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A couple of years ago, as I started to plan my retirement, I published an article called “When and Where?” Later, I followed up with a post explaining that I’d chosen the “when” (July 1, 2025) and that my husband and I were still thinking about the “where” but were inclined to stay put in the college town in Northern California where we’ve lived for almost 35 years.
One option we’ve been seriously considering is purchasing a home for ourselves with a floor plan that could accommodate our adult daughter, who’s struggled with unemployment and underemployment, if she runs out of options at some point. Our three-bedroom condo, while it has a guest bedroom and bathroom, is not really laid out well for long-term success in multigenerational living.
So for a while (going back as far as fall 2024), we’ve been looking around our area, specifically at homes with Accessory Dwelling Units (ADU) or with a separate wing or even downstairs ensuite bedroom with an upstairs–something that would allow some separation and privacy for all of us. But we wanted the home to be something we would like, too, and that would fit within our financial parameters. We signed up with a buyer’s agent in fall 2025 and got pre-approved for a new mortgage so that we could move quickly in case we found that perfect unicorn property.
We had almost given up on the idea of finding the right place in the town where we live. The housing market is tight and there just aren’t tons of options. We looked and looked at open houses and with our agent, but nothing seemed right–until one month ago today.
A house was listed on February 26. I saw the listing and our agent texted us about it, too. I wasn’t initially that excited. It has an ADU and it’s in a very desirable part of town, but it was old (more on that below), and, I thought, priced a bit high. But on February 28, we went out to lunch and then my husband said, “Is there an open house today?” There was, we went to it, came home, and my husband looked at me and said, “That checks all the boxes.” We texted our agent and went back with him the next day. He explained that given how popular that particular neighborhood is in our town, the property wasn’t actually overpriced. A few days later, we made an offer, actually bidding a bit under the asking price on our agent’s suggestion. The sellers countered, still below asking price. Our agent said it was a great deal and we should grab it. We were literally at a baseball game in Scottsdale, Arizona, when he called and said “Get on your phones NOW and accept the offer before the sellers get another one!”
So…we’re now buying a house and getting ready to sell our condo. We close on the house on April 6 and agreed to let the seller stay another month, so we’ll move there in the second week of May. I’m sort of out of breath at how quickly this is all happening. Even though we were looking/pre-approved, we’d just about given up on the idea, and our agent even admitted he didn’t think we were going to find something.
Here are the pros and cons of what we’re doing:
So it’s a “little” move (only a mile) but with big implications. Instead of drifting along comfortably in our condo, we’ll be moving, remodeling, getting a puppy, and possibly learning how to be Airbnb hosts. (We may also consider renting the cottage to longer-term tenants, but Airbnb allows us flexibility to use the space for our daughter if she needs it.)
I have lots of thoughts about what I’ve learned about buying, living in, and (hopefully) selling our condo, but I’ll save that for another day.
Congratulations on this exciting new development. I’m sure it gives you peace of mind to know that (if needed), your daughter would have a place to call her own as she figures out her life. I don’t know if you looked into the option of a portion of your pension going to her when you pass away. It means less money now but the security of her having a stable income for her lifetime is huge. If she doesn’t need it thats the best-but if she does it will be a godsend and while we can’t control much when it comes to adult children, knowing that they will have a regular income without complexity can make us rest easier if we are concerned for their future.
Thanks for the good thoughts! I already have my husband designated for survivor benefits for my pension, but we set up a trust and a successor trustee for her to provide some stability and guidance when she’s older.
DrLefty – I so enjoyed this article and was living vicariously thru you. HOW EXCITING. One suggestion… Put the same amount of your old HOA fees aside in a ‘Future Renovations’ account for a couple years. I did the same with the money I used to spend on my old snow plow services when I moved south. I found it easier to give myself permission to spend it that way and every time I did pull something out of there it would tickle me all over again: “I NEVER HAVE TO PAY FOR TO BE PLOWED OUT EVER AGAIN!” Hahaha.
Thank you! Great suggestion about the HOA fees!
Hi Dana,
Some thoughts after reading your post –
You may want to take a look at the tax rules regarding short term rentals. A potential trap exists if the average lease term for a property is seven days or less, then the taxing authority may consider your rental a trade or business activity. If determined to be a business the net income would be subject to self employment taxes as well as income tax.
Additionally, short term rentals with personal use can add a lot of record keeping work as the expenses have to be allocated between rental and personal. You may want to look at IRS Topic no. 415, Renting residential and vacation property.
If you ever sell this home the business depreciation, allowed or allowable, would likely be taxable and the gain on the sale would not be eligible for the exclusion under IRC 121.
I would also be concerned about other related rental issues from renting such as –
Does rental change how the property real estate tax rates are assessed?
Does the mortgage interest rate change due to the rental?
Does the rental impact your homeowners or other insurance?
Do you need additional or different insurance because of the rental?
I hope you have considered the possibility of having to live on the ground floor in the event future health issues precludes either you or your husband from walking up stairs.
Your focus on this move is on your daughter. If I were making this change I would consider that focus to be the primary guiding criteria in deciding how to use the ADU. Our adult children have all scattered across our country and I can think of nothing better than having any or all of them nearby and in the backyard in a separate unit would be near perfection to me.
One last thought, we have been in our house for almost 25 years and if I had the transaction to do over I wish we had put our home in a revocable living trust at purchase.
Congratulations on your new home. Best wishes for years of enjoyment.
Bill
Bill, is there anything that precludes you from putting your house in a revocable living trust now? I would not think so, but I am no expert.
There is not a legal reason. My issue in not doing so currently is there would now be the additional legal expense to re-title and record the deed transfer to the RLT (in addition to the legal cost to initially create the revocable living trust (RLT) which we do not currently have) and it is also my understanding that the particular, mostly unused, large home equity line of credit (HELOC) that we have would also have to be re-established and I worry that since I have stopped working and my earned income has ended I do not know if I would be able to get a new HELOC with the high limit and terms that my current HELOC loan has.
I expect that if my spouse dies first I would downsize my residence by moving and my wife would certainly have to move because of her current limited mobility should I die first. Thus when either of us dies or I become unable to maintain our current home a move is in our future.
Where Dana lives, in California, I believe she can choose to include a transfer on death provision as part of the titling in a deed in lieu of using a RVT but my state currently does not allow for TOD provisions in deeds. Fortunately my state intestacy provisions currently matches our bequest intents when including post death transfers via beneficiary designations and joint ownership. In the unlikely event that my wife and I die at the same time I expect the probate process is not so onerous in my state for what assets I will expect will be left as my state allows for a simplified administration process for small estates.
Thanks, Bill! I told my husband that if we start renting this ADU out, we definitely need a tax adviser. No more do-it-yourself taxes for us. And when getting our primary insurance policy for the new place, I discussed with the agent that we would need to revisit it if/when we began renting the ADU. That likely won’t be immediate, though—we need to get settled, we may be using it ourselves during our remodel, and I want to take the time to learn our options.
The main house is one story, so no issues there, thankfully.
We do have the purchase being titled into our trust!
Thanks for all the great input of things to think about.
I love this change for you!
I share my big old California house with one of my kids now since I’m mostly in my Arizona tin can casita.
I recently had the 95-year-old garage rebuilt, and refurbished the 1960’s era swimming pool. As my brother likes to say, maybe I’ll need to put the property on the market in 30 days or I might live in it another 30 years. Somewhere between those two points is my future. It was a project slog, but it’s done.. I also had financial jitters, they are also in the rear view mirror now. Whew!
Good luck with your move and projects.
Thanks, Catherine! Those sound like pretty major projects, but I’m sure you’re glad now that they’re done. I wouldn’t say I’m looking forward to that aspect of the move, but I’ll try to view it as an adventure, and I’m grateful that the contractor thinks he can get started pretty quickly.
Dr. Lefty,
Enjoyed your article, I wish you and your wife well on your new venture.
As a couple who rented a detatched unit on our properties, I’ll add my 2 cents worth.
Vacation rentals, like AirBnB is a whole different story than a month to month tenant.
Think twice about hosting different people on your property several times a month, as opposed to a tenant signed on for several months, a contract outlining details.Hopefully over the course of that agreement a friendship is established.
I would think a college town would offer a fair number of tenants, being students or professors.
Nothing wrong with AirBnB hosting. We enjoyed it for 10 years in Hawaii. Where guests show up happy, with money, no boss, in our properties case no kids. Views to die for with the best air in the world.
But a different animal than long term renting
Requiring more book keeping, computer skills via AirBnB , meeting guests, comunication skills and of course cleaning. Above all cleaning. Of course all of which can be subbed out, at a cost.
I’ll leave you with, vacation guests have a different schdule than folks with jobs, living on your property.
Aloha
..
Bob, thanks for sharing your perspective. We have some things to think through with regard to the ADU, and your list is really helpful.
The reason we wanted a property with an ADU is to have it available for family if needed, our daughter in particular. At the same time, if no one’s using it at specific points, it makes sense to get some income from it, especially given our increased housing costs. So we’re thinking through whether a longer-term renter makes sense vs. Airbnb. The former option gives us more stability and less turnover. The latter gives us more flexibility.
We probably won’t rent it out at all until after our remodel is done so that we can use the space ourselves if we need to. This gives us a bit of time to sort through the options.
Living in a college town with tight housing, either option is probably going to be successful for us. We just have to figure out what will work best for us.
Dana, the new place sounds perfect for you and your family. And you’ve avoided the pain of uprooting, for you and your friends! Now the search is over, what will you do with your extra free time?
Thanks, Ed! The first year, I think I’ll be pretty busy with the remodel, with getting and training a puppy, and (maybe) with learning how to be an Airbnb host. Lots of new endeavors to keep my aging brain agile!
Not uprooting from friends is a huge plus, and maybe we’ll make some new ones in our new neighborhood! I was sad about the idea of leaving our neighbors, but we’re only moving a mile away and can keep in touch as much as we/they want to!
Congratulations Dana. Sounds like a great move. I’m very happy things have worked out so well.
Thanks, Rick!
Congratulations—what an exciting step. This sounds like a smart, thoughtful move for your retirement, your future flexibility, and your daughter. The walkable location, beautiful yard, private ADU, and space to truly enjoy life make it feel like much more than just another house.
It also makes sense to feel a little nervous. A bigger payment, an older home, and upcoming remodeling are real considerations. But it sounds like you did your homework, stayed within your means, and found a place that genuinely fits your goals.
Wishing you a smooth closing, an easy move, and a wonderful new season in a home that seems full of possibility.
Jeff
Thanks, Jeff. We’re pretty amazed at how well this is coming together. I’m nervous because that’s pretty much how I’m wired, but there were things to be nervous about if we did nothing, too.
Hooray! It sounds like a great get, despite the cons which you’re honest with yourself about. Awesome outcome.
Your comment about things moving fast reminds me of selling our last house. We went under contract within 24 hours of listing. Yours is a bigger deal, just makes me think of it.
Congratulations!
Thanks! So we just got a full price offer for our condo! It’s not even on the market yet, but our agent asked to show it to a couple of buyers whom he knew were looking in our condo community, and the first buyers to see it immediately wrote an offer!
We’re surprised and pleased because some of the other condos have been lagging on the market, but ours is the biggest model, on the top floor, and has very nice views. We were hopeful, but this is great!
Keeps getting better 🙂
My, my… how exciting, congratulations to you both! My wife and I have been casually house-hunting ourselves, mostly in an attempt to escape our current half-acre yard. Casually, because it seems finding something suitable is far harder than it sounds — who knew that “less garden to maintain” would be such a niche requirement?
When we bought our current place years ago, we added a 2,000 square foot extension and did a major remodel, which involved knocking down most of the internal brick walls. I emerged from the experience a changed man, and not just emotionally. I can now tell you exactly what an RSJ (rolled steel joist) is, and why an acrow prop is your best friend when you’re removing a wall and would prefer the ceiling to remain where it is.
It’s quite the education. Enjoy every moment of
it!
Thanks, and good luck to you, as well! As I said in the post, we’d almost given up on finding something that would suit but then, there it was. It only takes one…
Best of luck with your new/old home. My wife and I sold our home of 32 years in September and moved 15 miles away to a 55+ community. I wish we had done it 10 years ago.
Thank you! Yes, I think a lot of people realize that downsizing and moving is tough at any age and wish they’d done it sooner…
Sounds like you guys are going into the new place with your eyes wide open, just don’t let the stress of the renovations burn you out. And I know a great obedience trainer for the new puppy; I wonder if Kristine does zoom classes.
This is a rare instance where I wish we could post pictures, as I’d love to see your new digs.
Maybe we’ll have to take a road trip to AZ with the pup and have Kristine train him there!
Renovations are always stressful. We re-did our front yard and then our kitchen in our previous home–the kitchen in particular was quite a project, though the finished project was fabulous. As I said, this time we have the fortunate bonus of a guest cottage with a full kitchen that we’ll be able to use while the main kitchen is being re-done. And I’m trusting that all of this will be at least somewhat easier as a retired person than it was as a very stressed-out working person…we’ll see!
Congrats. I love the “very walkable” part. It’s great that you don’t have to depend on a car for everything. Sounds like a exciting new adventure!
I’m a big walker and very excited about that. We’ll be able to walk one direction to downtown (Saturday Farmer’s Market in the park, dinners, movies, coffee) or jig the other way to campus (there’s a gorgeous arboretum along a creek for walks). If we turn the opposite direction, it’s a couple blocks to a large park with an overpass leading to a greenbelt. One of the reasons I want a dog so badly is for him to keep me company on walks!
Congrats, Dana! I look forward to hearing more stories as you settle into the new home. I know that having contractors in the house while you live there can be a challenge – so look forward to hearing about how it goes. Maybe I’ll write about that sometime, too.
Thanks, Jeff. I’m a bit nervous about that part but trying to think of it as an adventure…
We are in our early 70s, are retired and had lived in a two story home for 37 years. Good friends built a retirement villa in a nearby beautiful area, and suggested we buy the last remaining lot and build too. Zero entry home, top of the line appliances and all outdoor maintenance provided sounded very attractive. But we balked at the price.
We found a lovely well built 54 year old brick ranch style home for about half the cost, only a few miles away. No zero entry, but one level. I wasn’t so much concerned about discomfort from climbing stairs, but rather the fall risk. We moved into it six months ago. No HOA, but we hired trustworthy folks to handle all exterior maintenance. A good friend is a retired general contractor who gave it his seal of approval, and we check with him for advice on whom to call for any issues.
I think you and your husband, and your new dog will enjoy your new home. Congratulations!
That sounds great! I hope you’re enjoying your new home. The one we’re buying is single-story. It does have one step leading to the front door, and we may do something about that in the coming years. Overall, I think it will be OK for this phase of life, and our master bath remodel will take “universal design” into account. Like you, we’ll hire someone for the yardwork/tree care and have good handypeople on call.
Congratulations, Dana—this is an interesting development and based on what you’ve shared I think it will turn out to be a good move. We’ve had a successful multigenerational living arrangement for over eight years with our fully employed but not highly compensated adult daughter. Hopefully if you go that route with your daughter the new housing compound will be a great solution.
Old? A small part of my youth was spent living in a house built in 1789.
Is your new place single story?
Maybe the “old” comment is because I live in California. There aren’t houses from 1789 here, at least not that I know of!
It is–I should have mentioned that! We did look at some two-story homes but never could convince ourselves it was a good idea at our age.
Remember though that a stair climb chair is always an option if you no longer feel safe climbing stairs. If you are wheelchair bound it is less of an option due to the need for two wheelchairs. The stair climber chair was perfect for my mother in law when she moved into our house at 102 yo as she was still walking with a walker and did so even up to her passing at 103.
Stopping by to say congratulations. Sounds like a great location. Best of luck with the alterations.
Thanks, Kathy!
We toured our first CCRC last month (down in San Diego County), and I thought of you. We really liked it. I’m sure we’ll still put deposits down on one here in Davis and maybe another in San Diego. Despite this purchase, it still seems like a good idea for the future.
Definitely. I can’t think of a reason not to at least get in a list.
Don’t know what the wait lists are like in California, but here you would be the perfect age to get on one. At most places there’s no need to accept an apartment when you get to the top of the list unless you’re ready, but do check for that.
There seems to be some variation depending on the size/type of unit. For example, at the one we saw in La Jolla (San Diego County), they said some units became available in under two years but others (the largest oceanfront ones) could take forever. Plus residents already in the community had some “first refusal” priority. I talked to another salesperson from a different development in San Diego County (Carlsbad), and she said the average there is about a seven-year wait. At both places, I asked about staying on the list if you don’t accept a unit, and yes, that was possible. The one here in Davis is, from what I’ve heard, about a nine-year wait for certain floor plans.
There’s also an option, both at the La Jolla property and the Davis one, where you can have a smaller buy-in, but after 48 months, it’s non-refundable. If you want a payment that is refunded to your estate, it’s a lot more money. So that’s a permutation we’d have to think through, too.
Congratulations on selling the condo!!
It seems to be common here for entry fees to be 0, 50, or 90% refundable, with a corresponding increase in the cost. I opted for 0%, as I am not overly concerned about leaving a legacy. There is a for-profit chain that uses a condo system.
My CCRC seems to be the preferred destination for retired faculty from one of the local universities. Other area universities have different preferences. You might check to see what your former colleagues are doing – depending on how you feel about them it could be a plus or a minus.
Sounds great!! I’m glad you’re prioritizing getting the puppy. It’ll assure you get to know your neighbors very quickly.
We’ve never lived in a place with an HOA, and our house was built in 1917. My husband has a good contractor on his speed dial, so not a problem. We also use a service for snow removal (not a problem for you) and yard maintenance. I don’t think our costs are greater than HOA dues and we control what and how things get done.
ADUs seem to be getting increasingly popular—we have neighbors with a setup much like you describe. I suspect it has added a lot of value to their property.
Congratulations!
Thanks, Marilyn! I’m sure we’ll do the same with “good contractor on speed dial” and a yard service.
Interestingly, our agent tells us that in our market, ADUs are a turn-off for some buyers. I don’t really understand that, but I guess it’s like having a pool in the backyard–some people really want one and others don’t want the hassle. But I’m retired and have time and energy now, so I’m not afraid of learning to be an Airbnb host if that’s what we decide!
Dana, I was really happy to read about this new adventure of yours. It sounds like a lot of work, but will be worth it in the end, though. Looking forward to reading about your ups and downs as things progress. Chris
Thanks, Chris–we’ll keep you posted!
How exciting!
I will, of course, need to know all the details. And we do offer training courses near Phoenix :-).
I’ll definitely keep you posted. I’m very excited to get a pup.
Hi Dana,
Great to be “hearing” from you again.
I’m curious about your experience with the new changes post the class action settlement with National Association of Realtors with the seller no longer needing to pay both agents. I hope you could write a brief post about this after you have sold your condo so you can address the experience from both the buyer and seller side.
Good idea. We have the same agent for both sides, and we’ve discussed this with him, so I’ll have thoughts.
Perspective is interesting. The house is old- built in 1965. Our first house was built in 1918 and our second in 1929. They are both still standing 😎
Our condo where we live now was built in 2019, and the house we moved from in the 1980s, so we’re going backwards in time! I grew up in a house built in the 40s, but that turned into a teardown after my father died and it was sold.
Congratulations, Dana! It sounds wonderful and now that you aren’t preparing for classes, I’m sure you’ll find that the home improvement and maintenance projects will keep you busy, in a good way, during these first few transitional years of retirement, not to mention the care and training of a new dog 😉. My very best wishes. I’m looking forward to hearing about the inevitable new adventures.
Thanks, Linda! I’ve thought more than once how stressed I’d be about this if I weren’t retired. This all happened pretty quickly, and there are lot of moving parts between buying, selling, and talking with contractors about remodeling.
It’s definitely going to be a change in focus, but hopefully in a mostly energizing way.
Dana, thanks for the update. This new move seems to position you well for increased social connection — the neighbors, the vibrant community, the Airbnb, even the new puppy. In that sense, it seems like a smart move. It would seem responsible too, by being affordable, walkable, and potentially helpful to your daughter. Maybe even by being a dwelling in which you can successfully age in place? Your writing conveys much enthusiasm for the purchase even considering the cons. My hope is for you to enjoy your new home and associated projects, and to think of them as fruits of your saving and career.
Thank you! It’s interesting that you mention the “social connection” because that was one issue that gave us some pause. In the condo community we live in now, there’s a good social scene, and we’re quite connected–lunches out every couple of weeks, a monthly cards night, a monthly wine-tasting group, etc.–and we’d feel sad to give that up. But we realized that we’re only moving a mile away, and we can still join any or all of those activities and keep those relationships going as much as we and they want to. And hopefully we’ll meet new neighbors quickly. I have a friend here in town who knows a couple of the people on our new street, and they’re already planning a “welcome to the neighborhood” gathering for us. Isn’t that nice?
Dr.Lefty, first time commentor here on HD. Please keep contributing posts. I have really appreciated your articles on your parents and children. I truly hope you and your husband will enjoy your new home and never regret your decision. I look forward to reading more of your posts in the future.
Nancy
Hi Nancy! That’s so kind of you. Thanks for the good wishes on the new home. Thank you for commenting.