Converting detached garage to ADU
Hi there, converting a detached 330 sf garage to a studio apartment in Eureka, California. Extending 5.5 ft to add bathroom, running water and sewer lines from primary residence. Will keep it pretty simple. Anyone do something similar and have a cost breakdown or pitfalls to watch out for? Thanks!
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Yeah good question. So the plan is to do furnished rental medium term (travel nurses). I'm planning for $1,500/mo, but comps show it could go as high as $1,800. Utilities will be around $125/mo (I'm paying all since lease terms are so short), and budgeting for a slightly higher vacancy rate, since turns are more frequent. I've managed to fund the construction without debt, so cash flow on this project will be around $1250/mo on the ADU on the low end. The main house is also rented, and that is currently at a negative cash flow, so when it's all said and done pure cash flow should be closer to $900/mo. If we get the high end, and account for rent increases when the current lease on the main house ends in July we'll be closer to $1,500 pure cash flow.
I'll be super curious if you hit those numbers, as that would be a slam dunk for pricing. Are you planning to do any of that work yourself? That was about my budget too when I started, lol...also my first project.