An ADU, or Accessory Dwelling Unit, is a secondary housing unit built on the same property as your primary residence. Think of it as a tiny home with a big impact—whether for rental income, a guest suite, or a place to stash the in-laws.
ADUs are the Swiss Army knife of real estate. They can:
• Generate rental income
• Increase property value
• Create space for multi-generational living
• Offer home office or guest quarters options
It’s a solid investment with flexible uses—and it might even make your neighbors jealous.
The average cost to build one of our ADU’s is around $200,000, depending on number of bedrooms, overall size, and selected upgrades.
Our studios range from $98,000 to $158,000, our 1 bedrooms range from $148,000 to $220,000, and our 2 bedrooms range from $195,000 to $287,000. All of our ADU’s are custom stick built though so we can tailor to your exact needs and placement on the property!
We’ve hand selected one of the best lenders in Colorado, CMG Financial, to bring unmatched investment capital to the table, giving you access to some of the best loan terms out there.
There are several ways to fund your ADU dreams. Some popular options include:
• Cash-Out Refinance
• Home Equity Line of Credit (HELOC)
• Renovation or Construction Loans
• Personal loans or savings
Not sure what’s best? Take our Tiny Home Quiz to find out how your property stacks up.
Glad you asked!
HELOC: Think of it as a revolving credit line with variable interest. You draw funds as needed throughout your project.
Cash-Out Refinance: You replace your current mortgage with a new one for a larger amount, giving you a lump sum to cover ADU costs.
Both come with pros and cons—check out our Financing Page for more details.
Short answer: Yes!
ADUs typically increase property value by boosting square footage and rental potential. However, the bump in value depends on your local market and the quality of the build.
Absolutely!
ADUs can generate passive income through short-term vacation rentals or long-term tenants. Just make sure to check local zoning laws to see what’s allowed in your area.
At Kindred, we focus on timely project completion. We emphasize efficiency and communication to ensure you are always in the loop and there are no surprises or delays.
Depending on the project size and permits, most ADUs take 6 to 12 months from planning to completion. Conversions, like turning a garage into a living space, may take less time than building a new unit from scratch.
Yes, you’ll need to pull some permits. Requirements vary by city and county, so it’s essential to check local regulations. Don’t worry—we will help you navigate this entire process!
Not every property is eligible for an ADU—zoning regulations and lot size restrictions apply.
No real catch, but there are some things to consider:
Financing: ADUs are an investment, so it’s essential to pick the right loan.
Maintenance: Just like any home, ADUs need upkeep.
Regulations: Every area has unique rules, so you’ll need to stay on top of local zoning requirements.
But the benefits? They’re hard to beat.
Ready to build your dream tiny home?