You could be missing out on the chance to earn passive income from your home (and other rentals!) with a “no-brainer” money move. This investing strategy is picking up steam and could become one of the big trends in real estate this year. Today’s guest was one of the early adopters, and it carried him to FIRE by his late thirties!
Welcome back to the BiggerPockets Money podcast! Today, we’re chatting with “That ADU Guy,” Derek Sherrell. Right before the 2008 housing market crash, Derek left his contracting job behind and returned to school to become a firefighter. Little did he know that this career move would provide the time, freedom, and connections to launch a full-blown side hustle alongside his W2 job. Before the age of forty, Derek became financially independent, with the ability to retire early, all thanks to this simple strategy. Since then, he has made it his life’s mission to inspire countless others to do the same!
In this episode, we’re taking a deep dive into accessory dwelling units (ADUs). Tune in to learn why the combination of serial house hacking and some kind of “secret sauce” (in this case, ADUs) is perhaps the easiest path to FIRE. Derek will tell you everything you need to know about buying, building, and renting out ADUs—from financing these units to scaling your business!
Support today’s show sponsor, BAM Capital, your path to generational wealth with premier real estate investment opportunities!
In This Episode We Cover
Accessory dwelling units (ADUs) explained (and how they create passive income)
Why the modified serial house hacking strategy might be the easiest path to FIRE
How to completely replace your W2 income with cash flow from ADUs
How to easily (and affordably) convert a single-family home into a duplex
Why ADU investing could be one of the biggest investing opportunities in 2024
How to get your spouse on board with your real estate investing strategy
And So Much More!
Links from the Show
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Check Out Derek’s Website
Derek on BiggerPockets
00:00 Intro
02:31 Life with FI & Current Portfolio
06:06 Derek’s Money Journey
12:26 Changing Careers & Building Wealth
18:21 Buying the “Lucky” House
28:14 House Hacking with ADUs
37:20 3 ADU Investing Strategies
49:06 Derek’s BIG Mission
55:58 Connect with Derek!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-547
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