Hillcrest garage conversion cost: $90,000
Monthly Rental Income: $1,500
Yearly Rental Income: $18,000
If we take the ADU cost of $90,000 and divide by the yearly income of $18,000, we can see that the ADU will pay for itself in 5 years! Once it’s paid for in full, your future income is phenomenal. At $18,000 of rental income per year, this results in $180,000 over 10 years and $360,000 in 20 years! You’ve just created a cash cow in your garage!
ADUs can be financed from the equity in your home!
A huge upside to building an ADU on your property is that you can use an equity line of credit to finance it. Superior ADUs has built relationships with specific lenders who are able to help you go through the process. The most exciting part of this is that indirectly your tenants pay for the cost of the ADU!
Let’s take the example of a homeowner whose home is worth $600,000 with an outstanding mortgage on it of $200,000. If the homeowner has good credit, he or she can obtain a $90,000 equity line for 4.43% APR on a 30-year loan (10-year draw term & 20-year payback), resulting in a monthly payment of $452. Let’s look at the numbers using the example above of the Hillcrest model’s garage conversion:x
Equity Loan
Monthly Rent
Monthly Loan Payment
Monthly Rental Income
Yearly Rental Income
Rental Income (over 20 years)

ADUs increase the value of your home!
ADUs result in tax benefits, saving even more money!

Call Us Today at 949-216-0686 to go over your personal financial benefits based on your property address!
*All numbers used in the previous examples are based on estimates only. For an actual cost and analysis, please reach out to our team at Superior ADUs.