$65K ADU Garage Conversion Tour + BIG Cost-Saving Tips

An ADU garage conversion can transform your extra space into a cash-flowing rental property in your own front or backyard. ADUs (accessory dwelling units) like this have become the norm in 2023 as home prices stay sky-high and permitting pains run rampant. The best part about this strategy? You can do it for FAR less than it would cost to buy another rental property, allowing you to take home more passive income without paying off a half-a-million-dollar mortgage.
If you want to know the right way to do a garage conversion ADU, Derek Sherrell, AKA “That ADU Guy,” is your man. He’s been building ADUs longer than almost anyone else and has the cost-saving tips and space-enhancing design you need to turn where you park your cars into a real rental property. We’ll tour Derek’s one-bedroom, one-bathroom, 500+ sq ft ADU and hear exactly how he built, designed, and budgeted for it.
What extra space could you turn into another passive income stream? Would you try your hand at a garage conversion? Let us know in the comments below!
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Watch Derek’s Full Interview on the BiggerPockets Podcast:
• Your Home's Hidden Pas...
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The Beginner’s Guide to ADU Investing (Accessory Dwelling Units):
• The Beginner's Guide t...
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What Exactly Is an Accessory Dwelling Unit?
www.biggerpockets.com/blog/ac...
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10 Things to Consider When Investing in Accessory Dwelling Units:
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Visit Derek’s Website to Learn More About ADUs:
thataduguy.com/
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Follow Derek on Instagram:
@thataduguy or / thataduguy
00:00 Saving Space in Your ADU
02:03 Cutting Down on Costs
03:25 Kitchen and Living Room
05:37 Bathroom
06:13 Bedroom
06:55 The Final Cost

Пікірлер: 52

  • @FallingAsh
    @FallingAsh Жыл бұрын

    More bigger pockets videos like this!

  • @vermonburt2252
    @vermonburt2252 Жыл бұрын

    Great content..definitely more ADU CONTENT👌🏿👍🏿

  • @LouisPorterJr
    @LouisPorterJr Жыл бұрын

    Thanks for the info!

  • @justindabarber6905
    @justindabarber6905 Жыл бұрын

    Appreciate this info

  • @marketinggenius4438
    @marketinggenius4438 Жыл бұрын

    Super good stuff!!

  • @23Michael23
    @23Michael23 Жыл бұрын

    Looks great for the price.

  • @ramram8979
    @ramram8979 Жыл бұрын

    Love it, tell me more!

  • @galdamez874
    @galdamez874 Жыл бұрын

    Great video, like always. When you're charging for utility service, what software, systems do you use? If you could create a video, that would be great!

  • @literallyonlyfanz2308
    @literallyonlyfanz2308 Жыл бұрын

    Bro looks like Brandon with a trimmed beard 😂🔥

  • @steveelling9604

    @steveelling9604

    Жыл бұрын

    You're right, he does! Cloned.

  • @kmilesSC
    @kmilesSC Жыл бұрын

    Hell Derek. Do you have a set of plans you sell for that 2 car garage with adu?

  • @MillennialMike
    @MillennialMike Жыл бұрын

    Derek is such a stud! Even if he is a firefighter

  • @ThatADUGuy

    @ThatADUGuy

    Жыл бұрын

    Mike!!! What's up Brother

  • @adamcooper1024
    @adamcooper1024 Жыл бұрын

    Could really use help on the east coast. Baltimore, MD specifically. Builders are quoting me 175-200k! Someone please send a lifeline 😅!

  • @ThatADUGuy

    @ThatADUGuy

    Жыл бұрын

    Ouch!

  • @Enochulate88

    @Enochulate88

    Жыл бұрын

    I saw someone get quoted 40k for a small pool so they spent 7k and did it themselves. Good luck

  • @ThatADUGuy

    @ThatADUGuy

    Жыл бұрын

    @@Enochulate88 diy at its best!

  • @Enochulate88

    @Enochulate88

    Жыл бұрын

    @@ThatADUGuy they did a really good job with everything it wasn't igger rigged

  • @jamescombs2118
    @jamescombs21185 ай бұрын

    A normal size fridge is so much better than a tiny one. Other than that this is beautiful!

  • @Kiim_Bishop
    @Kiim_Bishop4 ай бұрын

    I didn’t even know you could cut your own granite!!! 🤯 That’s wild

  • @diytacoma5758
    @diytacoma57589 ай бұрын

    🔥

  • @jillpetik1003
    @jillpetik1003 Жыл бұрын

    That's impressive. My contractor was going to charge me $170k to build a very similar design but 2 bd

  • @user-nc8se9in8o

    @user-nc8se9in8o

    7 күн бұрын

    In which state?

  • @jillpetik1003

    @jillpetik1003

    6 күн бұрын

    Oregon

  • @rosejones2932
    @rosejones2932 Жыл бұрын

    Very helpful. However, I am not a do it your-selfer . I would have to give something like this a to the contractor.

  • @ericdeguzman8182
    @ericdeguzman8182 Жыл бұрын

    Hey Derek- love your videos and all these great tips! Can you comment on your experience with tankless water heaters from a property management standpoint? I love the space savings but am concerned with the additional maintenance required for those vs tankless heaters. Have you had any issues with your tenants using them? Thanks and keep up the great work and content!

  • @ThatADUGuy

    @ThatADUGuy

    10 ай бұрын

    Hi there! Great question. No issues and we have lots of them. Going on 10 years on the oldest ones.

  • @codyryan5750
    @codyryan57502 ай бұрын

    Is there a link to a floor plan or layout for this ADU?

  • @LV_TK
    @LV_TK Жыл бұрын

    Hey Derek what brand 24" range is that and where do you source this and most of your appliances from? Actually need 2 of these and as you know 24" are harder to find and more expensive... Awesome content !!!

  • @ThatADUGuy

    @ThatADUGuy

    Жыл бұрын

    At times I also use the GE 24" range but it is about $100 more. Around $1,000 delivered.

  • @YanaSoul108
    @YanaSoul108 Жыл бұрын

    Hey Derek! Your videos inspire me to someday build my dream adu :) did you build this entire building for 65000 or convert an existing garage and add a floor above? I’m trying to estimate the cost of adding a second floor above my attached single story garage 😊

  • @ThatADUGuy

    @ThatADUGuy

    10 ай бұрын

    Hi there! This was for the new build from ground up, not adding a floor.

  • @oaneb002
    @oaneb002 Жыл бұрын

    What private electric meter are you using on this ADU? Where can I get one from?

  • @ThatADUGuy

    @ThatADUGuy

    10 ай бұрын

    Generic digital meter from the local supply house. They are around $250.

  • @JillWrightNailTechEvent
    @JillWrightNailTechEvent8 ай бұрын

    Really good advice, really terrible music. Please, no more distracting background music to annoy the viewers who can’t stand that type of music & want to hear you speak. ✌️

  • @luisarevalo8394
    @luisarevalo8394 Жыл бұрын

    What market is this ADU in?

  • @caderidenour642

    @caderidenour642

    Жыл бұрын

    Southern Oregon

  • @Enochulate88

    @Enochulate88

    Жыл бұрын

    @@caderidenour642 I need to move there

  • @rajdeepjana1658
    @rajdeepjana1658 Жыл бұрын

    I'm from India.....can i learn from these videos?As American housing/real estate is different from Indian one...... Pls help

  • @rajdeepjana1658

    @rajdeepjana1658

    Жыл бұрын

    I watch BIGGER POCKET VIDEOS.....EVEN REAL ESTATE ROOKIE CHANNEL

  • @brotherkossi

    @brotherkossi

    Жыл бұрын

    I don't get the question, but I believe you're already learning by watching the videos. Grab the concepts and adapt them to your local realities. No one from the US side knows the realities of the Indian real estate market, so you're the best person to do the adaptation.

  • @rajdeepjana1658

    @rajdeepjana1658

    Жыл бұрын

    @@brotherkossi thanks sir

  • @Enochulate88

    @Enochulate88

    Жыл бұрын

    I can show you how to grow mushrooms. Any kind you want. You'd be better off then real estate lol

  • @frank12876
    @frank12876 Жыл бұрын

    I find it really hard to believe these numbers unless the guy is milling the lumber himself. Ain't no way he built a garage, adu and installed asphalt for $65,000. There is more to this story.

  • @MrJacobegg

    @MrJacobegg

    Жыл бұрын

    He said in the video that he's a builder and does most of the work himself. I was recently quoted $20-25k in materials to add an ADU above an existing 400 sqft garage. So $65k in materials cost for a budget 550-ish sqft ADU over a garage is totally believable if one is smart about their design and materials purchases.

  • @ThatADUGuy

    @ThatADUGuy

    Жыл бұрын

    This is cost as the planner, builder. Asphalt was $2.05 per sf and not included in the $65k. These numbers are not easy to meet, but possible.

  • @jgn1977
    @jgn1977 Жыл бұрын

    I wonder how much a 600 sq ft apt would rent for.

  • @ramram8979

    @ramram8979

    Жыл бұрын

    I rent out a 400 adu on top of my garage, going for $1350 in denver

  • @MrJacobegg

    @MrJacobegg

    Жыл бұрын

    Depends where you're located. Rent on a 600 sqft apartment is going to vary a LOT by location. In NYC, that would probably be a couple grand, at least. In backwoods Mississippi... a fair bit less than that.

  • @ThatADUGuy

    @ThatADUGuy

    Жыл бұрын

    Market rate for this unit in this market is around $1200

  • @Enochulate88

    @Enochulate88

    Жыл бұрын

    ​@@ThatADUGuy🎉

  • @jamescombs2118

    @jamescombs2118

    5 ай бұрын

    @@ramram8979 😢