Touring a Brand New $180K ADU (Full ADU Walkthrough)
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- Опубліковано 8 лип 2024
- This ADU is probably nicer than your house. We’re not kidding. And for nearly half the price of an average home in the United States, most Americans wouldn’t mind owning or renting a property as good as this. This is a FULL ADU walkthrough of Derek Sherrell’s latest $180,000 accessory/attached dwelling unit, commonly known as an ADU. And once it’s occupied, this tiny house will rent for $1,900 a month! That’s a 1% rule property right there!
With high ceilings, lots of natural light, and appliances that most homeowners don’t even have, this ADU stands out in almost any market and, like Derek’s other properties, will probably have a line out the door of potential tenants. But it doesn’t just look good; this property boasts two bedrooms and bathrooms, an in-unit washer and dryer, a backyard, and its own utility splits.
If you want to see how this beautiful ADU was built, start to finish, check out the links before!
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Check Out Parts 1, 2, and 3 of Building an ADU from Scratch:
Part 1: • Building an ADU From S...
Part 2: • Building an ADU From S...
Part 3:
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The Beginner’s Guide to ADU Investing (Accessory Dwelling Units):
• The Beginner's Guide t...
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What Exactly Is an Accessory Dwelling Unit?
www.biggerpockets.com/blog/ac...
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How Much Does It Cost To Build A House In 2023?
www.biggerpockets.com/blog/ho...
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Visit Derek’s Website to Learn More About ADUs:
thataduguy.com/
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Connect with Derek on BiggerPockets:
www.biggerpockets.com/users/d...
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Follow Derek on Instagram:
@thataduguy or / thataduguy
00:00 Kitchen and Living Room
03:53 Bedrooms and Bathrooms
06:43 Details To Splurge On
07:45 The Backyard
08:59 Timeline to Build
09:26 Cost to Build
10:20 3 Tips to Find the BEST Tenants
11:40 Full ADU Tour
Your advice on using good-quality materials, like custom cabinets and strong countertops, is smart. Even though it might cost a bit more at the beginning, it's worth it because it makes tenants happy and means less work later.
You also gave some useful tips for finding good tenants. Checking their income, credit score, and talking to their previous landlords and bosses are important to make sure they'll be good renters. Great video!
Thank you! We are just trying to share what works in hopes to help others. Glad to hear that you see value!
Architect (California) here, having the most glazing on the West wall is the best way to get massive solar heat gain in the late afternoon sun and drive up your energy bill. Best to face your glazing to the North or East.
That can be true, but we try to combat that with exterier shades for the few hot months and find that the solar is key to making the space live larger than it really is. These units still meet strict Earth Advantage Platinun certification.
Thank you for all you do. This work is so important. Thank you for providing the information and help you provide.
Great stuff, always love content from That ADU Guy!
Great looking ADU!
EXCELLENT PRESENTATION
I love real estate especially the creatively aspect ❤
Stunning. Where are you only getting $1900 for a stand alone home with a garage? In Seattle that’d be at least 2500
Fabulous! Do you have a materials list online somewhere? I love the doors.
I had one built for only 40k
🎉🎉🎉Awesome!! Great job!!
Feel free to share size, market and strategy that pulled it off. We could all learn from you.
I think the kitchen righr at the door is a huge miss. Flip the floor plan and have kitchen at back with Long Island with seating and scrap the dining table. Longer entry and living room option. Need this for my parents!
Great tip! The plans are free and you can adjust the floor plan in the kitchen to meet your needs. I just finished building this plan on another site with the fridge to the left of the stove and used that area for an entry bench.
$180K! Wow.
Great work. For only 180k that’s great! Would cost about 300k where I’m at. But would also rent for around 2750. All relative. Love the finishes and space
What type of method did you use to fund ADU? What are some good options?
What method did you use to finance this project?
Beautiful...can I have the blue prints I like to build one for me ...
Love it. Where's it at though?
S Oregon
Does that include HVAC, electrical and plumbing? Or just the build?
Yes, all in - impact fees
Agree with your strategy higher quality at 10% below market rate attracts large pool of applications. Your three points of qualifying tenant income, credit score, and referrals are great.
However, how much discovery is too much? Run (at tenants expenses) criminal background check. Check for felony, judgements, tax liens, child support, restraining order, wage garnishments etc. What terms does your lease contain regarding tenant subletting (either a portion of living space and or parking space/garage), roommates, Parking of RV in the assigned parking space. Smoking policy? Discharge of fireworks? Firearms?Tenant required Renters Policy naming landlord as additional loss payee for property damage?
Peoples lives change: sickness, death of spouse, job loss, investment loss, divorce etc. Today’s Tenant/Landlord law leans heavily toward the Tenant. How do you protect yourself from prolonged non-rent paying (squatting) 6-18 months while attempting through the legal system to evict a non-paying tenant?
Love the design 😂. Beautifully built ADU.
Who are your architect and builder? Did you hire a general contractor? How can I contact them? phone #?, I'm planning to do an ADU in my backyard now, but don't know where to start? Thanks
Do tenants demand a dishwasher? I actually removed the dishwasher in my kitchen in lieu of more storage.
The ONE gold finish in the kitchen looks forced. Just keep it stainless steel with everything else. As a renter that would bother me daily.
What city is this ADU located in? What is the dimension?
Interesting. Apprciate the share and walk through. At $225 a sq ft; is that in the range for the neighborhood?
Sale price /ft is around $400 for smaller but new homes.
That 400/sf purchase would include the land, correct? So adjusting your ADU price per sf to include your land value would be still under the market, but not as wildly so as the 225/sf build price suggests? Or is that 400/sf a quote from builders with land price being separate? @@ThatADUGuy
@@nicolee9636 Yes, that is correct.
@@nicolee9636I think with a simple slab foundation $225 per sqt is too high. Should be $120 to $150 per sqt.
Do ADUs have its own address number or does it share it with the primary house?
An ADU will typically be permitted under the existing home/address. Sometimes you can request ½ fractional number to the existing main address.
Yes, they are required to have seperate address in this market, check your local zoning code to confirm this in your area.
Excuse my ignorance but what is an ADU? Where are you building homes for $180K. Does that include the cost of the lot?
Accessory Dwelling Unit. This build is in S. Oregon. No, the lot cost is not included but would be free in most cases, as it is the same lot as the single family home.
Don't be fooled, tenants prefer the microwave over just a hood. No tenant wants to put a microwave on the counter
Thanks for the feedback Phil. The idea here is that the kitchen lives more like a custom home than the apartments they just left. It is hard to find custom kitchens in todays market that still use that dated look. It is an great way to save space, you make a good point there.
Also another option is to have the the microwave you put into your lower cabinet, which has a drewer that slides out.
@@JakePetrosky good idea!
This short person NEEDS the microwave on the counter not over the stove
Where is this located?
Exactly
Southern Oregon
Island on wheels? Didn’t that island have an electrical outlet? How does that work then?
Wireless, like power over air? Maybe one of those bumper car style systems?
Looks like prep space. Ive had kitchens with island on wheels. I prefer them. Builders can place them where I don't want them. Hard to move because you would have to patch the flooring, etc.
This one was mounted, for the slide style we use a floor flush mount and a plug in pigtail than is accessed through the bottom of tbe cabinet.
@@ThatADUGuyhi what state is this ADU in? Beautiful!
@@lindasherman1999 S Oregon, Thanks Linda!
Serious question- how or why is this considered an ADU, and not just a house? Every ADU that I'm familiar with is above garage build. To me, this is just a house with an attached garage. No, hate, just genuinely curious.
Probably on the same lot as the main house, built in the back of side. If you want it designated as a separate house, you’d have to get the city involved with dividing your lot and separating utilities
This could be either or in our market. It is all about knowing your local zoning code. An ADU has advantages with lower fees, less parking needed and cheaper overall fees
This isn't an ADU. This is a cottage. Where's the 1st House? Hmmmm.
Expensive. $180k used to buy you a house, not some goofy ADU you can hopefully break even on after a couple of decades
Sounds like you are in a different market. Local governments are pushing ADUs in many areas. Zoning laws are changing. If zoning allowed that house to be sold on it's own lot, he could list it at double his price and start a bidding war. At $400k that would be a smoking hot good deal. If he paid cash for the build, his return is over 10% Plus tax write offs and appreciation on equity.
I’d be concerned about the lack of microwave as well as the tiny bathroom sink area. There’s no room for toiletries, a makeup bag, or a hairdryer.
Good info, thank you. These units could get a cabinet above the toilet and a micro hood combo could be used.
People can just buy their own microwave like I had to in my apartment. It didn't stop me from renting my current place.
@@hppavilionf50 good point
@@ThatADUGuy from a maintenance perspective, you made the right choice because you'll have one fewer appliance to maintain, repair, and replace!
@@hppavilionf50 there’s not a lot of counter space in that kitchen. In small spaces the more vertical storage you can incorporate the better IMO.
So then there is no microwave?
No, but there is a designated plug on the counter for one.
Bad advice
What aspects can be improved? We are always looking for feedback to give tenants a better product.
Who do you think you are FOOLING??? THAT IS NOT AN ADU!!!
THIS IS JUST USING A LOOPHOLE TO PUT 2 HOUSES ON ONE LOT WITHOUT HAVING TO SUBDIVIDE. MAJOR HEADACHE IN THE FUTURE.
5:19
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