Can You Actually Make Money on a Home Addition?

Renovating your home is one of the biggest investments you can make. During the process, you can do several things that will help you recoup your investment while improving your property’s value. The key to improving your home is adding space, using a custom design, and increasing functionality. While many people complete a home addition to put their home up for sale eventually, that isn’t the only reason to consider an addition.

During a home addition, any space added can be turned into a money-making opportunity. One of the best ways to add space is an Accessory Dwelling Unit (ADU). These ADU home additions are a popular way to add an income stream in the Bay Area. During your home addition, these can be built in the back of the main home for rental unit opportunities. Your new ADU can immediately pay for itself by creating a new stream of rental income.

Drafting Cafe Architects offers pre-designed ADU house plans that save time and money. These unique, pre-designed units have a set timeline, price, and design specifications that are on-trend and modernize your home. While there are no one-size-fits-all solutions, the DCA team can pair you with one of our remodel architects to help you decide which plan would work best. The architect will also be able to help you set an ADU budget.

Is Building an ADU Worth It?

Absolutely. You’ll increase your property value while creating new streams of income. Having both short
and long-term rental income can help offset the day-to-day expenses of the additional space. As travel continues to increase as Covid-restrictions ease, people will be looking to visit the Bay Area. This is an amazing opportunity to take advantage of the increase in tourism dollars.

The Home Addition Planning Process

There are a few things to keep in mind when planning a home addition project, especially one involving an ADU. Consulting with a DCA renovation architect helps determine what needs to be done, including the drawings and specifications, determining the budget, and deciding on a timeline that accommodates your needs. Understanding what a home addition entails can provide a snapshot of what to expect and what you should avoid.

The process of building an addition or an ADU can be time-consuming and tedious. The structure must be permitted based on local zoning and building codes, but the DCA team customizes these plans to meet your needs. When building an ADU, the height, size, and location of your property matter. With various pre-designed ADU plans available to accommodate the use, it will be easier to determine what works and what does not.

Once you start planning, the ADU budget will become clearer. The amount needed to complete the project varies based on the type of renovation, addition, and size. Having a clear idea of how the addition of a new structure will help justify the cost because spending more does not always end up in a higher return on the investment. It’s important to remember you are building another home, not dropping in a shed. The costs will be similar to building a small home due to all the infrastructure additions that are probably not there today: plumbing, sewer, electric, cable and more.

The DCA Difference

Creating an addition can add discretionary income to build savings, help pay monthly expenses, or pay off outstanding debts without impacting the current budget. The expert team at Drafting Cafe Architects is the best choice when it comes to planning and executing the design and building of your ADU. For more information on a money-making home renovation and addition, contact our team today.


Get in touch with us. We would love to help you get your project off the ground