How Can An ADU Provide Extra Living Space And Income?


Published: May 15, 2023 | By: Tom Ginsberg From Adore Homes

Why ADUs?
  • Have your family move near you
  • Earn rental income & reduce monthly payments – we can show you how!
  • Have an extra room for private working space
  • Increase your property’s value
  • Build offsite
  • Affordable housing solution (prices starts at $229,000 all-in)
CA Laws
ADU requirements

Every ADU must have…

  • A bathroom, kitchen(ette), and
  • Bedroom/Studio space
  • 4 ft lot line setbacks
  • 6 or 10 ft setbacks from other structures


All cities in California must…

  • Allow ADUs up to 800 sq ft
  • Waive parking requirements within 0.5mi of public transit
  • Respond to your plan submission within 60 days


Most cities must…

  • Allow ADUs up to 1000 sq ft or even 1,200 sq ft
  • Have permitted or are permitting ADORE projects (Bay Area)
Single-family Zoning (As of January 1, 2020)
  • Statewide consistent guidelines
  • 1 ADU and 1 JADU per lot
  • 60-days approval – ministerial
  • Reduced permit fees
  • No parking requirements (if w/n 1⁄2 mile of transit stop)
  • No owner occupancy laws
  • 4-ft. side and rear setbacks
  • Front yard ADU’s possible
Duplexes & multi-unit (As of January 1, 2020)
  • Existing multifamily dwellings qualify
  • 2 detached ADUs per multifamily lot
  • Developers can build ADUs concurrent with a new multi-family structure
Depending on your space

ADORE Homes offers the largest selection of models.

Flagship models
  • ADORE Crema 510 $267,900, all in
  • 510 SQ FT – 1 BR/1BA Dimensions: 34′ x 15′


  • ADORE Horizon 800 $313,900, all in
  • 800 SQ FT – 2 BR/2BA Dimensions: 40′ x 20′


  • ADORE Horizon 933 $319,900, all in
  • 933 SQ FT – 3BR/2BA Dimensions: 40′ x 23′ 4′′
Why NOW? (From the Realtor’s Perspective)
  • Sellers on the fence – add an ADU to increase your property value and be more appealing when its time to sell
  • Buyers

( a ) Target smaller homes that are ADU-feasible – deals close faster than the more expensive homes
( b ) Buy above desired monthly payment limit and use the ADU rental income to help with the mortgage payments.

Why NOW? (From the Homeowner’s Perspective)
  • Rising interest rates- Since early 2022, mortgage rates have climbed from 3% to over 6%
  • Housing market uncertainties- HUGE growth rates in housing prices for the last 3 years…with uncertain future
  • Erratic material costs- Fuel, lumber, labor, etc.
  • Bearish stock market- A looming recession?
But lastly…
  • The CalHFA funds are limited. First come, first serve basis.
  • A CalHFA grant can shave $40k off your ADU.
  • The CalHFA ADU grant offers qualifying homeowners up to $40,000 to offset pre-development and non-recurring closing costs.
How to Finance?
  • Home Loan- Cash-out refinance
    Home Equity Line of Credit (HELOC)
  • ADU Grant programs (for qualified homeowners)
  • Renovation or construction loan
  • Cash
  • Home equity contracts and other innovative financing
  • Other personal loans
Why ADORE Homes?
  • ADORE offers the largest selection of ADU models ranging from 378 sq ft – 2,400 sq ft
  • ADORE ADUs are pre-approved in cities — Cupertino, San Jose, Fremont, Napa and Sonoma Counties, and Santa Rosa
  • Budget-friendly
  • ADORE models can be customized to fit YOUR needs
  • Topnotch partner providers: Designers, Architects/ Engineers, Permitting Contractors
  • Excellent customer support experience
  • Specialized lenders in ADUs
  • Start to finish 6-8 months

Did you know that close to 25% of all homes sell without ever hitting the open market?

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