Wouldn’t it be nice if your home paid for itself? Every month, you throw a substantial sum of money towards your rent or mortgage payment, but what if you could live mortgage-free? With ADU investments, it’s more than possible. Michael Russell used an ADU (accessory dwelling unit) to make an extra $1,400/month off of his pricey California home. Combined with a bit of house hacking, Michael was getting PAID to live in one of the nation’s most expensive states. And he did it all on an average salary!So, how do YOU use ADUs to lower your cost of living and turn your home into a cash-flowing investment? Today, Michael walks us through exactly how he did it, how much it cost, how long it took, and how much money he ended up making.With high interest rates, will the ADU investing strategy still work in today’s market? How hard is it to build an ADU? And what’s the one mistake Michael wishes he hadn’t made before he built his ADU? We’re answering all these questions in this episode and showing you how to slash your mortgage payment, even if you live in a costly housing market!In This Episode We CoverADU investing explained and how much it costs to build an accessory dwelling unitWhy more local and state governments WANT homeowners to build ADUsHow to get paid to live (even in a high-cost-of-living area) with ADUs and house hackingThe one mistake that cost Michael months of time (and rent) that you can’t afford to repeatFinding homes with ADU potential and the investor-friendly agent you NEED to spot these opportunitiesAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupNetwork with Other Investors on The Path to FIRE Through the BiggerPockets ForumsFinance Review Guest OnboardingJoin BiggerPockets for FREEMindy on BiggerPocketsScott on BiggePocketsListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Find an Investor-Friendly Agent in Your AreaFind Investor-Friendly LendersProperty Manager FinderWork with MichaelBiggerPockets Real Estate 356 - 30+ Rentals (in a Pricy Market) Through BRRRR and Section 8 with Joe AsamoahBiggerPockets Real Estate 575 - Killer Cash Flow with This “Tenant-First” Section 8 Rental Strategy w/Joe AsamoahBiggerPockets Money 37 - Paying Off Student Loan Debt with a Median Income and Two Kids in Northern California with Kyle Renke00:00 Intro01:19 Money Snapshot04:17 Home Run House Hack 06:01 Smart Money Moves Early On10:47 Surviving on $36K/Year 12:40 Building the ADU22:12 How Long Did it Take?24:55 ADU Investing with High Rates 33:37 Starting ADU Side Hustles37:40 The Right Type of Agent 45:58 Connect with Michael! 46:59 The Housing Solution?Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-550Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoicesSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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