Are you retiring or have retired from Lockheed Martin?  Do you have an extra space at your home that you have already or are thinking about converting to an apartment? If so, then this blog is for you.

Today, we are talking about Accessory Dwelling Units or ADUs. What is an ADU? An ADU is a secondary housing unit on a single-family residential lot, most commonly known as a mother-in-law suite, garage apartment or even a basement apartment. These are separate living units that are most often rented out for a second stream of income or used as housing for a family member.  ADUs cannot be bought or sold separately from the main house and the owner of the main house is also the owner of the ADU.

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There can be many benefits to having an ADU on your property, whether it’s attached to your home or a separate structure.

  1. An elderly parent could live in a small unit and avoid having to move to an assisted living facility.
  2. A young adult trying to get their life started and saving up for their own place could find this more affordable than a traditional apartment.
  3. A mature couple could find the additional stream of income helpful in supplementing their retirement income needs.
  4. A young couple could find the additional income stream helpful in paying for the mortgage.
  5. You can put to work unused space.

Of course, with benefits comes potential disadvantages, such as:

  1. Property taxes will increase slightly, but you can check with your tax assessor to know what the increase will be prior to adding an ADU.
  2. Liability exposure increases, but that can be combatted by setting up an LLC which owns the rental business.
  3. Additional unknown people on your property, but that can be mitigated by setting up rules within your rental agreement.
  4. Increased cost of utilities and maintenance, but rent can be set to cover the cost of utilities and the tenant can help with routine maintenance if the rental agreement is written with it included.

So, if you’ve said so long to Lockheed Martin and are wanting to do something with your extra space or build a space, consider using an ADU, but be sure to check your zoning laws first.  An ADU can be a great item to use in adding equity to your home and to building your Net Worth.  For great ideas like this and many more, come see of our Lockheed Martin specialists who can review your situation and help you continue to plan for retirement.  Give us a call today at 817-210-3444 or click HERE to book a complimentary consultation!

For more tips like these, click here to sign up for our weekly email blog newsletter. If you would like to get better educated on Lockheed retirement strategies, click here to download our Free Report titled Retire with Confidence: The Top 4 Things You Can Do Now to Maximize your Lockheed Retirement. And, if you want to have face time with a Lockheed Retirement Specialist², you can click here to schedule an appointmentclick here to sign up for our Lockheed Retirement Workshop or click here to just give us a call (817) 210-3444.

Be sure and check back next week for more incredibly valuable information. Cheers!

Disclosures*

Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.