Economic Benefits of your Accessory Dwelling
An accessory dwelling, such as a garage conversion, in-law suite, guesthouse, or backyard cottage, can transform your livelihood in a major way. It welcome opportunities for homeowners wanting to create a multigenerational home with their parents or children, to generate secondary income from renting it out or hosting a bed and breakfast, or to reinvent their space for work and play.
In any case, an accessory dwelling project is a big investment. This calculator gives you a simple outlook of the economic benefits that it could bring to your home. While there are many variables and costs depending on location and use case, we’ve simplified the parameters to cover the essentials.
Equity is calculated by subtracting your remaining mortgage balance from the market value of your accessory dwelling. Lifetime Income is calculated by subtracting cumulative maintenance costs, property taxes, and mortgage payments from your cumulative rent income.