There’s a hidden <a href="https://www.biggerpockets.com/blog/how-to-earn-passive-income-in-2024?utm_source=podcast&utm_medium=description&utm_campaign=none">passive income</a> stream in your basement, backyard, or garage, and only one investing strategy can unlock it. More and more homeowners and landlords are using this strategy to pay their mortgages, pad their pockets with cash flow, and increase their home values significantly. Of course, we’re talking about <a href="https://www.biggerpockets.com/blog/accessory-dwelling-units-explained?utm_source=podcast&utm_medium=description&utm_campaign=none">ADUs (accessory dwelling units)</a>, the rental properties that states are begging you to build, and you can do so right now with the home you already own.To help you affordably (and profitably) build your first ADU, we brought on Derek Sherrell, AKA <a href="https://thataduguy.com/">That ADU Guy</a>, to give you the beginner steps to your first attached (or detached) investment. We’re walking through which properties have the best ADU opportunity, how much an ADU costs to build or convert, how much an ADU will make, how to fund and finance your first ADU, and how Derek builds an ADU from scratch in just 90 days!Derek often makes an <a href="https://www.biggerpockets.com/blog/how-to-generate-infinite-returns-in-real-estate?utm_source=podcast&utm_medium=description&utm_campaign=none">infinite return</a> on his ADU investments, and he’s teaching you how to do the same! If you’re in an expensive state like California, Oregon, or Washington, this strategy is even more effective as you can collect more rent AND do so without local regulations slowing down your ADU progress!In This Episode We Cover:How much an ADU costs to build, and the wild returns Derek is making in 2025The most affordable ADU conversion that will boost your property’s <a href="https://www.biggerpockets.com/blog/rental-property-cash-flow-analysis?utm_source=podcast&utm_medium=description&utm_campaign=none">cash flow</a>Three crucial beginner tips when designing and building your first ADUHow to finance your ADU conversion/build and why Derek loves <a href="https://www.biggerpockets.com/glossary/heloc?utm_source=podcast&utm_medium=description&utm_campaign=none">HELOC</a>sBest states for building ADUs and who to call BEFORE you decide to buildAnd So Much More!Links from the Show<a href="https://www.biggerpockets.com/signup?utm_source=owned_media">Join BiggerPockets for FREE</a><a href="https://www.BiggerPockets.com/Podcastfeedback">Let Us Know What You Thought of the Show!</a><a href="https://www.biggerpockets.com/forums?utm_source=owned_media">Ask Your Question on the BiggerPockets Forums</a><a href="https://www.youtube.com/@biggerpockets">BiggerPockets YouTube</a><a href="https://airtable.com/appnZ2AGUknfciOzu/pagvbFaEPNprDBVKi/form">Apply to Be a BiggerPockets Podcast Guest!</a><a href="https://eqtytrst.co/bp">Maximize Your Real Estate Investing with a Self-Directed IRA from Equity Trust</a><a href="https://get.biggerpockets.com/conference/">Save $100 on Real Estate’s Biggest Event of the Year, BPCon2025</a><a href="https://store.biggerpockets.com/products/start-with-strategy?utm_source=youtube&utm_medium=description&utm_campaign=none">Grab Dave’s Book, “Start with Strategy”</a><a href="https://www.biggerpockets.com/email-subscribe?utm_source=youtube&utm_medium=description&utm_campaign=none">Sign Up for the BiggerPockets Real Estate Newsletter</a><a href="http://biggerpockets.com/findlenders">Find Investor-Friendly Lenders</a><a href="https://www.biggerpockets.com/blog/accessory-dwelling-unit-cash-flow?utm_source=youtube&utm_medium=description&utm_campaign=none">Is Building an Accessory Dwelling Unit (ADU) a Worthwhile Investment</a><a href="https://www.biggerpockets.com/users/dereks301?utm_source=youtube&utm_medium=description&utm_campaign=none">Derek's BiggerPockets Profile</a><a href="https://thataduguy.com/">Derek's Website</a><a href="https://www.biggerpockets.com/users/davem27?utm_source=youtube&utm_medium=description&utm_campaign=none">Connect with Dave</a>Check out more resources from this show on <a href="https://www.biggerpockets.com/">BiggerPockets.com</a> and <a href="https://www.biggerpockets.com/blog/real-estate-1097">https://www.biggerpockets.com/blog/real-estate-1097</a>Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email <a href="mailto:advertise@biggerpockets.com">advertise@biggerpockets.com</a>. Learn more about your ad choices. Visit <a href="https://megaphone.fm/adchoices">megaphone.fm/adchoices</a>

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