Build Backyard Cash Machine
We’ve talked for years about how a backyard ADU can be a revenue generator as a rental unit able to cover its construction cost plus spin-off a profit each month. But more recently ADU owners have taken the concept a step further in an effort to secure financial independence & personal privacy.
Feds want to Monitor your Spending
Biden Admin’s Fiscal Year 2022 Revenue Proposal
Approved as an Assault on Your Privacy
Read the Text
…….”Create comprehensive financial account info reporting regime where Financial institutions would report data on financial accounts in an information return, reporting gross inflows and outflows with a breakdown for physical cash, transactions with a foreign account, and transfers to and from another account with the same owner applying to all business and personal accounts from financial institutions, including bank, loan, and investment accounts having a fair market value of $600. Similar reporting requirements would apply to crypto-asset exchanges……”
Create $ in Your Own Backyard
ADU owner “TaxMe NoMore” built an ADU in her yard at the cost of $160k using a home equity loan on the property’s larger main house. “TaxMe” pays off the loan monthly from revenue received from renting the new ADU.
|Monthly Rental Income (includes property tax)||$1,500|
|Payoff Construction Loan||$ 669|
|Monthly Gross Profit||$ 831|
TaxMe’s Neighbor, “Fixed Income Sal” opted to build a full-featured ADU that he could move into then renting the property’s main house to an expanding neighborhood family needing more space.
|Monthly Rental Income (includes property tax)||$3,000|
|Payoff Construction Loan||$ 850|
|Monthly Goss Profit||$1,550|
Going One Step Further
“TaxMe NoMore” and “Fixed Income Sal” don’t lile the Feds knowing about every penny they get or spend. They have both elected to move to a cash environment giving their tenants a 5% rent discount if they pay in cash which doesn’t end up in any reporting istituion.
With his ADU completed three years ago, “TaxMe” has amassed a cash nest egg of more than $60,000. That’s some “cash” machine!
“Fixed Income Sal” has only said “none of your business”