Meet the Martinez family: Carlos, Elena, and their two teenagers, Sofia and Miguel. Like many families, the Martinezes were looking for ways to boost their income without upending their lives. Their solution? Transforming their spacious backyard into a money-making opportunity with an ADU (Accessory Dwelling Unit)!
After researching local regulations and running the numbers, Carlos and Elena decided to invest in building a 700-square-foot ADU behind their home. They worked with a local contractor to design a modern, efficient one-bedroom apartment complete with a full kitchen, living area, and its own small patio.
The total cost of the project, including permits and construction, came to $120,000. It seemed like a big investment at first, but the returns quickly proved its worth. They’re now renting out the ADU for $1,800 per month to a young professional who loves the quiet neighborhood. This extra income covers their mortgage payment, effectively making their own housing cost-free! As an added bonus, the ADU has increased their property value by an estimated $200,000.
Elena shares, “We were nervous about becoming landlords, but it’s been surprisingly smooth. Our tenant appreciates the new, private space, and we love the extra income. It’s a win-win!”
The Martinezes use the rental income to pay down their mortgage faster and save for Sofia and Miguel’s college funds. They’re also building long-term wealth through increased property value.
Carlos adds, “We’re teaching our kids about smart investments and passive income. This ADU is setting us up for a more secure financial future.”
For families with unused yard space, an ADU can be a fantastic way to generate extra income while also increasing property value. It’s an investment in your property and your future!