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The Beginner’s Guide to ADU Investing (Accessory Dwelling Units)

ADUs (accessory dwelling units/attached dwelling units) are becoming more and more popular as housing costs and rents rise. ADUs provide homeowners a way to offset their monthly mortgage cost by renting out a separate property, all without needing to comply with multifamily zoning laws. You’ve probably seen ADUs before, either as garage conversions, attic conversions, walled-off master bedrooms, or small studios in the backyard.

Derek Sherrell, commonly referred to as “That ADU Guy”, has become a major proponent in getting the ADU movement going. He’s bought, built, and rehabbed numerous ADUs and has helped many homeowners more efficiently house hack thanks to this strategy. In this video, Derek gives a quick rundown of the finding, financing, building, buying, and zoning of ADUs, as well as some expert tips he’s learned along the way.

Have you ever bought or built an ADU? If so, how did your experience go, and what means did you use to fund it? Let us know in the comments below, Derek loves to connect with other ADU investors!

Join BiggerPockets for FREE 👇
Watch Derek’s Full Episode on The BiggerPockets Podcast:
Check Out Tarl’s Video on BRRRR Investing:
A Beginners Guide to Hack Your Housing and Live for Free:
What Exactly Is an Accessory Dwelling Unit?
Is Building an Accessory Dwelling Unit (ADU) a Worthwhile Investment?
Visit Derek’s Website to Learn More About ADUs:
Connect with Derek on BiggerPockets:
Follow Derek on Instagram:
@thataduguy or https://www.instagram.com/thataduguy/

0:00 The Great ADU Adventure
0:58 What is an ADU (Accessory Dwelling Unit)?
3:05 ADUs are Essential!
3:33 Become a Local ADU Expert
5:53 Single-Family vs. Multifamily Zoning
6:45 Attached vs. Detached Dwelling Units
8:50 How Much Do ADUs Cost?
12:04 How to Finance Your ADU
14:50 Recapping the ADU Essentials

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