I Thought I Wanted a Single-Family Home. Turns Out, I Missed the Rental Income

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I’ve always had benchmarks for knowing when I’ve “made it” in life: a car with power windows and locks, a refrigerator with a water dispenser and owning a single-family home. The last one stems from the fact that my wife and I always owned two-family homes. We lived in one unit and rented out the other for over a decade before we finally had the means to move into a single-family home.

But the funny thing was, when we finally got there, something was missing. Our single-family home didn’t feel as rewarding as I thought it would. Ahead, I share why this long-sought-after dream house didn’t quite feel like one and how a new Massachusetts law allowed us to add the missing piece to our family’s forever home.

Finding Financial Freedom in a Two-Family Home

After 10 years of renting, my wife and I wanted to buy a home. We decided on a two-family property because we were nervous about taking on too much financially. A single-family home seemed like a luxury that was out of reach, but the rental income from a two-family home made homeownership seem feasible and financially safe. Collecting that first rent check was an amazing feeling, and it cut our mortgage payment in half. We were hooked. Being landlords wasn’t always stress-free, but regular rental income gave us so much financial freedom.

Chasing the Single-Family Dream

Seven years later, we moved into another two-family home that better suited our growing family and kept the first one, too. We continued to work and save for another five years. As we approached 40, buying a single-family home felt like the next logical step. It was the ultimate end goal, right? So we bought a single-family fixer-upper in a nice neighborhood and started making repairs. Our kids settled into a new school district, and we made friends with the neighbors.

At first, it all felt great, but living in a single-family home wasn’t everything we’d hoped it would be. Mostly, we found we really missed the rental income we were used to in our two-family homes. It felt foolish to have a house that only took money out of our bank account without putting any back in. We didn’t want to move, and soaring home prices made buying another property out of the question. To find ways to generate income from our property, I tried renting out our in-ground pool, second garage, and backyard to dog owners. None of those ideas panned out, leaving us without a way to recreate the two-family experience we missed.

A New Law, A New Opportunity

Then, in August 2024, Massachusetts enacted a new law to encourage homeowners to build accessory dwelling units (ADUs), or in-law apartments, to ease the state’s housing shortage. These secondary, self-contained living spaces, complete with kitchens and bathrooms, can house extended family members or paying tenants.

My wife and I immediately knew this could be the solution we’d been looking for. Instead of moving to a two-family home, we could add a small apartment to our existing home. We considered our options and decided that converting a portion of our house into a one-bedroom apartment was the most cost-effective.

We researched town and state ordinances and building codes, then applied for a building permit and submitted plans for the proposed project. Because we weren’t changing the footprint of our home, the process went very smoothly. We started the work in August and had everything completed and inspected by December 2024. We received a certificate of occupancy from the town, and our first tenant moved in on January 1, 2025.

Nearly two years later, we have absolutely no regrets about our ADU conversion project. The rental income has been a fantastic addition to our monthly budget, and we’ve had amazing tenants from the start. It has been the missing piece of our dream home and is making a more secure financial future possible for our family.

Tips for Adding an ADU: Is It Worth It?

If you’re considering adding an ADU to your home or property, here are a few things to keep in mind:

Check state and local laws: Start by researching your town or city’s ordinances and regulations to determine whether adding an ADU is allowed.
Assess costs versus income: Our project cost around $55,000, and we currently collect $1,725 each month, or $20,700 per year, in rent. At that rate, it will take us about two and a half years to recoup the project’s cost. For us, it was well worth the investment.
Consult an electrician early: I was surprised by the need to upgrade our electrical panel. If you’re considering a similar project, consult an electrician early in the process to assess your current electrical capacity and determine what upgrades might be necessary.
Plan carefully: Consider your privacy and make it a priority when planning your ADU. Do you want to see your tenant every time you walk to your car or relax in your yard? Think about how your daily life and use of your property might change once the ADU is occupied.
Make sure you’re ready to be a landlord: My wife and I had been landlords for 15 years when we began this project. We knew what we were getting into and how to make it a positive experience. There are plenty of stories about nightmare tenants and nasty evictions, and trust me, you don’t want to end up in a situation like that, especially in your own home.

A Better Investment

While we had been happy in a two-family home, we mistakenly thought we could do better. But after moving into what was supposed to be our perfect, single-family home, we realized we had made a mistake. Our “dream” house began to feel like a financial burden that only sucked up money and never gave anything back. Staying put and adding a small apartment has given us so much more breathing room and transformed our forever home from a burden into a boon.

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