Video: ADU Financial Benefits

BERKELEY — Rolf Bell: Some basic economics for ADUs if you choose to rent your ADU, for every $650 of rental income you receive, it buys down your mortgage by $100,000. That means if you get a rental income of $2,600, you can pay for a $400,000 ADU just on the rental income itself.

Many times we can even get far more than $2,600, especially for a two-bedroom ADU. I’m going to leave with you a chart that kind of helps you analyze ADU loan rates and payback times. That can give you a little bit of more information to think if this is right for you and you’re ready to move forward to expand your family’s residence. Good luck to you, and be well.