ADUs with Chasin RE

I've built, rented, and held accessory dwelling units across Orange County and the North Bay — as a licensed broker, a lender, and an investor putting my own capital into the ground. Here's the math, and the properties, behind why ADUs are one of the best risk-adjusted plays in this market.

Why ADUs work — three equations

This is the same framework I run before recommending an ADU to a client or committing my own capital. Three separate ways an ADU can create value, independent of appreciation.

1Cost per unit — SFR + ADU vs. new duplex

Blending a lower per-unit basis by adding onto land you already control.

SFR acquisition$1,000,000

ADU construction$250,000

SFR + ADU total · 2 units$675,000 / unit

New-build duplex, 2 units$750,000 / unit

Not universal to every market, but it's one of the first checks I run on any investment analysis: can I create a second unit cheaper than I could buy one outright?

2Retail $/sqft vs. cost of construction

The spread between what you build for and what the market pays for finished square footage.

Newport Beach retail price per sqft$1,467 / sqft

Typical ADU construction cost$400 – $500+ / sqft

Potential equity created~$1,000 / sqft

An ADU rarely appraises at full retail $/sqft on resale — but in every project I've built, the finished value has still exceeded the construction cost. The spread is the margin.

3Cash flow on newly deployed capital

Same $300k, two very different outcomes depending on where it lands.

$300k deployed into a $1M SFR (debt-financed)~$0 / mo cash flow

$300k deployed building an ADU~$3,000 / mo gross rent

Approx. cash-on-cash return10%+

The SFR route isn't a bad outcome — it's a legitimate strategy for high-income earners who want a depreciable asset as a tax shelter and are fine with muted cash flow. The ADU route is the one I don't see matched many other places without taking on more risk.

Reference

California ADU Handbook

The state's official guide to ADU regulations, financing programs, and permitting pathways — a good starting point before we scope your project.

Download the handbook

Let's pencil it out

Have a lot, garage, or backyard in mind?

I'll walk your parcel, your lender options, and the numbers with you — no obligation, same underwriting shown above.

Email ChasinRE

ChasinRE · 809 S Anaheim Blvd #101, Anaheim, CA · CA DRE #01447886 · NMLS #1130391
*Based on the author's personal ADU investments to date; individual results vary by market and project.

Built & Rented

ADU portfolio

A running list of ADUs I've built or advised on for my own portfolio and for friends and family — with actual rents achieved, not pro-forma guesses.

Orange, CA

608 N Orange St

1 bed · 1 bath

$2,500per month

Costa Mesa, CA

118 Magnolia St #B

1 bed · 1 bath

$3,000per month

View on Zillow →

Orange, CA

183 N Lester Dr

Studio

$1,875per month

View on Zillow →

St. Helena, CA

735 Hunt Ave #B

2 bed · 1 bath

$3,275per month

View on Zillow →

Orange, CA

781 N Maplewood St

2 bed · 1 bath

$3,000per month

Orange, CA

1336 E Orange Grove Ave

Studio

$2,000per month

Orange, CA

815 E Sycamore St

2 bed · 1 bath

$3,000per month

Legal Disclosures

Investing with Chasin RE involves a high degree of risk, including the possible complete loss of your investment. In addition to being an illiquid investment with an uncertain liquidity date, these investments may have other risks involving:

- Uncertainties in the real estate development process, which may result in increased costs, delays.
- Uncertain or changing market conditions relating to the future disposition of properties.
- Possible unforeseen costs or liability associated with the properties.
- Competitive pressures on selling price.
- Possible conflicts of interest.
- Possible requests for additional capital to maintain your ownership share.
- Uncertainty regarding future taxes.

The past performance is no guarantee of future results.