professionals to help complete your project. Visit http://maxablespace.com/ for more details.

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Music credits:
New Lands by Alex-Productions | https://onsound.eu/
Music promoted by https://www.free-stock-music.com
Creative Commons / Attribution 3.0 Unported License (CC BY 3.0)
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