Girlfriend's Guide to Building Your Dream ADU
Hey, ladies!
I am so excited to share with you all the amazing insights we gained from Derek Sherrell, also known as That ADU Guy, who recently joined our monthly meet-up to spill all the secrets about building Accessory Dwelling Units (ADUs). So, grab your favorite drink, get comfortable, and let's dive into the world of ADUs together!
Understanding ADUs
First things first, let's make sure we're all on the same page. An ADU, short for Accessory Dwelling Unit, is essentially a cozy living space in your backyard that can serve as a rental unit, a guest house, or even a home for a family member. It's a fantastic way to make the most of your property and add value to your real estate. Many people choose to rent out their ADUs long-term or list them on Airbnb. The options are endless!
If you want more detailed information, I highly recommend following Derek on Instagram @ThatADUguy and visiting his website thataduguy.com. He offers consultations where you can discuss your specific project and get personalized guidance.
Remember Your "Why"
Before diving into the nitty-gritty, it's important to remember your "why" behind building an ADU. It doesn't have to be extravagant or overly complicated. Sometimes, the simplest designs and concepts can create the perfect space for your needs. Keeping your goals in mind throughout the process will help you stay focused and make the right decisions.
The Power of Real Estate
Derek emphasized that one of the best ways to build wealth in real estate is to buy and wait. Let inflation work its magic and increase the value of your property over time. ADUs are an excellent investment opportunity, and they offer a steady income stream if you decide to rent them out. So, think long-term and consider the financial benefits ADUs can bring.
Navigating the Planning Stage
Now, let's talk about planning your ADU. One crucial aspect is understanding the zoning regulations in your area. Zoning codes are like the rule book of how we make money in real estate, yet few people take the time to study or understand them. Just because you have a house with an extra kitchen doesn't automatically make it a legally zoned ADU. Become an expert in your local zoning code by reaching out to your local zoning planner or department. Make calls, send emails, and even visit their offices to gather all the necessary information.
Pay attention to the conditions, permit needs, and impact fees that apply to ADUs in your area. Just because ADUs are allowed in your city doesn't mean they're allowed on your specific property. If you already own a property, you're limited to what's allowed based on the existing zoning. If you're in the market for a new property, look for ones that have zoning regulations permitting ADUs. Keep an eye out for properties with zoning codes ending in "1" as they typically have outright permission to build ADUs.
Did you know that there are approximately 30,000 homes in Denver currently zoned for ADUs? That's a fantastic opportunity if you're located in the area! However, do note that Denver has an owner occupancy requirement for ADUs, which means that when you sell your property, you'll need to transfer that requirement to the new owner. Keep an eye on any ongoing legislation that may affect this requirement, and make sure to stay informed.
Choosing the Right ADU Type
Choosing the right type of ADU is a crucial decision that will impact both the cost and functionality of your project. Here's a closer look at the different ADU types to help you make an informed choice:
Attached ADU: This type of ADU is connected to your existing home and shares a common wall or structure. It is usually the least expensive option since it leverages the existing infrastructure of your primary residence. However, when considering an attached ADU, it's important to prioritize soundproofing. Adding soundproofing measures will ensure privacy and minimize noise transfer between the main house and the ADU. You can explore options like soundproof insulation, double-pane windows, and solid-core doors to create a peaceful living space.
Detached ADU: A detached ADU is a separate structure from your main house, typically located in your backyard. Tenants generally prefer detached ADUs because they offer more privacy and a sense of independence. If you're considering financing your ADU project, buying a property that already has a detached ADU can be an excellent option. You can live in the main house while renting out the ADU, providing you with additional income.
Garage Conversions: One of the biggest untapped opportunities for ADUs lies in converting existing garages into livable spaces. If you have an underutilized or unused garage, it can be transformed into a cozy ADU. Garage conversions often involve renovating the space to meet living standards, including insulation, plumbing, and electrical work. Converting a garage can be a cost-effective way to create an ADU while maximizing the use of existing structures.
Above Garage ADU: If you have a garage with a stable foundation, building an ADU on top of it can be a smart choice. This approach allows you to take advantage of the existing structure while minimizing costs associated with foundation work. Building above a garage can be particularly efficient when combined with new construction. The existing foundation provides a stable base, simplifying the building process.
Internal "Carve Out" ADUs: Some homes have unique features or abnormalities that can be transformed into ADUs. These "carve out" ADUs involve converting a portion of your home, such as a basement or an unused space, into a separate living unit. The advantage of this type of ADU is that it's relatively simple to install a one-wall kitchen. However, adding a bathroom may require more extensive renovations, including plumbing and ventilation.
Basement Conversions: Basements offer ample space for ADUs, but they require careful planning and adherence to building codes. Before converting your basement into an ADU, ensure that you meet the necessary requirements, such as minimum head height and egress regulations for safety and comfort. Additionally, consider implementing soundproofing and vibration-proofing measures to create a quiet and peaceful living environment.
When choosing the right ADU type, consider factors such as your budget, the layout of your property, privacy requirements, and the regulations in your area. Each type has its own considerations, advantages, and potential challenges, so take the time to assess your specific needs and consult with professionals to make an informed decision.
Remember, the goal is to create a functional and comfortable living space that aligns with your lifestyle and goals.
Love, M
Mackenzie Page is a Realtor, Investor, Writer, and Herder-of-Chickens living on her small hobby farm in Denver CO with her partner, and rescue pup. As a board member of Rocky Mountain Women Invest she runs the website, blog and future podcast. Follow, like and share!
Disclaimer: The information provided in this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are for general informational purposes only.