Most people run the numbers on a detached ADU and conclude Denver doesn't pencil. They're right about that specific scenario. A $300k build at $1,600/month rent is a 15+ year payback and that's before financing costs. But that's not the only scenario and it's not the one most house hackers should be using. Here's what the numbers actually look like on a basement conversion in the Denver suburbs: Purchase: $525k duplex or SFH in Englewood or Thornton Down payment: $18,375 at 3.5% FHA owner-occupied Monthly payment at 6.15%: ~$3,100 Basement conversion cost: ~$85k at current contractor rates Rental income: $1,400/month Effective monthly housing cost: ~$1,450 after rent offset For context, renting a comparable unit in the same neighborhood runs $1,800-2,000/month. You're building equity, paying less than rent, and the basement conversion pays back in roughly 5-6 years rather than 15+. The mistake people make is comparing detached ADU construction costs to rental income in isolation.…