Is a Backyard ADU Worth It? We Ran the Numbers on a Real Lot

Is a backyard ADU worth it? We take a real lot in Durham, NC and check the zoning, ADU costs, rental income and size limits to find out. Michael Walliser, Founder and CEO of EasyDigz, works through the property live with Reynolds McFarlane, Managing Broker at Carolina Land Experts, and Christopher Britt, Partner at Enduring Oaks Venture Partners and Chief People Officer at EasyDigz. Using GIS parcel maps, the Durham UDO and EasyInsights rental data, they show the questions to ask before you build an accessory dwelling unit. In this episode we cover: • North Carolina's new ADU law and what it means for cities of 50,000+ • How families use ADUs, from housing aging parents to rental income • How setbacks and stream buffers shrink your buildable area • Why sewer access, not septic, can make or break an ADU • Durham ADU rules: one ADU per lot, 1,200 sf total, 1,000 sf per floor • ADU cost to build, ADU rental income and whether one unit breaks even Key number: at $1,750 a month in rent, one ADU breaks even at about $170K to $175K all-in. What would an ADU cost to build where you live? Tell us in the comments. CHAPTERS 0:00 Preview 0:29 Meet the guests and the plan 2:47 Why ADUs now: North Carolina's new ADU law 4:22 ADUs for family and rental income 5:57 Buying a smaller home with a backyard ADU 7:04 Can an ADU raise your land value? 8:40 Utilities and power upgrades 11:18 Setbacks, stream buffers and usable land 13:02 Analyzing a real Durham parcel on GIS 16:22 ADU rent comps with EasyInsights 18:05 Sewer vs septic: the real limiting factor 21:08 Durham ADU size rules 23:22 ADU cost vs rental income: does it break even? 26:55 What the land costs in 27703 28:25 Takeaways: allowed, maybe, no Numbers in this episode are napkin estimates for discussion, not investment, legal or zoning advice. Listen on Spotify: https://open.spotify.com/show/033Qkm4... Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast... All episodes: easydigz.com/podcast #ADU #BackyardADU #HowItRuns