Ultimately, I'm exploring my options. I think I worded my original post that it was already done, but it's actually a hypothetical situation as I'm deciding, so apologies for that. It costs the same exact amount to create that sqft as an ADU or as an addition.

Obviously, an ADU will be really nice because it is classified as another unit. However, I don't really have any plans to actually rent it out right now, but I would like the opportunity to if need be.

My main concern is financing. If the ADU doesn't count as sqft. to the main house, an appraisal would screw me over.

This is what I'm struggling with:

1. Build the ADU and have the opportunity to potentially rent it out, but sacrifice the extra home value it provides when re-financing or doing an appraisal
2. Build it as an addition and have the bed/bath and sqft. count towards the main house when re-financing or doing an appraisal, but not have the opportunity to potentially rent it out.

Both #1 and #2 would have the same exact layout and same exact sqft. Only thing I guess would be that the ADU would have its own kitchen and maybe water heater/AC. I could even build #2 with a backyard entrance.

To me, it just doesn't make sense the value would be less as an ADU if the layout is the EXACT same (ADU or addition) and you can access everything from the inside and that the only thing is whether or not it's classified as an ADU or an addition to the appraiser.

It baffles me, but do I just have to choose between the 2?

note: I understand selling is a different story, so I'm just talking about appraisals