ADU Prefab options in Bay area

Land & New Construction
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ADU Prefab options in Bay area

Namit Raisurana
Investor · San Carlos, CA · Member since 2017 · 37 posts · 17 votes

Hello,

I am considering putting an ADU behind my rental property in East Palo Also. Keeping the setbacks aside, I can build around 40*20 = 800 sf ADU. Keeping rentability in mind, I am trying to do a 2bed/1bath

I have been looking at options and looks like the cheapest construction cost is going to be around $250/sf + many other additional cost. I have been talking to various other Prefab companies and below is my analysis until now -

a) Abodu - really nice adu, have a model that you can view in Redwood city. will cost around 230k all inclusive for under 500sf. 1b/1ba

b) Veev - pretty nice adu, have a model that you can view in East palo alto. will cost around 200k all inclusive for under 570sf, but 70sf is for covered deck, so essentially living space is around 500sf. 1b/1ba. good thing is they seem to be an established company and doing bunch of other construction projects in bay area

c) Sonderpods - have not seen these yet, but i have been talking to them. their cost will be around 190k (doesnt include appliances cost) for 750sf, 2b/1ba. This seems most attractive from a cost perspective, but they also seem to be very new in this game. from some quick research their CEO is not even doing this full-time

Others that I have across that I still need to research are -

https://www.shedshop.com/models-prices/studio/https://connect-homes.com/models
http://tallerescape.com/vmd/

http://kithaus.com/

https://www.cuttingedgehomes.net

The factors that are important for me in making the decision are -

i) Price

ii) Confidence whether the ADU seller will be around when issues start showing up in 5+ yrs

iii) Ability to deliver / references

Would love to know if any of you have done a similar analysis already or have used any of these companies?


Thanks

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David Reo
Investor · Bay Area, CA · Member since 2019 · 44 posts · 17 votes
6y

@Namit Raisurana

I have heard other investors talk about a company called Boxabl based in Las Vegas doing exactly this. From what I have heard, they have a 300 sq ft model for around $50k. Pricing could be area specific ,but I hope that helps.

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  • Chen Zhou
    Rental Property Investor · Santa Clara, CA · Member since 2019 · 160 posts · 156 votes
    5y
    Originally posted by @David Song:

    Why bother with prefab when you can build custom ADU fitting your backyard shapes? the cost difference is not big enough to justify the sacrifice in quality and design flexibility. In premium BAY area locations, the quality is much more important than saving a few bucks. Come on, you are adding value to your property, it's not time to get cheap.

    I checked a few Prefabs, they are actually more expansive than my site built cost, if you add the additional utility, foundation, and soft cost. I think the problem is they lack enough scale to cut down the cost. I chose to site build until a true good quality prefab can prove itself sometime in the future.

    Agreed. I researched into prefab, but realized that I don't get any cost advantage at all. Ended up going with stick build that averaged $300/sqft including permitting and landscaping, solar and everything. If I want to go with high-end finishes, I can, but it should be my choice as well. Don't think any of these prefab players can match this price in the bay area in 2021.

    1Reply
  • Chen Zhou
    Rental Property Investor · Santa Clara, CA · Member since 2019 · 160 posts · 156 votes
    5y
    Originally posted by @Kevin Chen:

    Fwiw, we've had custom, stick-built projects for cost-efficient homeowners go for $260-$275/ sq ft and 3-5 months of construction. End to end, 7-9 months depending on speed of design and permitting is reasonable with a good GC who moves quickly and a well managed project.

     Sounds doable. Can introduce contractors as well.

    0Reply
  • Chen Zhou
    Rental Property Investor · Santa Clara, CA · Member since 2019 · 160 posts · 156 votes
    5y
    Originally posted by @Amit M.:

    @Chetan Patil that's a good question, as Ive been hearing about how several people who added ADUs have been getting effed on the new appraisals! Basically appraisers are totally subservient to the banks, and have not been receptive to the value of an ADU. Partly because ADUs are relatively new, and appraisers are very conservative (read: chicken sh!t) to allow much value for them- either as added sq footage, OR as added income property. 2 years ago I thought this was going to happen, but I would have hoped that by now it's gotten more standardized to add some tangible value to an SFH+ADU.

    So if anyone has had direct experience where they have gotten anything more than a token $ value for adding an ADU to an SFH, please chime in!

    Try Figure.com to take money out. They treat ADU square footage the same as main house square footage. I was able to take out more than what I put into my San Jose ADU ($250k) to invest into my second ADU.

    1Reply
  • Gabe T.
    Rental Property Investor · Palo Alto, CA · Member since 2021 · 27 posts · 22 votes
    5y

    @Chen Zhou

    Is this on your primary residence? I just spoke with figure.com last week and they said they do not have a product for investment homes yet. Would be great if they ever do.

    0Reply
  • Chen Zhou
    Rental Property Investor · Santa Clara, CA · Member since 2019 · 160 posts · 156 votes
    5y
    Originally posted by @Gabe T.:

    @Chen Zhou

    Is this on your primary residence? I just spoke with figure.com last week and they said they do not have a product for investment homes yet. Would be great if they ever do.

    They used to have product for investment homes...Looks like they just changed policy...

    0Reply
  • Priti Makani
    Member since 2022 · 1 post · 0 votes
    3y

    Wondering if you had decided or used a prefab company to build by now... and if yes which one did you go with?

    Thanks!

    0Reply
  • Coba Cao
    Member since 2022 · 9 posts · 1 vote
    3y

    I came across their YouTube Channel and they are local. Seems to be more affordable than most other options. Im going to get a tour of their facility tomorrow. 


    https://www.adu.works/ 

    0Reply
  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    3y
    Quote from @David Reo:

    @Namit Raisurana

    I have heard other investors talk about a company called Boxabl based in Las Vegas doing exactly this. From what I have heard, they have a 300 sq ft model for around $50k. Pricing could be area specific ,but I hope that helps.

    Boxable has generated a lot of buzz, but they are YEARS out on delivering units. 
    0Reply
  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    3y
    Quote from @Michael Frank:

    Hey all - my quick summary on my experience with this:

    - i haven't really seen companies getting adus to turnkey in the bay area for under $300 / sqft consistently

    - make sure the company you engage has a track record on this and not just nice looking renderings on their website. I would be very careful about some of the companies advertising adu's because of their lack of experience

    - if you're site isn't flat, make sure your quotes are specific to your site

    - understand the state adu policies - they generally take precedent over local ones and significantly less restrictive than those listed by local municipalities. the state has a technical team that you can email for guidance and they have been very responsive and helpful in my experience. 

    Local laws always can be stricter than State laws, but not more relaxed. State laws are the baseline, but local code can be stricter. 

    0Reply
  • Byron VallesPro Member
    MSFP, CFP, Financial Advisor · San Francisco Bay Area · Member since 2020 · 66 posts · 53 votes
    3y

    I'm so glad I bumped into this post. 

    I'm finishing up my Detached 400sqft garage to ADU conversion in the East Bay (Concord) After speaking with a few Design-build companies who all quoted $200K+ I decided to go the owner build route acting as the GC and just hire subs. It's worth mentioning that I have no experience in construction but figured the project was relatively small so i'd be prefect to learn.

    All in cost will be $80K (including design, materials construction, permits, finishes etc.) and total time 11months. 

    Now I've decided to add an additional 2bed ADU and really struggling to decide if the time/energy trade off is worth going with a prefab vs acting as GC again.

    650-376-0034
    1Reply
  • Tomer Ginsberg
    Member since 2020 · 3 posts · 0 votes
    3y

    I would recommend checking ADORE Homes ADU (www.adore-homes.com). They have more than 30 floor plans to choose from and to the best of my knowledge no company can beat their pricing.

    0Reply
  • Michelle Chern
    Member since 2021 · 2 posts · 0 votes
    3y
    Quote from @Byron Valles:

    I'm so glad I bumped into this post. 

    I'm finishing up my Detached 400sqft garage to ADU conversion in the East Bay (Concord) After speaking with a few Design-build companies who all quoted $200K+ I decided to go the owner build route acting as the GC and just hire subs. It's worth mentioning that I have no experience in construction but figured the project was relatively small so i'd be prefect to learn.

    All in cost will be $80K (including design, materials construction, permits, finishes etc.) and total time 11months. 

    Now I've decided to add an additional 2bed ADU and really struggling to decide if the time/energy trade off is worth going with a prefab vs acting as GC again.

    @Byron Valles - curious if you decided to go with the pre-fab or self-GC route for your 2bd ADU?

    This is a great post, thank you! Following for any updates on more current recommendations for pre-fab companies versus hiring sub-contractors in the Bay.

    0Reply
  • Byron VallesPro Member
    MSFP, CFP, Financial Advisor · San Francisco Bay Area · Member since 2020 · 66 posts · 53 votes
    3y
    Quote from @Michelle Chern:
    Quote from @Byron Valles:

    I'm so glad I bumped into this post. 

    I'm finishing up my Detached 400sqft garage to ADU conversion in the East Bay (Concord) After speaking with a few Design-build companies who all quoted $200K+ I decided to go the owner build route acting as the GC and just hire subs. It's worth mentioning that I have no experience in construction but figured the project was relatively small so i'd be prefect to learn.

    All in cost will be $80K (including design, materials construction, permits, finishes etc.) and total time 11months. 

    Now I've decided to add an additional 2bed ADU and really struggling to decide if the time/energy trade off is worth going with a prefab vs acting as GC again.

    @Byron Valles - curious if you decided to go with the pre-fab or self-GC route for your 2bd ADU?

    Unfortunately the process for adding a second ADU at that property is rather difficult. I basically would have to go through SB9 guidelines which are really new. I got a quote from VIlla but once we figured out that we would have to go through SB9, they backed out stating they didn't feel comfortable going through the permit process.


    650-376-0034
    0Reply
  • Jacob Polin
    Member since 2022 · 14 posts · 4 votes
    3y
    Quote from @Byron Valles:

    I'm so glad I bumped into this post. 

    I'm finishing up my Detached 400sqft garage to ADU conversion in the East Bay (Concord) After speaking with a few Design-build companies who all quoted $200K+ I decided to go the owner build route acting as the GC and just hire subs. It's worth mentioning that I have no experience in construction but figured the project was relatively small so i'd be prefect to learn.

    All in cost will be $80K (including design, materials construction, permits, finishes etc.) and total time 11months. 

    Now I've decided to add an additional 2bed ADU and really struggling to decide if the time/energy trade off is worth going with a prefab vs acting as GC again.


     Amazing! Did you have a good experience with your designer?

    0Reply
  • Byron VallesPro Member
    MSFP, CFP, Financial Advisor · San Francisco Bay Area · Member since 2020 · 66 posts · 53 votes
    3y
    Quote from @Jacob Polin:
    Quote from @Byron Valles:

    I'm so glad I bumped into this post. 

    I'm finishing up my Detached 400sqft garage to ADU conversion in the East Bay (Concord) After speaking with a few Design-build companies who all quoted $200K+ I decided to go the owner build route acting as the GC and just hire subs. It's worth mentioning that I have no experience in construction but figured the project was relatively small so i'd be prefect to learn.

    All in cost will be $80K (including design, materials construction, permits, finishes etc.) and total time 11months. 

    Now I've decided to add an additional 2bed ADU and really struggling to decide if the time/energy trade off is worth going with a prefab vs acting as GC again.


     Amazing! Did you have a good experience with your designer?

    I did! he does plans on the side so from his 9-5 so the revision process took a little bit longer than I expected but I saved a ton of money, and he was otherwise easy to work with, so I was happy. 


    650-376-0034
    1Reply
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