Wanted to connect with BiggerPocket members who are located in San Jose and actively interested to build and invest in Accessory Dwelling Units (ADU) as an affordable rental option. Due to the cost of living crunch, San Jose and many other California Cities have relaxed the planning requirements for Accessory Dwelling Units (ADU). The Benefits of San Jose's ADU Program
Create more affordable housing opportunities
Provide an income opportunity for homeowners (Rentals)
Provide housing to extended family members or disabled persons
Promote infill development without significant change to a neighborhood's character; and
Encourage the use of public transportation.
Single-family lots that are 3,000 square feet or greater may qualify.
This is a group for anyone (homeowners, investors, and builders) interested in these changes in ADU rules. Looking forward to exploring the world of ADU Investing with everyone. Please feel free to connect and comment.
Here's a good ongoing post I started quite awhile back. ADUs are a great way to invest, right in your own backyard, literally.
Have you built one already? I'm looking to do mine sometime in 2019. Prices keep going up and the darn tarriffs arent helping. But for cash flow and adding equity, if you can hold it, its going to likely be better than many other investments.
Here's a good ongoing post I started quite awhile back. ADUs are a great way to invest, right in your own backyard, literally.
Have you built one already? I'm looking to do mine sometime in 2019. Prices keep going up and the darn tarriffs arent helping. But for cash flow and adding equity, if you can hold it, its going to likely be better than many other investments.
Investor · San Jose, CA · Member since 2018 · 313 posts · 230 votes
7y
I am also very interested in learning more about people's ADU experiences. I am securing financing now to build a detached 2nd floor ADU above my garage in downtown SJ (Northside Neighborhood).
Rental Property Investor · Santa Clara, CA · Member since 2019 · 160 posts · 156 votes
7y
Hello everyone, I recently got permit approval in SJ (Willow Glen) for a 630 sqft attached ADU + 170 sqft addition to the existing unit. I'm happy to share my experience working with architect, the city, and contractors here. It took me about 4 months to get my permit and now I'm 3 months away from completion of the construction. Let me know if you have any specific questions.
I do want to point out that starting from July 2018, owners now can rent out both units without living in the property. With more relaxed rules from July 2018, it makes a lot more economic sense to invest into building an ADU: http://www.sanjoseca.gov/DocumentCenter/View/78534
Real Estate Broker · San Jose, CA · Member since 2016 · 33 posts · 17 votes
7y
Hi Stephen/All, I'm in San Jose as well and am interested in learning more about your experience with ADU's and plans for the future. I had written off investing locally, but perhaps this niche pencil's out! Let me know if you need help with zoning and valuations questions!