LOS ANGELES—For Sam Andreano, rental income from a detached accessory dwelling unit (ADU) in his backyard initially helped offset mortgage payments, and later provided a place for his son to land.
“[I] started out as just a regular homeowner,” said Andreano, a resident of Dana Point, Orange County, who began converting his detached garage into an ADU in 2019.
Researching and permitting took a few months, and total build-time was around eight months. He financed it with cash and a refinance. The entire investment, including all labor, materials, city and associated fees, came out to $165,000, and he rented the one-bedroom unit for $2,500 a month….