Cost of building an ADU in Fremont

Cost of building an ADU in Fremont

Member since 2019 · 3 posts · 0 votes

My SFH is located on a 11,000 sf lot with 2800 sf living space (single story).

We are considering to build an ADU 900 square feet.

There are 3 options:

1. detached ADU

2. attached ADU

3. internal/conversion ADU that is located entirely within the 2800sf, making it 900 ADU and 1900 principal residence

We were told that #1/#2 would cost around 350k and #3 around 250k.  Are these numbers reasonable?

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Rental Property Investor · Santa Clara, CA · Member since 2019 · 160 posts · 156 votes
7y

@Daisy Chou

You can do it for less for 1 and 2, I think. 3 would definitely cost less.

I recently got permit approval in SJ (Willow Glen) for a 630 sqft attached ADU + 170 sqft addition to the existing unit. Here's my cost breakdown:

Architect + structural engineer$ 7,000
Park fee$ 4,450
School fee$ 2,192
Permit application$ 2,653
Permit Issuance$ 9,416
Contractor (estimated)$ 170,000
Inspections (estimated)$ 4,000
Landscaping and other miscellaneous$ 300
Total (estimated)$ 200,011


Let me know if you need referrals for contractors. Good luck with your project!

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  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    7y
    Originally posted by @Daisy Chou:

    We were told that #1/#2 would cost around 350k and #3 around 250k.  Are these numbers reasonable?

    Skilled labor in the Bay Area is super expensive. 

    I'd suggest looking at one of the prefab options out there as an option #4. The labor to pour the foundation and install the thing will be locally priced, but the assembly will be priced based on skilled labor elsewhere (China, etc).

  • Rental Property Investor · Santa Clara, CA · Member since 2019 · 160 posts · 156 votes
    7y

    @Daisy Chou

    You can do it for less for 1 and 2, I think. 3 would definitely cost less.

    I recently got permit approval in SJ (Willow Glen) for a 630 sqft attached ADU + 170 sqft addition to the existing unit. Here's my cost breakdown:

    Architect + structural engineer$ 7,000
    Park fee$ 4,450
    School fee$ 2,192
    Permit application$ 2,653
    Permit Issuance$ 9,416
    Contractor (estimated)$ 170,000
    Inspections (estimated)$ 4,000
    Landscaping and other miscellaneous$ 300
    Total (estimated)$ 200,011


    Let me know if you need referrals for contractors. Good luck with your project!

  • Member since 2019 · 3 posts · 0 votes
    7y

    Hi, Chen, yes I would like to have referrals. If you know any good, responsible contractors, please let me know.   And I would like to know how your project goes too! Thanks!

  • Specialist · San Jose, CA · Member since 2016 · 34 posts · 20 votes
    7y

    Hi @Chen Zhou , so just to clarify the 170K construction budget covers just an addition - not the construction of the entire unit. So you're using some of the existing home + addition to create the ADU.

    After talking to a number of architects and contractors I've heard it's difficult to find someone who will do the work for $500 sq/ft. 

  • Specialist · San Jose, CA · Member since 2016 · 34 posts · 20 votes
    7y

    @Daisy Chou those numbers you listed 350K for attached and 250 for conversion are consistent with what I've been seeing. Can you send me a message with the general contractors you spoke with?  I have someone really fantastic I can recommend too! 

  • Rental Property Investor · Santa Clara, CA · Member since 2019 · 160 posts · 156 votes
    7y

    @Caitlin Bigelow

    The $170k covers the cost of the entire 800 sqft addition (all new addition) project, including basic furnishing including air-conditioning and oven. $500/sqft is a rip-off.

  • Specialist · San Jose, CA · Member since 2016 · 34 posts · 20 votes
    7y

    @Chen Zhou wowza! That's awesome. I'm surprised you can build for so reasonably. That's probably what you would spend on construction in San Diego.... 

  • Member since 2019 · 3 posts · 0 votes
    7y

    @Chris Mason  Brilliant idea for #4.  I have been looking at  Tumbleweed Tiny Houses and thought about it too.   Not sure how feasible it is to be implemented like regulations, local laws, and permits etc.

  • Member since 2019 · 2 posts · 0 votes
    7y

    Thank you all for your input. I am associated with Daisy Chou to plan this ADU for our home.

    We were told by the contractor that:

    (1) A new/separate PG&E meter for the new ADU will cost around $17000.

    (2) A new Alameda County Water District(ACWD) meter will roughly cost more than 10000 too.

    (1) and (2) were included in the 350K and 250K estimate.

    To workaround (1) and (2) above, the contractor can add a non-PG&E and non-ACWD meter connected with existent meters to calculate ADU utility cost.

  • Rental Property Investor · Santa Clara, CA · Member since 2019 · 160 posts · 156 votes
    7y

    @Abe Shen

    If you really want to save money, you don't have to have separate meters for ADU. Both my architect and contractor recommended against adding a separate meter (cost is not worth it and you don't have to include that in the plan you submit to the city anyway at least in San Jose), but I did get a separate address for my ADU. Like you said you can add cheaper non-PG&E and non-ACWD meter connected with existent meters if you really want to keep track.

    Given the size of your lot, if I were you I would strongly consider 1) and 2) over 3). Much more privacy with 1) or 2) and you get to keep 900 sqft of space (!!!!) for maybe just a little more cost. With the right contractor, it's highly likely you can keep the construction cost of 1) or 2) under $250k.

  • Rental Property Investor · SF Bay Area, CA · Member since 2017 · 18 posts · 8 votes
    7y

    @Chen Zhou Would you mind sharing contractor contacts? I've been seeing closer to that $500/sf number which is putting me off the whole thing right now. 

  • Real Estate Broker · Walnut Creek, CA · Member since 2014 · 105 posts · 58 votes
    7y

    Has anyone here considered a prefab solution like Studio Shed? I'm considering using them to build ADU's to generate additional rental income on existing properties but am trying to research total costs a bit more. As long as construction costs stay high, I'd expect more solutions in the prefab space.

  • San Jose, CA · Member since 2017 · 25 posts · 5 votes
    7y

    @William Yeh I'm curious to know about rental ability for sheds/tiny homes, especially in California where rules may be more strict.  Like Daisy, I'm also looking to build in Fremont.  

  • Member since 2019 · 2 posts · 0 votes
    7y

    I agree with William Yeh. So far I only researched on https://www.tumbleweedhouses.com for prefab. I believe you can find more if you Google it. My major concern is the prefab still needs to hook up electricity, gas, water, and sewage with the main house. I wonder how much that will cost. An estimate needs to be made to a certain accuracy.

  • Real Estate Broker · Walnut Creek, CA · Member since 2014 · 105 posts · 58 votes
    7y

    @Laura C. From a market acceptance standpoint, I don't see there being any issue with the market discounting the desirability of a prefab ADU. If it's nice and it's functional, why would a renter care how it was built?

    As for building code, that varies from city to city but most cities have addressed ADU's and have clear guidance on the requirements for setbacks and building standards.

    @Abe Shen You are correct in that utilities and foundation need to be prepared ahead of time but that is no different than if you were to stick build an ADU. Every case will be different. There are no shortcuts for plumbing, power, and gas.

    If my ADU plans end up working out, I'll report back. Likewise if anyone has any success stories, would love to learn about your buildout.

  • San Jose, CA · Member since 2017 · 25 posts · 5 votes
    7y

    @William Yeh I should have been more clear - was curious if sheds/tiny homes were OK to be rented out from a legal standpoint. Don't seen any concern regarding market acceptance. Would love to look into sheds if there won't be any issues with the city in terms of permits and being allowed to rent it out. I don't know if they classify it differently. I had assumed things like tough sheds are in a different category vs something like a prefab ADU like the ones VHD builds.

  • CA · Member since 2019 · 1 post · 0 votes
    7y
    Hi Chen,
    Could you share your architect and contractor whom you used?
    Thanks much,
    Cutilon

    Originally posted by @Chen Zhou:

    @Daisy Chou

    You can do it for less for 1 and 2, I think. 3 would definitely cost less.

    I recently got permit approval in SJ (Willow Glen) for a 630 sqft attached ADU + 170 sqft addition to the existing unit. Here's my cost breakdown:

    Architect + structural engineer$ 7,000
    Park fee$ 4,450
    School fee$ 2,192
    Permit application$ 2,653
    Permit Issuance$ 9,416
    Contractor (estimated)$ 170,000
    Inspections (estimated)$ 4,000
    Landscaping and other miscellaneous$ 300
    Total (estimated)$ 200,011


    Let me know if you need referrals for contractors. Good luck with your project!

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