Why Adu

The Lucrative ADU Opportunity

You might qualify to purchase an ADU with no money out of pocket through a Home Equity Line of Credit (HELOC) from your preferred banking institution.

Even if your debt to income ratio is maxed, the OHANA KIT could qualify you for a loan. Many lenders will approve an “OK Loan” (specifically for Ohana Kits) based on the future income potential of your new ADU. This has never before been possible either for home additions or “ohana units” (otherwise known as mother-in-law suites).

An ADU can immediately increase the value of your property beyond the unit’s cost; in other words, with financing, the bank will essentially pay for your new ADU.

By taking advantage of these incentives, you can earn permanent and regular passive income from renting your OHANA KIT ADU.

Alternatively, you can maximize the income potential of your property by moving into your newOHANA KIT ADU and renting out your primary residence.

While Hawaii ADU does not offer investment or tax advice, it’s obvious that installing an OHANA KIT ADU offers homeowners an unprecedented investment opportunity that can both improve your quality of life today and assure your future retirement security.





Homeowner Incentives

Provides Immediate rental income
    • Fast installation: 120 days from contract agreement to full installation*.
    • Move in ready: List your OHANA KIT ADU as a rental the day it’s installed.
    • Low out-of-pocket costs can be recouped in first couple months with positive rental income versus monthly loan payment.
    • Rental income helps homeowners afford their mortgages on their primary residences, pay for repairs, cover expenses such as maintenance and taxes.
    • Rental income supports elders on fixed incomes, helping them age in place.

* All Permits must be secured prior to ADU installation, and whereas Honolulu DPP has committed to quick permit turn-around time for ADUs, we cannot guarantee any installation time frame if the permit process causes delay.

Adds instant value to your property
  • More bedrooms, bathrooms and living space
  • Increased rental income potential adds to the overall property value
  • Borrow at ultra-low interest rates and write the loan interest off on taxable income, simultaneously increasing passive income and property resale value.
Provides immediate rental income from your primary home
  • Downsize into your ADU for simpler living.
  • Once your primary home is rented, repairs to it are tax-deductable against rental income.
  • Earn higher rental income from your primary home by moving into your ADU.
  • Live in a brand-new, customized ADU.
Creates added living space for your family
  • Multiple generations can share one property.
  • Adult children, aging parents, multi-family space.
  • Living space for on-property caregivers.
Real Estate Decoupling
  • OHANA KIT’s ADUs can be moved to other locations.
  • Sell your OHANA KIT ADU if you no longer need it.

Community Incentives

Affordable Housing Solution
  • Add affordable housing to the underserved rental market for low- to medium-income population.
  • The inventory of small units available to singles and small families will grow, freeing up larger units for bigger households.
  • ADUs help prevent urban sprawl while maintaining a neighborhood’s character.
  • Because of their size and construction, ADUs use less energy.
  • Solar PV and solar hot water can easily be connected to most ADUs to maximize efficiency and resource conservation.
Local Economy
  • The ADU market creates work for local builders and contractors, increases sales of construction materials, and provides ongoing property tax revenue for local municipalities.
  • No government subsidies will be required as property owners increasingly respond to the demand for rentals and take advantage of the opportunity for greater income.


What are ADUs?

Accessory Dwelling Units (ADUs) are small, separate living areas equipped with their own kitchens, bathrooms and sleeping spaces. They can be used as a residence on single-family lots or as comfortable additions to existing homes.

ADUs Create Affordable Housing

The State of Hawaii encourages the use of ADUs by waiving a majority of the ADU fees and permits because they represent a viable solution to Hawaii’s affordable housing crisis.