When our client, an experienced investor, decided to relocate from Austin to Colorado Springs, she wanted a property that could support an ADU as part of her long-term real estate investment strategy. She had seen firsthand how ADUs were successfully integrated into properties in Austin and was eager to bring that same concept to Colorado Springs' growing market.
While she initially explored Colorado Springs based on a personal connection — her partner had previously lived in the area — her investment mindset quickly took over. She found a property with great ADU potential, but before committing, she reached out to StreamHome for a remote feasibility consultation.
After confirming that the property was an ideal candidate for an ADU, she flew in to see it in person and was under contract within 48 hours.
Full Primary Home Remodel First
Before even breaking ground on the ADU, we completed a full remodel of the primary home, ensuring that it was modernized, structurally sound, and ready for rental income potential.
This included:
- Finishing an unfinished basement that had a severely damaged concrete slab, which required full removal and replacement.
- Structural reinforcements, as the home — built in 1923 — was on notoriously volatile soil found throughout Westside Colorado Springs.
- Updated interior finishes, plumbing, and electrical, modernizing the home while preserving its historic character.
By tackling these renovations first, we increased the property's value before even starting on the ADU.
Architectural Harmony: Matching the Mission Style
One of the client's key concerns was ensuring architectural harmony between the primary home and the ADU. Many ADUs look like separate, modern structures that stand apart from the original home. Instead, she wanted a design that would blend seamlessly with the property's existing Spanish Mission style while still providing modern comfort and efficiency.
We accomplished this by:
- Matching the stucco exterior of the ADU to the primary dwelling and perimeter fencing.
- Using the same tile roof as the main house, ensuring a cohesive, classic aesthetic.
- Incorporating wooden vigas, traditional architectural elements that further emphasized the authenticity of the design.
Site Challenges on a Historic Westside Lot
As with many older homes in Colorado Springs, the lot presented unique challenges due to its age and terrain. Key issues included:
- Unstable soil conditions, which required careful engineering to ensure a stable foundation.
- Tight lot constraints, necessitating strategic placement to maximize space while preserving outdoor areas.
- Utility connections, which had to be carefully integrated with the primary home's systems without disrupting daily use.
ADU Features & Specifications
The 900 sq. ft. two-story ADU was designed with flexibility in mind, serving as a mid-term rental for traveling professionals while maintaining the potential for long-term tenants in the future.
Key Features Include:
- Spacious living area with natural light, maximizing comfort for tenants.
- A full kitchen with high-end finishes, ensuring a premium rental experience.
- A well-appointed bedroom and bath, designed for privacy and relaxation.
- An outdoor patio space that blends with the main home's landscaping, creating a welcoming, functional environment.
Investment Results
Our proprietary construction and business management system played a key role in keeping the project on track. By utilizing real-time scheduling, workflow tracking, and clear communication with the client, we avoided unnecessary delays and ensured a smooth construction process.
Since its completion, the ADU has been fully booked as a mid-term rental, attracting traveling nurses, remote workers, and corporate professionals who need a furnished home for three months or longer.
Key investment takeaways:
- The ADU generates consistent, high-quality rental income, while maintaining the option for long-term leasing in the future.
- The architectural continuity enhances the property's overall value, making it attractive to future buyers.
- The primary home renovation + ADU combination turned what was originally a personal home purchase into a high-performing real estate asset.
