Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Land & New Construction
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

50
Posts
16
Votes
Darian Sanayei
  • Real Estate Agent
  • Temecula CA
16
Votes |
50
Posts

Building a ADU in backyard

Darian Sanayei
  • Real Estate Agent
  • Temecula CA
Posted

I'm trying to build a ADU in my backyard. I am doing owner builder so hiring subs for each job. I have been struggling finding fair priced reliable contractors in my area. If anyone knows a good go to in Temecula California. I am building ground up so any contractors that do framing, plumbing, electrical, roofing, etc. Helps!

Thank you

Murrieta Menifee Winchester Temecula Riverside

User Stats

1
Posts
1
Votes
Replied
Quote from @Darian Sanayei:

I'm trying to build a ADU in my backyard. I am doing owner builder so hiring subs for each job. I have been struggling finding fair priced reliable contractors in my area. If anyone knows a good go to in Temecula California. I am building ground up so any contractors that do framing, plumbing, electrical, roofing, etc. Helps!

Thank you

Murrieta Menifee Winchester Temecula Riverside


Subic Bay LLC - 951-323-8417

Licensed, reliable guy. I'm actually looking into an ADU as well with him.

User Stats

544
Posts
298
Votes
Sean Walton
  • Wholetailer & Architect
  • San Francisco, CA
298
Votes |
544
Posts
Sean Walton
  • Wholetailer & Architect
  • San Francisco, CA
Replied

I haven't done this ground up but I have done 2 interior remodels. The first I hired a separate framer and subs. On the 2nd I hired all licensed trades but separately. I would check with your insurance agent and the city. A lot of cities require you to get a work comp policy if you are an owner builder unless you hire all people with their own policies. Some contractors are licensed but have no staff just them so they are exempt from work comp so if they injure themselves you could be on the hook. Your homeowner policy may cover minor repair work but probably not a large construction project. 

I ended up having to get a state fund work comp policy for $5000 which I think is the minimum amount regardless of scope. If you have no track record that would probably what you would have to do. Factor it into your cost and decision. 

It is cheaper, in general, to sub out like you say but if you have no experience sequencing the work and talking to subs you may be scarring them off. They don't want you saying to start in 2 weeks but your framer takes longer and now they can't start for 4 weeks. If your project takes 4 months instead of 2 by hiring a GC it may end up costing more in the long run.

BiggerPockets logo
PassivePockets is here!
|
BiggerPockets
Find sponsors, evaluate deals, and learn how to invest with confidence.

User Stats

50
Posts
16
Votes
Darian Sanayei
  • Real Estate Agent
  • Temecula CA
16
Votes |
50
Posts
Darian Sanayei
  • Real Estate Agent
  • Temecula CA
Replied
Quote from @Darian Sanayei:

I'm trying to build a ADU in my backyard. I am doing owner builder so hiring subs for each job. I have been struggling finding fair priced reliable contractors in my area. If anyone knows a good go to in Temecula California. I am building ground up so any contractors that do framing, plumbing, electrical, roofing, etc. Helps!

Thank you

Murrieta Menifee Winchester Temecula Riverside


Update: this ADU is finished and rented out. Very happy with how it turned out. Hit a few bumps throughout the process but overall went good and onto the next one!

User Stats

5,795
Posts
6,679
Votes
Dan H.
Pro Member
  • Investor
  • Poway, CA
6,679
Votes |
5,795
Posts
Dan H.
Pro Member
  • Investor
  • Poway, CA
Replied
Quote from @Darian Sanayei:
Quote from @Darian Sanayei:

I'm trying to build a ADU in my backyard. I am doing owner builder so hiring subs for each job. I have been struggling finding fair priced reliable contractors in my area. If anyone knows a good go to in Temecula California. I am building ground up so any contractors that do framing, plumbing, electrical, roofing, etc. Helps!

Thank you

Murrieta Menifee Winchester Temecula Riverside


Update: this ADU is finished and rented out. Very happy with how it turned out. Hit a few bumps throughout the process but overall went good and onto the next one!

Have you tried to extract the value add; have you gotten an appraisal?

the value added versus cost to add, especially in single family zoned areas, typically results in a large negative initial position.  recovering this negative position can consume years of the actual cash flow when using realistic expense estimates.  

Hopefully this is not the case where you added the ADU and the value added by the ADU exceeds the cost of adding the ADU.  

Best wishes






  • Dan H.
  • User Stats

    50
    Posts
    16
    Votes
    Darian Sanayei
    • Real Estate Agent
    • Temecula CA
    16
    Votes |
    50
    Posts
    Darian Sanayei
    • Real Estate Agent
    • Temecula CA
    Replied
    Quote from @Dan H.:
    Quote from @Darian Sanayei:
    Quote from @Darian Sanayei:

    I'm trying to build a ADU in my backyard. I am doing owner builder so hiring subs for each job. I have been struggling finding fair priced reliable contractors in my area. If anyone knows a good go to in Temecula California. I am building ground up so any contractors that do framing, plumbing, electrical, roofing, etc. Helps!

    Thank you

    Murrieta Menifee Winchester Temecula Riverside


    Update: this ADU is finished and rented out. Very happy with how it turned out. Hit a few bumps throughout the process but overall went good and onto the next one!

    Have you tried to extract the value add; have you gotten an appraisal?

    the value added versus cost to add, especially in single family zoned areas, typically results in a large negative initial position.  recovering this negative position can consume years of the actual cash flow when using realistic expense estimates.  

    Hopefully this is not the case where you added the ADU and the value added by the ADU exceeds the cost of adding the ADU.  

    Best wishes






    I did not do a full appraisal, just brokers opinion to get the PMI removed which was the goal. I personally think there is just not enough comps yet to show the true value of ADU's. This property cashflows very well now, so I do not plan to sell for quite some time. 

    I would love to purchase a property that has done all of the work already, and cashflows. So if you see any let me know and ill buy it!