Maximizing ADU Investment with Tony Pasquale

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In Wheat Ridge, Colorado, what started as a simple plan for a new garage evolved into something much more ambitious. When the city finally legalized accessory dwelling units (ADUs), homeowner Tony decided to pivot—turning his garage design into a fully functional living space that would add both value and versatility to his property.

In this episode of The Radical Hospitality Show, host Zeke Freeman visits Tony’s newly completed ADU to unpack the journey from permit to profit, exploring the challenges, design decisions, and lessons learned along the way.

When the Law Changed, So Did the Plan

Tony’s original goal was straightforward: build a garage. But when Wheat Ridge finally passed its long-awaited ADU ordinance after years of debate, everything changed.

“We were going to build a garage,” Tony explains, “and then that transformed into building the ADU once the City of Wheat Ridge legalized it.”

It was a timely decision. Since 2016, cities across Colorado—including Denver, Arvada, and Golden—had been debating ADU policies. Wheat Ridge lagged behind until 2022, when it officially gave homeowners the green light. For Tony, who already planned to bring water, sewer, and power to the structure, expanding into a livable unit simply made sense.

The Design and Permitting Process

Once the plan pivoted, the process began again. Zeke and Tony revisited the design with the structural engineer, resubmitted to the city, and endured the inevitable back-and-forth of permits.

“Once we got going with Wheat Ridge, probably about four months,” Tony recalls. “Not too bad—I’ve seen worse.”

Like most ADU projects, the shift from garage to dwelling wasn’t just a matter of paperwork. Structural requirements changed dramatically—deeper foundations, more insulation, and upgraded systems all became part of the scope.

“A lot of people want to build a garage and then add a unit later,” Zeke notes. “But there’s a lot more that goes into making a space truly livable.”

Building for Comfort and Quality

Walking through Tony’s new space, it’s clear that the focus was on long-term durability, not cutting corners.

  • Radiant heat in both the garage slab and upper living area keeps the space warm and efficient year-round—an upgrade worth around $20,000.
  • Mini-split systems provide both heating and cooling, adding redundancy.
  • R-17 insulated garage doors with side-mount motors cost about $12,000, improving efficiency and maintaining ceiling height.
  • Epoxy floors, a sink, and 9-foot doors make the ground level a perfect multi-use workshop.

Tony’s eye for detail shows throughout the property. Even the garage includes a 30-amp RV outlet, 40-amp EV-ready circuit, and hot/cold hose bibs—all choices that add future value.

“We’re perfectionists,” Tony admits. “We’d rather wait and take time to make it right than rush something or do it cheap.”

The Sewer Challenge

One of the biggest hurdles came underground. Because the property slopes away from the street sewer line, the team had to install a dual-pump ejector pit system to push wastewater uphill.

Tony handled much of the installation himself, but he estimates it would add about $15,000 to a typical homeowner’s project.

“It’s one of those details that makes or breaks a build,” says Zeke. “Sometimes that’s the crux of the whole project—you either add it or you can’t move forward.”

The system even has a phone-connected alarm that texts Tony if there’s an issue—a perfect blend of hands-on craftsmanship and modern smart home integration.

Designed for Modern Living

Upstairs, the ADU feels nothing like a converted garage. With vaulted ceilings, two bedrooms, two full baths, a deck with a gas line for grilling, and custom cabinetry, the 960-square-foot layout lives large.

Tony’s wife handled the finishes, choosing a clean, contemporary aesthetic with handmade cabinets and carefully curated tile. Every choice was made with livability in mind—especially since the unit could serve as a rental, a workspace, or a guest suite.

“We wanted it to feel like a high-end home,” Tony says. “It’s our backyard. We didn’t want to build something cheap and regret it later.”

Weighing Rental Options: Short, Medium, or Long Term

Tony is still deciding whether to rent the unit out short-term on Airbnb, medium-term to traveling professionals, or long-term for steady income.

“We’re exploring medium-term right now,” he says. “It’s a good balance—less turnover than Airbnb, but more flexibility than a year-long lease.”

Zeke agrees, noting that medium-term rentals—especially to traveling nurses and remote workers—are increasingly popular in suburban Denver markets like Wheat Ridge. They offer strong cash flow without the daily management that short-term rentals demand.

The Final Numbers

So what does a project like this cost?

  • Low-end build: Around $300K–$325K for simpler finishes

  • Tony’s version: About $450K, including radiant systems, premium materials, and custom craftsmanship

With roughly 1,920 square feet of conditioned space (garage + ADU), that cost is still competitive compared to buying or building new.

“It’s not cheap,” Zeke says, “but you’re gaining a flexible, high-quality asset that can serve as a rental, guest suite, or future family space.”

The Takeaway: Build Smart, Build Once

Tony’s ADU isn’t just an addition—it’s a future-proof investment. By upgrading a simple garage into a fully equipped dwelling, he added both financial value and functional space to his property.

For other Colorado homeowners considering the same move, Tony’s advice is clear:

“Take your time. Work through the city. Spend where it matters. And make it something you’re proud of.”

Key Specs

  • Location: Wheat Ridge, Colorado

  • Program: 3-car garage + 2-bed, 2-bath ADU

  • Total Conditioned Area: ~1,920 sq ft

  • Systems: Radiant floor heat, mini-splits, dual-pump ejector pit

  • Budget Range: $300K–$450K

  • Rental Plan: Exploring medium-term furnished rental


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