What is an ADU? An ADU is an accessory dwelling unit and it’s an alternative living space that is commonly referred to as a “mother-in-law” apartment. An ADU is a separate living space located on the same property as a single-family home. Some ACUs are attached and others are not.  

The purpose of an ADU is to provide a full living space that is independent from the single-family home. The ADU provides what a single-family home would – a place for tenants to eat, sleep, cook, live, shower, use the bathroom, etc.  

An ADU no longer is a space to just house close family members; it can be an income generating asset. ADUs are increasing in popularity and the ways in which an ADU can be financed is expanding, as well.  

The current real estate market and how much money to get the space in proper living condition will determine if an ADU is a good investment. An ADU is usually worth the investment if the owner can get back the initial investment in a reasonable amount of time. Investors need to look at how long it will take to build the ADU and get it rented to determine how quick it will take to become profitable.  

An ADU can increase a property’s occupancy rate and with today’s economy, people are looking for this type of space to rent and live in.  

An ADU can be a great real estate strategy to diversify a portfolio and they can be funded by hard money loans.  

At Murk Investments, we are local to the San Diego area and are comfortable working in this market better than a national or regional lender. We lend on properties in most San Diego markets. One of the most important factors we look at is the cash the investor is bringing into the deal. All of our loans fall under a 65% loan to cost. 
 
Disclaimer: 
This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our site constitutes a solicitation, recommendation, endorsement, or offer by Murk Investments Corp. or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. 

 
All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the site constitutes professional and/or financial advice, nor does any information on the site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. Murk Investments Corp. is not a fiduciary by virtue of any person’s use of or access to the site or content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the site before making any decisions based on such information or other content. In exchange for using the site, you agree not to hold Murk Investments Corp., its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other content made available to you through the site.