Why Is It So Hard to Make Money on California Investment Properties Now?

In places like Orange County, buying an investment property now takes 50–60% down just to break even. Investors are putting in hundreds of thousands of dollars and only earning a few hundred a month. The homes still go up in value, but that doesn’t help your cashflow today. It’s time to find a smarter way to make real estate in California actually pay you each month — not just someday down the road.

What Is the Best Type of ADU to Build for Investment Properties?

The best kind of ADU (Accessory Dwelling Unit) to build for investing is a detached ADU. In Orange County, many cities let you build a detached ADU up to 1,200 square feet, depending on local rules.

A detached ADU is a small home that stands on its own in the backyard. It’s the best choice for most investors because:

  • You can charge more rent. Tenants like having their own private space.

  • It raises your property value. A second, separate unit adds more worth to your home.

  • Tenants stay longer. People who rent a detached ADU often stay because it feels like a real home.

  • It fits better on corner lots. Corner lots give you more room and more ways to place the ADU for privacy and easy access.

How an ADU Realtor can help Investors Build Smarter Portfolios?

Working with an ADU Realtor gives you an advantage that most investors don’t have. Dylan Serna helps experienced investors identify and find ADU potential properties.

Here’s how Dylan helps his clients:

Here are some of what Dylan the ADU Realtor provides:

  • ADU Consulation: Go over goals with ADU, establish all in budget and how much cash flow you should expect per month

  • Main Home Makeover Without Lifting a Finger System: Takes the stress out of organizing contractors so your home is rent-ready and cash-flowing by the time your first mortgage payment hits. 

  • The Underwrite-It-First Profit Plan : We underwrite the property you’re interested in before you offer— analyzing the mortgage payment, ADU and main home rents, to ensure it’s a solid, profitable deal. 

  • Step-by-step support from property search to ADU completion, ensuring each project stays profitable.

What are the Steps to take if want to buy an investment property to build an ADU?

We call this Process The Serna 5:

Step 1: The Vision Session


Start with a one-on-one consultation with Dylan Serna, ADU Realtor in Orange County. Together, you’ll clarify your investment goals, timeline, and budget, and decide whether to build an ADU on a property you own or buy a new ADU-ready property.

Step 2: The Treasure Hunt

Tour a handpicked list of ADU-ready homes based on your goals. Walk through possible ADU layouts and narrow down the choices that best fit your investment needs. Once you find the right property, we start offering. Once our offer is accepted, we go into escrow.

Step 3: The Escrow Zone

After getting an offer accepted. We are in escrow! It’s still the usual process of inspection, appraisal, and due diligence - just an added step which is: Dylan will connect you with a trusted ADU specialist contractor to perform a feasibility report with his ADU contractor. This report is like a checklist to see help ensure that your ADU is possible and the best way to do it.

Step 4: Signed, Sealed, Start Renovating

Close on the property and renovate the main home so it’s rent-ready. You want to start cash flowing while the ADU is being built.

Step 5: “Build & Rent”

Once plans have been submitted to the city and approved, you can start having contractors build the ADU. After the ADU is finished, the ADU passes the final city inspection and receives the Certificate of Occupancy, you’re ready to rent it out and enjoy the income.

Ready to start Step 1- The Vision Session?

After Filling out your information, Dylan will contact you with a time for your 30 minute ADU Vision Session - Completely free and over Google Meets