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Tax strategies
ADU
Build an Accessory Dwelling Unit — separate income plus higher property value. California eased the rules.
What it is
An ADU (Accessory Dwelling Unit) is a separate living unit on your lot: an addition, a converted garage, or a standalone cottage. California hasgreatly simplified permitting in recent years — one of the most accessible ways to add income.
Economics
- Investment — roughly from $150K
- Potential income — around $1,800/mo and up (depends on the area)
- Raises the appraised value of the main property
Where it works
ADUs are especially compelling in areas with buildable lots — Sunset, Richmond, parts of Noe Valley. In the strategy session we assess where an ADU pays back fastest.
Estimates only; they depend on construction, zoning and area. Tax aspects — with a CPA.