581: The Hidden Passive Income Source in Your Own Backyard w/That ADU Guy
BiggerPockets Real Estate Podcast
BiggerPockets
4.8 • 16.5K Ratings
🗓️ 10 March 2022
⏱️ 60 minutes
🧾️ Download transcript
Summary
What do you think of when we say ADU (accessory dwelling unit)? If you’re like most homeowners, you probably think of a back house, a mother-in-law suite, or a converted art studio. But what if you don’t have a home that comes with a pre-fitted accessory dwelling unit? What if you don’t want to put in the money (or time) to build one out. Are you left with any options, or are your ADU dreams dead in the dust?
If you’ve wanted to start building passive income streams through your primary residence, then we’ve got good news for you. With us today is Derek Sherrell, also known as “That ADU Guy”, precisely because he is THE person you want to talk to when it comes to accessory dwelling units on your property. Derek knows his stuff, consulting dozens of homeowners on how an ADU would fit into their property and how much passive income they could make as a result.
And it’s not just about building some other structure in your backyard. You can convert attics, basements, garages, and even portions of your house into accessory dwelling units. Not only does this allow you to save on the cost of new construction, but it also gives you another option to build wealth, pay down your mortgage, or simply profit from a rarely used portion of your home.
In This Episode We Cover:
The exact criteria homeowners should look for in potential ADU-friendly properties
Attached vs. detached ADUs and the benefits (and cash flow difference) of both
The four main challenges when building, financing, or strategizing an ADU
What to look for in existing ADU structures, whether it’s a garage, back house, or basement
How to become an ADU expert quickly (and for free) with simple city zoning information
And So Much More!
Links from the Show:
Joe Asamoah's BiggerPockets profile
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Transcript
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| 0:00.0 | This is the bigger Pockets podcast show. |
| 0:03.1 | 581. |
| 0:05.9 | You can sit there with the bat on your shoulder |
| 0:07.7 | and watch all these houses come down the pipe. |
| 0:10.4 | And when you see one that has ADU potential, |
| 0:13.2 | after you've done this a few times, it's so obvious. |
| 0:15.6 | It looks like a beach ball coming down, right? |
| 0:18.0 | Belt high fastball. |
| 0:19.3 | That's the best way I can thrive it, |
| 0:20.9 | is you have this really easy criteria, |
| 0:23.5 | and then you just sit there and wait for one to come along. |
| 0:26.5 | What's going on everyone is David Green, your host of the bigger Pockets podcast. |
| 0:38.0 | The show where we teach you how to find financial freedom through real estate. |
| 0:41.5 | We do that by bringing on different guests, |
| 0:43.9 | as well as sharing information ourselves to sort of highlight for you what it looks like |
| 0:48.4 | to find that financial freedom that you seek. |
| 0:51.2 | Today's guest is a specialist in accessory dwelling units or ADUs. |
| 0:55.3 | If you've ever wondered what is an ADU, |
| 0:57.4 | why do people talk about them? |
| 0:59.0 | Why are there so many acronyms in real estate that I don't understand? |
| 1:01.9 | We're going to learn a lot about that today. |
| 1:04.2 | This is a very, very, very relevant and important sort of like a hot topic |
... |
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