Accessory Dwelling in OC California - Is it worth it?
Hello BP Community,
I wanted to reach out and get opinions from local flippers/rehabbers who have done accessory unit additions in orange county california.
I have gotten quotes ranging from 150-200/sqft to almost 250/sq to build a new accessory unit and I am trying to dial in a better estimate to figure out what the cost/benefit might be and if this might be a deal. My intention is to flip but I can also take on as a buy and hold.
Coming up with good comps is a little harder... as some properties have accessory units, some don't and some are zoned R2. That being said, with properties with similar floor plans and accessory units I am seeing sales in the range of 850-895K in late 2017. Single dwelling with smaller floor plans are 650-700K in 2016
Property under contract 620K
City of Orange
Directly across local university
Zoned: R1
6000 sq ft
3bd/1ba - 1500 sq ft main dwelling
$2700 rent for main dwelling
main dwelling needs 50k of rehab on its own
allowed up to a 640 sqft accessory unit with an attached garage that does not count against 640 sq ft.
public access way available to accessory unit garage
$1800 potential rent for accessory unit
Have at it BP. Would love to get schooled and see if there are things I still need to account for.
Mahalo,
Matt