ADU Build Out in Unincorporated Adams County
Investor couple Chantal and Tyler join our resident ADU expert and agent Stacy Rozansky in this episode to talk about a Denver ADU property they purchased in 2017. This property is located near Regis University just North of Denver in the Chaffee Park neighborhood but on the Adams County side. The property had unique characteristics like a full kitchen in the basement and an old garage/barn structure at the back of the property. Listen to the podcast to find out what advice this investor couple has for Denver buyers looking for ADU properties.

There was upside in improving the interior, adding a bathroom and separate entrance to the basement and repurposing the old barn into an ADU. Unknown to the buyers at the time they purchased in 2017, the property was zoned for ADUs.

The timeline from purchase to completion of improvements took 9 months.

Investor Profile

  • Investor couple – Realtor and General Contractor
  • Long term Buy & Hold
  • Focused on value add properties and short term rentals
Three Learning Options!
  1. Listen to the podcast “#263: ADU Build Out in Unincorporated Adams County” on the Denver Real Estate Investing Podcast
  2. Watch the YouTube video (at the bottom.)
  3. Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.

Deal Quadrant: MLS

Read about the deal quadrant and finding Denver Investment Properties.

Investment Property Details 

  • Type: Single Family Home with Two Unit or ADU zoning
    • 1bed + loft/1 bath with full kitchen also in the basement
  • Location: Chaffee Park (Adams County)
  • List Price: $450,000
  • Purchase Price: $441,000
  • Why we liked it:
    • Two unit zoning
    • Location near downtown
    • Full kitchen in the basement

Property Contract Details 

  • Finding the Property: MLS. This property was still available after the weekend so they had an opportunity to put in an offer below list.
  • Inspection items resulted in 5k seller concessions
ADU Build Out in Unincorporated Adams County near W 56th Ave and Zuni

Property Financing Details

  • Lender: 
  • Loan Type: 3% down, Conventional, 4.75%
  • Appraisal: At Value
  • Seller Concessions: $5000
  • PMI: Loan had option for no PMI
  • Interest Rate Buy Down?: No

ADU Before and After Photos

ADU when purchased
View of ADU when purchased
ADU before
ADU before
ADU under construction
ADU under construction
ADU under construction
finished ADU exterior
Finished ADU exterior
finished ADU interior
Finished ADU interior
ADU kitchen
ADU kitchen
ADU shower
ADU shower

Conclusion

Knowing everything they know now, the buyers would definitely choose to do this deal again. They stress the importance of finding the right property by looking in ADU friendly areas, at lot size, zoning requirements, and short term rental laws.

Good advice for buyers interested in ADUs is to make sure to consider start up costs including water tap and determine if the sewer line can handle the additional load. It’s also important to thoroughly inspect the foundation and ask the seller for drawings of the home.

It’s also a good idea to have your list of contacts to reach out to before buying the property. These include a General Contractor (GC), engineer, the city in which the property is located, and the water district representative.

If you would like to learn more about ADUs in Denver, check out our free Denver Additional Dwelling Units (ADU’s) Course.

You can also find helpful information in our Building an ADU in Denver Basics blog post.

YouTube Video: ADU Build Out in Unincorporated Adams County

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Authors
Stacy Rozansky
Stacy Rozansky is an investor-friendly agent with Envision Advisors with experience in ground-up development and construction of Accessory Dwelling Units in Denver and the metro area.
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