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Investing in Accessory Dwelling Units (ADUs) offers significant opportunities for increasing cash flow in Southern California real estate markets. By purchasing a property with an existing structure and adding one or more ADUs, investors can significantly amplify their rental income, achieving returns between 10% to 14%. This strategy is particularly effective in dense areas like Los Angeles where traditional single-family homes limit income potential. For example, purchasing a corner lot and adding multiple units can transform a property from a moderate cash-flow asset to a robust income generator.