California’s housing crisis presents a rare investment opportunity. The California ADU Fund transforms underutilized properties into high-value rental units—delivering strong returns while addressing the state’s 3.5 million-unit housing shortage.
Acquire
We target single-family homes in prime locations and convert them into triplexes and fourplexes using recent ADU-friendly legislation.
Develop
Each property is optimized for rental income, leveraging our cost-effective build model at $200 per square foot versus traditional $350-450 per sq. ft. construction costs.
Refinance & Hold
Properties are refinanced post-development, creating long-term, stable cash flow and appreciation for investors.
Our proven microdevelopment model leverages recent legislative changes to rapidly add new housing units, creating both financial returns and positive community impact.
A Proven Market in Need of Housing
The Inland Empire is one of the fastest-growing regions in the U.S., with a 30% population increase and some of the highest rental growth rates nationwide.
Strong Projected Returns
Targeting 27% IRR, with investor-preferred returns starting in Year one. 70/30 Limited Partner/General Partner split with 8% preferred annual returns, plus equity upside through property appreciation.
Vertically Integrated Services
Our in-house development team handles acquisition, permitting, construction, and property management, ensuring seamless project delivery and risk mitigation.
We’re leveraging our learnings and growth through hundreds of projects and millions worth of real estate developed.
"I currently have six properties I'm converting into triplexes. The overall experience has been fantastic. They're team is really intelligent and experienced. They give solid and concise advice. They give pretty accurate timelines and cost and so far its been a really good experience. I've never had anything near the cashflow that these projects produced."
Chris Seymore
Oceanside, CA
The fund is raising $20M in equity with limited spots available. Minimum investment starts at $100,000, with tiered preferred returns for larger commitments. Investors also benefit from depreciation tax advantages.
Subscribe to our "Deal of the Week" newsletter and other Micro Development related content.
Copyright 2025. Middle Housing Partners. All Rights Reserved.