ADUs for Investors & Multifamily Owners
Evaluate the property before projecting the return.
Additional housing can create a new use for land you already own. A sound decision considers development cost, operating expenses and the legal use of every proposed unit.
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Compare the development paths
Review detached, attached, interior-conversion and garage-conversion options. Multifamily properties require a separate review of existing legal units and applicable pathways. Do not assume a headline unit count applies to your parcel.
Underwrite the full project
Include planning, construction, utilities, financing carry, reserves and contingency. Test rent assumptions against local comparable properties. Allow for vacancy, maintenance, management, insurance and taxes when estimating cash flow.
Check constraints before committing
Review title and easements, existing financing, access, utility capacity and the permit path. Ask qualified tax and legal advisers about ownership and rental obligations. A feasibility report is a planning step, not a guarantee of return, appraisal value or approval.
Start with the California ADU Handbook.
The March 2026 edition covers statewide ADU and JADU planning topics. Download the 55-page PDF free, with no signup required.
Bring the plan back to your property.
Virtual Estimates Available. Share your address and goals to discuss the next step.
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