Poppy’s New Single Family

Turnkey Project Cost Today = $836,301
Size = 1,478 sf

In Berkeley’s Elmwood neighborhood, one couple knew exactly how they wanted to spend their retirement. But they weren’t there yet. First, they needed to send their kids to college.

Knowing they needed an income generator, they approached New Avenue with their ideas: They wanted a beautiful, livable ADU that would bring in rental income. Later, when they were ready to retire, it would serve as their home.

Most renters prefer not to have someone above or below them, so a backyard cottage like this is more valuable than an apartment. (This one gets a much higher rent than the apartments in a two-floor duplex on the same property.)

The accessory dwelling includes two bedrooms, two bathrooms, a living area, a kitchen, and a dining room. Upstairs is a storage loft that’s open to the ground floor. The floor plan, storage space, and privacy all appeal to families, couples, young professionals, and university students, so the owners had no trouble renting it out.

The homeowners rented their new ADU for $6500 a month to the owners of a European startup. The income paid for Stanford. Imagine not worrying about tuition.

When the homeowners are ready to retire, the ADU will be the ideal custom home to live in, leaving the main home available for family or to rent out.