What is the ROI of an ADU DIGGS?
You are probably wondering how much it will add to your home value- you want to make a sound financial decision.
The ROI (return on investment) of an ADU comes in a lot of different ways, and in different combinations. Let’s take a look at just a few of them.
ADU DIGGS Increases Your Home Value
You assumed your home value will go up with an ADU, but you want to know how much. The answer is “it depends”, because not all ADUs are equal. Some ADUs are little more than glorified sheds, and a garage conversion could even decrease your home’s value.
In general, an ADU DIGGS returns one to one ROI- your home value will increase in an amount equal to the cost of the ADU. This is a ratio that is rising rapidly in this intense real estate market where ADUs are in hot demand.
An ADU Brings Positive Cash Flow
Your ADU will bring immediate positive cash flow.
Financing an ADU will add $800 – $1200 to your monthly mortgage. An ADU rents for $1900 – $2200 in Glendale and Los Angeles. This is an immediate $1,100 positive cash flow that you can spend now or use to pay down your mortgage.
Where else can you find an immediate positive cash flow income property?
Increased Cash Flow Over Time
Rents are projected to rise rapidly in Glendale and Los Angeles. This means that positive cash flow we mentioned above will also increase rapidly.
Also- ADU DIGGS is built to last – rent increases go in your pocket instead of expensive repairs!
Keep Your Low Property Taxes
An ADU has the lowest impact on your total property tax bill. Most of your property tax bill is for the value of your land, not the improvements.
Your taxes will increase about 1.1% of the assessed value of the ADU. (Be sure to check with your CPA for information on your specific situation.)
An ADU vs Alternative Space
An ADU is the least expensive way to solve a specific need. For example, if you are looking to house an elderly parent, or an independent space for your young adult, an ADU is hard to beat. It is cheaper than rent or the cost of buying a larger home.
Renting a remote work space is a lot more expensive than an ADU and we’ve already talked about the high cost of acquiring income property.
Is Your Time And Convenience Valuable?
Prefab has the best ROI for busy professionals because your time is valuable. Your ideal ADU happens with the push of a button.
Consider ADU DIGGS. Our team has decades of design and build experience. Choose one of our models and we take care of the rest. Pus, 90% of the construction happens in a factory, not your backyard.
Revisit our models. We offer a studio or one bedroom unit in a variety of “looks” designed to blend with your home and neighborhood. 2 bedroom options are coming soon.
