ADU 101

The official name for a backyard home is an accessory dwelling unit, or
ADU. School yourself in everything ADU and get resources that will help
you make informed decisions about who you work with.

frequently asked questions

A residential unit that can be added to a lot with a single or multifamily home. While they are
officially called accessory dwelling units or ADUs, we prefer to call them backyard homes.

Garagify works in the Greater Los Angeles area.

Building a backyard home is a great way to increase the value of your property and generate passive recurring income to:

  • Payoff debt – Use the extra money to knock out your balances.
  • Retire comfortably – Enjoy the rest of your life on your own terms.
  • Diversify your portfolio – Achieve your financial goals by investing in your future.
  • Support your family – Secure your family’s financial future.

Everyone’s situation is different. So, our lending partners align your specific needs with the
backyard home financing option that is best for you.

  • Shared Appreciation Loan
  • Savings
  • Cash out Refinance
  • Home Equity Loan
  • Home Equity Line of Credit
  • Construction Loan
  • Personal Loan

Yes, but not as much as you may be thinking. The City determines the costs associated with building the backyard home (note this will most likely differ from our bid).  This information is forwarded to the tax assessor who then increases the value of your property based on the cost information received from the City. For example, if the City indicates that the value of the construction is $100,000, the tax assessor will add that to your original property value.

Let’s say you purchased your home for $750,000, your property tax will only increase based on the City’s value of the cost of the improvements, $100,000. At 1.1% of this cost,  your property taxes will only increase a few hundred dollars more per year, which is way less than the rental income you’ll receive.

Free Resources


Want peace of mind? Ask the right questions to help ensure you’re going to hire the right company for your project.

Consider This Before Building

Stay abreast of new developments and laws about backyard homes by
reading our blog.

Backyard home, granny flat, in-law suite: what’s the difference?

Though the names are similar,  a granny flat and in-law suite are two very different types of spaces. If you’re considering one of these, here are a few important things to think about…

Backyard mansion taste on a granny flat budget

While your heart is designing a dreamscape getaway of a granny flat, your wallet might have other things in mind.

When are Backyard Homes Subject to Local Limits?

California finally made it easier for homeowners to build a backyard home (aka ADU).
Here are a few reasons why building a backyard home might be something to think about.

Adding Backyard Homes to Multifamily Properties


Where do I even begin?

At Garagify, we start with outcomes.

We believe a homeowner should know three key things before launching into a backyard home project:

  • Estimated Total Cost
  • Potential Rental Income
  • Break Even Point

This type of detailed research and forecasting can a take homeowner upwards of 10 hours to compile. Let us do the hard work for you and get your project off on the right foot by ordering a Backyard Home Investment Report.

The report is an invaluable resource, as it will show you how quickly your backyard home will pay itself off and begin earning profit. Even if you choose to build with someone else, you’ll still benefit from learning about how your property is zoned, average rents in your area, and estimated costs for different build options that are legal on your property. If you do build with us, you’ll get a credit toward the full cost of the project.

Backyard Home Investment Report



  • Avg rents in your area
  • Legal ADU options for your property with estimated costs
  • FREE On Site Consultation