Are you interested in multifamily investing but overwhelmed by the prospect of buying an entire apartment building?

What if you could dip your toe in the water with accessory dwelling units or ADUs?

The ADU strategy involves either converting a SFH into multiple units or building standalone, detached units on a single family lot.

After several years of building ADUs for clients and friends, Derek Sherrell decided to leverage those skills into developing projects that would help him gain financial independence.

Two decades later, Derek is the real estate investor behind That ADU Guy. His platform teaches the strategy to help others earn passive income and address the affordable housing crisis at the same time.

On this episode of Financial Freedom with Real Estate Investing, Derek joins me to discuss the different categories of accessory dwelling units you might consider, convertible ADUs versus standalone, detached units.

Derek walks us through the process for getting permission to build accessory dwelling units, explaining why everyone should consider building an ADU at their primary residence and how to get financing for such a project.

Listen in for Derek’s insight on the profitability of building accessory dwelling units and find out if ADUs are the right steppingstone into YOUR multifamily investing career!

Key Takeaways

What’s behind the popularity of accessory dwelling units or ADUs

Derek’s insight on the different categories of accessory dwelling units

The process for getting permission to build an accessory dwelling unit

Why everyone should consider building ADUs at their primary residence

How a real estate investor might scale Derek’s ADU strategy

  1. Buy SFHs with infill development potential, turn into multiple tax lots
  2. Buy modular units and turn single family lots into multifamily ones

What Derek looks for in buying a house for accessory dwelling units

The cost vs. profitability of building accessory dwelling units or ADUs

Strategies for getting financing to build an accessory dwelling unit

How standalone, detached ADUs impact the value of a property

What Derek loves about the ADU strategy

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Connect with Derek Sherrell

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Email [email protected]

Resources

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Financial Freedom with Real Estate Investing by Michael Blank

Podcast Show Notes

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