Discover the Benefits of DADUs for Real Estate Investors

Accessory Dwelling Units, commonly known as ADUs or DADUs (Detached Additional Dwelling Units), are becoming increasingly popular among Real Estate Investors for several good reasons. Not only do they offer a variety of benefits, but they also present unique opportunities for maximizing Rental Profits and expanding property functionality. Let’s delve into what exactly a DADU is, and why it’s an excellent Investment option for Property Owners.

What is a DADU or ADU?

ADU stands for Accessory Dwelling Unit or (DADU, Detached Additional Dwelling Unit). It is a secondary housing unit on a single-family residential lot. DADUs are fully equipped living spaces that are separate from the primary residence, providing privacy and independence for the occupants. These units can take various forms, including Detached Structures like Cottages, Studio Apartments above Garages, or Converted Basements.

Benefits of DADUs:

1. Rental Profits:
   • One of the most significant advantages of having a DADU is the potential for rental income. By Renting out the secondary unit, Property Owners can generate additional cash flow, helping to offset Mortgage costs and increase overall profitability.
2. Increased Property Value:
   • DADUs can significantly increase the value of a property. The ability to offer a secondary living space adds versatility and appeal to the property, making it more attractive to potential Buyers and Tenants.
3. Flexible Use:
   • DADUs offer versatility in use. They can serve as guest houses for visiting family and friends, home offices, gyms, music studios, or rental units for long-term tenants, or vacation rentals.
4. Multigenerational Living:
   • DADUs provide an excellent housing solution for Multigenerational Families. They offer privacy and independence, while also allowing family members to live in close proximity to one another.

Additional DADU Information:

• The population of Metro Nashville has been on a steady year-over-year incline with the peak influx being estimated at a staggering 100 new residents per day.
• Homeowners in Davidson County within the zoning code of R (Residential one and two family) or Rs (Residential single family) can create a Detached Accessory Dwelling Unit (DADU) on their property.
• DADUs are popular among Homebuyers looking for Multi-Generational Housing. According to an article published by PEW Research Center, in 2021, the share of the U.S. population in Multigenerational Homes has more than doubled, from 7% in 1971 to 18% in 2021.

Statistics sourced from Greater Nashville Realtors; Learn more HERE.

Nashville on the Move: Your Real Estate Investment Partner

At Nashville on the Move, we understand the value of Investing in Real Estate, and growing your wealth! Whether you’re looking to buy a property with a DADU already in place, or you’re considering adding one to your existing property, we have the expertise and resources to guide you through the process.

Contact us today to get started!  We are here to help you Buy, Sell, or Invest in Real Estate with Confidence.

Photos from our Past Sale at 4011 Nebraska Ave Listed by Allen Perry