Should I Build My Own ADU - Multi Unit?

Question

I just hired an architect to design and plans submit for ADU in my 8 multi unit to use the tuck under parking.

Some people say do not try to be the general contractor as it will take way more time, costly mistakes and will be nearly impossible to manage with current work. best to hire a company that will do it all and cost about $250 per square foot. I have 1000 sqft so $250k.

if I have no GC and manage all the subcontractors I will not have a Rolodex so have to find subcontractors and I’m sure there are a million other complexities. Not sure how much money % I can save if I do it myself too?

if anyone has ever done this themselves I would love to hear your thoughts. Especially if you are in LA! Thank you

Alan Asriants · Answer

Hey David, my partner builds these in the LA County area. I would be happy to connect you

Dan H. · Answer

My market is San Diego so I do not have direct referral for a GC in north Hollywood but I will say my preferred way to get contractors is direct referral. I consider the two best sources is from other trusted contractors and other RE investors.   After those sources are RE agents, mortgage brokers, friends and family.  Behind referral on on-line sources like Next door, Google review, FB marketplace, etc.   of those I like next door best because it is hard to fake and the reviews are easily tied to a reviewer in your community.

The costs of ADUs vary significantly for various reasons including by ground up vs conversion, difficulty with lot (sloes, access, etc), finishes, and even the size (bigger typically have lower PSF).

Good luck

Dan H. · Answer

The good GCs charge 20% but this does not equate to your savings because the GC will have better contacts, have namer experience coordinating contractors, be more familiar with permit process and expectations of the inspectors.   My belief is that you will be challenged to realize a 10% savings loan n your first effort and there is some chance it will cost more than if you used a GC.

I would recommend against being the GC unless you are confident of doing more than one effort.   We act as GC on our efforts but we have gotten tired of the effort involved.  So. I am training our son to basically do the rehabs but there is a learning curve.  He is leading his 2nd rehab and it is taking longer than I would take (but I have done it many times).   In addition I am giving him freedom to explore (to a certain extent) on my dime. This is for a LTR in a nice area (A-/B+ area (pt Loma), but B unit due to MF).  For example he is trying to place a bookcase door to access a small amount of storage from the bathroom.   No way we can get additional rent to justify this effort. He is also planning on a tile accent wall.  Again I cannot collect rent to justify this cost/effort.   He is putting in a spa (I think because it is 4 units this expense can be justified).  We wants to rip out a perfect pre-fab shower enclosure to put in a custom tile enclosure.  I think I will not let him make this upgrade as a 5 year payoff would require over $100/month additional rent.

My point is certain things are learned with experience and 1) acting as GC once does not provide an opportunity to leverage the experience 2) mistakes can be costly.

good luck