Find a Reliable ADU Contractor for Garage Conversion Design in Central Oregon and Maximize Rental Income

Thinking about adding an ADU to your property in Bend or Awbrey Butte? The first question most folks ask is: What does the ADU contractor actually do—and how do I know I’ve picked the right one?

Here’s the straight answer.

A great ADU contractor doesn’t just build small homes. They quarterback the whole process—from pulling your first permit to the final walk-through. And trust me, in places like Deschutes County and the city of Bend, where zoning and permitting can get a little sticky, picking the right partner is everything.

What Counts as an ADU in Oregon

An ADU (Accessory Dwelling Unit) is a standalone or attached residential unit located on the same lot as your main home. They come in different flavors:

• Detached backyard cottage
• Converted garage
• Basement apartment
• Attached guest suite

In short, if someone can live in it full-time—kitchen, bath, sleeping area—it could be an ADU.

Here’s what’s great in Central Oregon: cities like Bend and Redmond are actively encouraging ADUs to combat the housing crunch. Recent laws have made it easier—and faster—to get your project approved.

A few things to know:

• Oregon’s state laws require municipalities to allow ADUs in most residential zones.
• Cities like Bend have dropped owner-occupancy and off-street parking rules in many cases.
• You’re often allowed one ADU per residential lot, and many newer ordinances are relaxing that, especially within city development zones.

The big takeaway? If your lot meets basic requirements, chances are you’re allowed to build.

Why a Local ADU Contractor Is Your Secret Advantage

Plenty of companies claim they can “do ADUs.” But navigating real Bend zoning laws and building codes is not something you learn from a YouTube video.

Here’s what a legit ADU contractor (especially a design-build team) handles for you:

• Initial assessment of your property: Is your lot eligible? Can it handle utility hookups? What’s the best layout?
• Complete plan set and design guidance based on your goals—rental income, downsizing, family use, etc.
• Permitting through the city of Bend or Deschutes County—without delays
• Managing every subcontractor, scheduling, inspections, and city sign-offs
• Delivery of a code-compliant, rental-ready unit that meets all state safety and livability requirements

I’ve seen neighbors go it alone, thinking they’d save money. Two years and three permit denials later, they hadn’t broken ground. Meanwhile, we finished an ADU in the same neighborhood in about eight months—with renters moved in the same week.

So yeah—hire someone who knows this region inside and out.

Your ADU on a Timeline: How It All Unfolds

From the first consultation to completion, most ADUs take around 6 to 12 months. Yes, that includes permitting. Yes, that includes construction. Yes, that’s realistic—if your contractor isn’t overpromising.

Here’s how a typical ADU project flows:

1. Feasibility & Design: 4–6 weeks
2. City Permitting: 2–4 months (pro tip: get a contractor who knows the right desk to call)
3. Construction: 4–6 months, weather depending

Ballpark pricing?

• Expect between $150,000 and $300,000 depending on finish level, size, and whether it’s new or converted.
• Garage conversions are usually on the lower end.
• Detached units with custom design, full kitchens, and premium finishes? You’re pushing toward the upper end.

Trends You Should Know Before You Build

Here’s what we’re seeing right now:

• In Bend and NW Crossing, ADU permit applications are up 20% year-over-year
• Rules are shifting to allow for higher density—think duplexes with attached or detached ADUs on the same lot
• Awbrey Butte homeowners are warming up to the idea of converting long-empty garages into long-term rentals (or guest cottages for family)

In other words: the tide is coming in. And the early builders are reaping the returns.

Quick Summary:

• Don’t take on an ADU alone—hire someone who handles both design and permitting
• Garage conversions = faster, cheaper way to start making rental income
• Oregon laws are now ADU-friendly. Bend and Deschutes County are building momentum

Turn That Garage Into Cash: The Easiest Way to Build an ADU in Bend

So you want an ADU in Awbrey Butte—but you’re not psyched about pouring a new foundation or laying utility lines. Here’s a move I’ve personally seen pay off over and over: go for a garage conversion.

Let me give you the inside scoop.

Why Garage Conversions Just Make Sense

Most people aren’t even using their garage for their car. It’s a catchall for camping gear, old furniture, and bikes with flat tires.

Instead of letting all that square footage go to waste, you can turn it into a long-term rental, a guest suite, or a place for extended family to stay. And it’s faster and cheaper than a scratch-built unit.

Here’s why it works:

• You can save on foundation work (sometimes)
• Exterior walls and roof are often already in place, cutting construction time in half
• It keeps your lawn and backyard untouched
• Less red tape on permitting vs. detached structures

Plus, many garages in Central Oregon already have access to electrical and sewer lines nearby, which makes utility upgrades much easier (and cheaper).

Personal tip from experience: A few years ago, we converted a two-car garage in Redmond into a 480-square-foot ADU for around $130K all-in. The owner now rents it out full-time for $1,600/month. They basically covered their mortgage payment with a former junk-storage space.

What’s NOT So Simple About Garage Conversions

Of course, not every garage can magically become a cozy, rentable apartment.

Here’s what may come up:

• Foundation might not meet code—you may need to underpin or replace it
• Insulation, seismic retrofitting, fire safety... don’t skip on this stuff
• Installing HVAC can be tricky depending on access points and existing ductwork
• Natural light is usually limited, so you’ll need strategic planning around windows, skylights, or solar tubes

Also, just because it’s a garage doesn’t mean you get to skip permits. You’ll still need to go through Deschutes County or the City of Bend, depending on your address.

Some key details they’ll look for:

• Setbacks and lot coverage
• Off-street parking (some zones still require it)
• Whether the structure is attached or freestanding
• Maximum unit size allowed (up to 800 sq. ft. in many areas)

Want a quick shortcut? Design-build firms like ours take care of all these steps at once. We assess your garage, figure out what it’ll take, work up a permitted plan, and execute the build under one roof.

Quick Summary:

• Garage conversions are the fastest way to get a functional ADU
• You may save big—but only if the structure is in good shape
• You still need permits, inspections, and compliance checks

Before You Build for Income, Know This

So now you’re probably asking the most important question of all: Is building an ADU—even a converted garage—actually worth it in Central Oregon?

Let’s look honestly at the numbers, the risks, and the potential.

(And we’ll dive into that, starting with rental income and financing, next…)

The Math That Matters: Will Your ADU Pay You Back?

Before swinging a hammer or filing a permit, let’s answer the golden question: Will an ADU in Awbrey Butte actually pay you back?

In most cases, yeah—if it’s done right.

Here’s the quick and dirty financial play.

Typical monthly rent for a garage-converted or small detached ADU in Bend hovers between $1,400 and $2,200.

Higher-end units with great finishes and views—especially on Awbrey Butte—can fetch even more.

Let’s say you spend $165,000 on a well-executed garage ADU.

Even if you rent it for $1,600/month, that’s over $19K a year in rental income.

Factor out expenses, and you’re still clearing enough to offset a portion—or all—of your mortgage.

And this isn’t theory.

One of our projects near Shevlin Park—a converted detached structure—brought in $1,900/month from the first week it hit the rental market.

The owner already had applicants before we finished painting the front door.

Here's the real kicker: that same property appreciated by over $110K according to a licensed local appraisal six months after completion.

So yes, the numbers can work—especially here in Bend.

Real ROI Looks Like This

Let’s break that down with some real-world math:

• Build cost: $165,000
• Rent: $1,600/month
• Net after expenses: ~$1,300/month
• Annual return: ~$15,600
• Break-even point: ~10.5 years

And that’s not including:

• Appreciation bump to your primary home's value
• Tax benefits like depreciation
• Potential for vacation rental income (if properly permitted)

Quick Takeaways:

• Rental income from ADUs in Bend typically covers or offsets mortgage payments
• Garage conversions offer faster ROI vs. detached new builds
• Properties with ADUs often appreciate faster than those without

Financing Without the Headaches

Not sitting on $200K in cash?

Most of our clients use one of these strategies:

• Home equity line of credit (HELOC) – Still the #1 most flexible option if you’ve got equity to tap—especially with the way Bend values have spiked over the last five years
• Renovation loan – Available through many local lenders and designed specifically for ADU or large-scale remodels
• Cash-out refinance – Consolidate debt and fund your build if your interest rate isn’t rock-bottom
• Construction loans – More paperwork, but a solid choice for new detached ADU builds or large conversions

Important to note: banks love resale-ready homes with income potential.

You’re not just asking for a loan—you're improving your collateral.

Pro tip: Work with a contractor used to coordinating with lenders. We’ve streamlined more than a few ADU builds by aligning scope of work with lender requirements up front—saving clients weeks of back-and-forth.

Avoid These ADU Pitfalls Like the Plague

Not everything about adding an ADU is sunshine and passive income.

Here’s the stuff that trips homeowners up most often—and how to avoid it.

• Building Without Permits – It may be tempting... but it will come back to bite you at resale or with fines mid-rental. Stick to permitted, code-compliant construction. Always.
• Assuming Short-Term Rentals Are a Given – Awbrey Butte—and most of Bend—has specific STR rules. Long-term rentals (30+ days) are usually okay, but vacation rentals need city permits—and those are tightly restricted in some neighborhoods.
• Not Planning for Long-Term Maintenance – An ADU is a compact home. That means HVAC, appliances, and utilities you’re responsible for. Either budget time (or hire a property manager) for upkeep.
• Overbuilding – It’s easy to fall in love with the ‘mini dream cottage’. But remember—the goal is ROI. Renters care more about privacy, soundproofing, natural light, and modern clean finishes than gold faucets.

Key Takeaways:

• Work with a contractor familiar with STR rules and permits
• Budget for maintenance like any other rental property
• Don't overbuild—stick to your budget and objectives

Where the ADU Market’s Headed in Central Oregon

Spoiler alert: ADUs aren’t a trend—they’re the new normal.

Oregon is doubling down on middle housing and pushing for higher residential density across cities.

Here’s what that means if you’re considering a new build or garage conversion in places like Awbrey Butte or Northwest Crossing:

• More zoning reforms—multi-ADU lots in some cases
• Parking and owner-occupancy conditions are loosening
• Prefab units are dropping timelines by up to 30%

According to data from the City of Bend, ADU permit applications increased 22% last year.

That momentum? It’s not slowing down.

Premium neighborhoods like Awbrey Butte are seeing more inquiries for high-end ADUs—even with higher build costs—because they add livable square footage without the need to move.

Expect interest from:

• Multi-generational families
• Remote workers seeking flexible living options
• Retirees downsizing but staying put
• Investors betting on long-term rental yield

Final Quick-Glance Insights:

• ADU laws in Oregon continue to favor development
• Prefab and modular builds are rising for timelines and cost savings
• Bend remains rent-strong, despite increased supply

The Last Thing I'll Say (Before You Call Me)

If you’re still reading, here’s what I want you to remember.

Building an ADU—or converting your garage—isn’t just a remodel.

It’s a smart, strategic step toward financial flexibility on your own land.

But only if you do it right.

Hire local. Work with pros who know what works—from foundation code to tenant privacy to ADU-friendly layouts that attract renters.

Don’t risk the next few years of permits and headaches because you wanted to save 5% up front.

Give us a call. We’ll assess your property, give you a realistic number, and map out what it really takes—not just to build—but to profit.

You don’t have to DIY your way through something this important.

We’re DCR Northwest—custom renovation experts and design-build ADU contractors serving Awbrey Butte, Northwest Crossing, Sisters, Redmond, and the greater Bend area.

Call us at 541-699-2502 or shoot an email to matt@dcrnorthwest.com.

Start renting smarter, living freer, and building equity with your own accessory dwelling unit contractor.

Explore More:

• Hiring the Best General Contractor for Your ADU
• Full Home Renovation Tips
• Our Renovation & ADU Services
• See Our Completed Projects
• About DCR Northwest