Pre-fab ADUs present good rental income opportunity

WELCOME HOME—The two-bedroom Moon model is one of several types of prefabricated houses available through Orbit Homes in Malibu. The homes can be set in a back yard for a second dwelling unit. Courtesy photos

A new company, Orbit Homes, is converting homeowners into landlords by “dropping” ADUs— accessory dwelling units—into their backyards.

In an effort to provide more housing in the state, new laws in California took effect this year that encourage homeowners to build so-called ADUs, als...

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