Poppy’s New Single Family

Build Cost 2025 Starting At: $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 backyard home 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.)

This home includes two bedrooms, two bathrooms, a living area, a kitchen, a dining room and a giant loft that could be two additional bedrooms. Instead of adding the 3rd and 4th bedroom upstairs is a playroom and office 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 when we finished this project in 2012! The income paid for a Stanford degree! 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.