New to Real Estate · Los Angeles, CA · Member since 2021 · 70 posts · 31 votes
I just purchased my first property (SFR) back in November 22' and I am soon to be starting the construction process of an ADU garage conversion in the back, and i was wondering if I can live in the ADU once it's built and apply to be a Section 8 landlord so i can have a Section 8 tenant live in the main house?
Also, would the ADU have to be legally permitted? Would it be possible to have it non-permitted?
I just purchased my first property (SFR) back in November 22' and I am soon to be starting the construction process of an ADU garage conversion in the back, and i was wondering if I can live in the ADU once it's built and apply to be a Section 8 landlord so i can have a Section 8 tenant live in the main house?
Also, would the ADU have to be legally permitted? Would it be possible to have it non-permitted?
Why would you choose to not have a legal ADU when you can have one. Before the recent ADU laws, there often was no option to have a legal ADU and if you wanted an ADU it was not permitted.
Permitted ADU will cost more than an unpermitted ADU, but it will add far more value than an unpermitted ADU.
A more appropriate question may be is whether adding an adu is a good RE investment. In general it is one of the worse RE investments. It often adds less value than it cost to add the ADU. This negative position can consume many months and sometimes years of cash flow to recoup. The financing for ADU builds is typically worse than financing associated with a RE purchase. Building the ADU takes months during which there is no income versus buying there is income as soon as rented. It is typically cheaper to purchase a property with an existing ADU than build an ADU. ADUs detract from existing property. In your case, the garage is being converted. In addition there is usually less privacy, etc.
Make sure before you proceed with the ADU build, make you understand the value the ADU wlll add to the property. Typically you will start with a negative position.
I just purchased my first property (SFR) back in November 22' and I am soon to be starting the construction process of an ADU garage conversion in the back, and i was wondering if I can live in the ADU once it's built and apply to be a Section 8 landlord so i can have a Section 8 tenant live in the main house?
Also, would the ADU have to be legally permitted? Would it be possible to have it non-permitted?
Why would you choose to not have a legal ADU when you can have one. Before the recent ADU laws, there often was no option to have a legal ADU and if you wanted an ADU it was not permitted.
Permitted ADU will cost more than an unpermitted ADU, but it will add far more value than an unpermitted ADU.
A more appropriate question may be is whether adding an adu is a good RE investment. In general it is one of the worse RE investments. It often adds less value than it cost to add the ADU. This negative position can consume many months and sometimes years of cash flow to recoup. The financing for ADU builds is typically worse than financing associated with a RE purchase. Building the ADU takes months during which there is no income versus buying there is income as soon as rented. It is typically cheaper to purchase a property with an existing ADU than build an ADU. ADUs detract from existing property. In your case, the garage is being converted. In addition there is usually less privacy, etc.
Make sure before you proceed with the ADU build, make you understand the value the ADU wlll add to the property. Typically you will start with a negative position.
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
3y
If you do Section 8 for the main house and have unpermitted ADU, what makes you think you wouldn't get caught? The housing authority will do inspections in the main house and likely see the ADU.
Then the issue becomes if you don't get it with permits and you get caught, the longer you wait, the more changes can be made to building codes, which will just make it more expensive to build it out right.
For example to convert my garage in 2018/2019 cost around $75,000. Now it is about $150,000.