Accessory dwelling units make sense for a variety of reasons, so the real question isn’t “why?” — it’s “how?”

California legislation has made it possible for most properties to build an ADU. Regardless of lot size, current density or zoning, you’re likely allowed to build some form of ADU on your lot. So how do you pay for it?

Refinancing, a home equity line of credit or a construction loan can fund your ADU while your new rental generates cash flow. Not planning to rent it? Compare the monthly cost to what you’d spend on office space, or on an apartment for a family member or friend.

We’ve built ADUs for parents, young adult children, grandparents, renters, and owners who simply wanted more living space. Your ADU might start as a rental and end up as your retirement home. Adding a unit increases your property value and gives you options now and in the future — ADUs add flexibility.

For today’s loan options and a step-by-step budgeting approach, read our updated guide to financing an ADU.