$65K ADU Garage Conversion Tour + BIG Cost-Saving Tips

An ADU garage conversion can transform your extra space into a cash-flowing rental property in your own front or backyard. ADUs (accessory dwelling units) like this have become the norm in 2023 as home prices stay sky-high and permitting pains run rampant. The best part about this strategy? You can do it for FAR less than it would cost to buy another rental property, allowing you to take home more passive income without paying off a half-a-million-dollar mortgage.

If you want to know the right way to do a garage conversion ADU, Derek Sherrell, AKA “That ADU Guy,” is your man. He’s been building ADUs longer than almost anyone else and has the cost-saving tips and space-enhancing design you need to turn where you park your cars into a real rental property. We’ll tour Derek’s one-bedroom, one-bathroom, 500+ sq ft ADU and hear exactly how he built, designed, and budgeted for it.

What extra space could you turn into another passive income stream? Would you try your hand at a garage conversion? Let us know in the comments below!

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Watch Derek’s Full Interview on the BiggerPockets Podcast:
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The Beginner’s Guide to ADU Investing (Accessory Dwelling Units):
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What Exactly Is an Accessory Dwelling Unit?
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10 Things to Consider When Investing in Accessory Dwelling Units:
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00:00 Saving Space in Your ADU
02:03 Cutting Down on Costs
03:25 Kitchen and Living Room
05:37 Bathroom
06:13 Bedroom
06:55 The Final Cost

[vermonburt]

Great content..definitely more ADU CONTENT👌🏿👍🏿

[galdamez]

Great video, like always. When you're charging for utility service, what software, systems do you use? If you could create a video, that would be great!

[MillennialMike]

Derek is such a stud! Even if he is a firefighter

[RoxyRentalsSO]

That's impressive. My contractor was going to charge me $170k to build a very similar design but 2 bd

[kmilesSC]

Hell Derek. Do you have a set of plans you sell for that 2 car garage with adu?

[ericdeguzman]

Hey Derek- love your videos and all these great tips! Can you comment on your experience with tankless water heaters from a property management standpoint? I love the space savings but am concerned with the additional maintenance required for those vs tankless heaters. Have you had any issues with your tenants using them? Thanks and keep up the great work and content!

[adamcooper]

Could really use help on the east coast. Baltimore, MD specifically. Builders are quoting me 175-200k! Someone please send a lifeline 😅!

[LV_TK]

Hey Derek what brand 24" range is that and where do you source this and most of your appliances from? Actually need 2 of these and as you know 24" are harder to find and more expensive... Awesome content !!!

[royguti]

How about the sewer aspect? I imagine you tie in to the main sewer line coming from the main house?

[literallyonlyfanz]

Bro looks like Brandon with a trimmed beard 😂🔥

[rosejones]

Very helpful. However, I am not a do it your-selfer . I would have to give something like this a to the contractor.

[jamescombs]

A normal size fridge is so much better than a tiny one. Other than that this is beautiful!

[YanaSoul]

Hey Derek! Your videos inspire me to someday build my dream adu :) did you build this entire building for 65000 or convert an existing garage and add a floor above? I’m trying to estimate the cost of adding a second floor above my attached single story garage 😊

[oaneb]

What private electric meter are you using on this ADU? Where can I get one from?

[Kiim_Bishop]

I didn’t even know you could cut your own granite!!! 🤯 That’s wild

[codyryan]

Is there a link to a floor plan or layout for this ADU?

[JillWrightNailTechEvent]

Really good advice, really terrible music. Please, no more distracting background music to annoy the viewers who can’t stand that type of music & want to hear you speak. ✌️

[rajdeepjana]

I'm from i learn from these videos?As American housing/real estate is different from Indian Pls help

[bubblesartgallery]

For god sakes stop the background music!!

[frank]

I find it really hard to believe these numbers unless the guy is milling the lumber himself. Ain't no way he built a garage, adu and installed asphalt for $65, 000. There is more to this story.