Austin, TX · Member since 2020 · 7 posts · 0 votes
Hi all,
Looking into putting a pre fabricated ADU in the backyard to rent. A few questions:
1) can a "singular" non-modular mobile home get over my house and into the backyard? Or must it be modular?
2) I would like to spend around $100K for the ADU and the installation - does anyone know a manufacturer who they have used that they can recommend? Or a contractor?
3) Does anyone know if the manufactured home sq footage would go into the single family home's sq. footage calc? Ex: existing home is 1000 sq ft and I add a 700 sq ft pre fac ADU in the back. When I sell the home, is the sq ft 1000 or 1,700 sq ft?
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
6y
3) No. It's considered a "feature," like a swimming pool or "bonus room." An appraiser will compare this home with that feature to other otherwise similar homes that also have that particular type of feature. And they aren't going to get into it being a 700 sq ft v 550 sq ft feature any more than they're going to give value for your swimming pool being 3 feet longer as compared to another swimming pool. Just like you don't necessarily want the most over-improved home in the neighborhood, you don't necessarily want the nicest of that type of feature, if you're focused on resale value (as opposed to other considerations, like rent and personal preference).
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
6y
3) No. It's considered a "feature," like a swimming pool or "bonus room." An appraiser will compare this home with that feature to other otherwise similar homes that also have that particular type of feature. And they aren't going to get into it being a 700 sq ft v 550 sq ft feature any more than they're going to give value for your swimming pool being 3 feet longer as compared to another swimming pool. Just like you don't necessarily want the most over-improved home in the neighborhood, you don't necessarily want the nicest of that type of feature, if you're focused on resale value (as opposed to other considerations, like rent and personal preference).
@Drew Rehman The way I read the comment above is that ADUs in general will not go into the home square footage calc.
@Chris Mason Does you your comment about "features" apply just to manufactured ADUs or does it apply to all ADUs?
Applies to detached ADUs without interior access between the ADU and the house.
The term "manufactured ADU" does not appear in mortgage guidelines and I've never seen it explicitly used by an appraiser in an appraisal report, but...
If that "manufactured ADU" is too much like a glorified trailer, the appraiser MAY view it no differently than an RV parked in the driveway. It really depends on what you're putting up, people from this small SoCal town called "Joshua Tree," which I'd never even heard of before being in the mortgage biz, call me from time to time thinking that what's basically no more than three trailers on vacant land constitutes a "triplex." No idea what's going on in that town, maybe it's really good drugs or something, IIRC a casual google search did reveal it was near one of the big annual music festivals where 20somethings go to remove their clothing, dance, and imbibe various substances.
Ultimately it is an appraiser you need to sell, not me or your LO, and as always with sales good products are easier to sell.
Specialist · San Francisco, CA · Member since 2019 · 51 posts · 39 votes
6y
@Drew Rehman Is your project in Santa Clara - unfortunately, if it is, you're going to have a very hard time finding someone who can delivery something at that price. If you're okay with what is basically a tiny home (they can be very nice), then you might be able to get close to $100k but it will be close.
From a lot coverage standpoint, if you're under 800sqft or 1000sqft in CA, typically you are exempt from lot coverage issues.
On the comps and appraisal issue, the adu comps should count towards square footage, but that doesn't necessarily mean it will appraise at the same cost per sqft as the rest of the house.
Investor · Coeur D Alene, ID · Member since 2016 · 10 posts · 1 vote
6y
@Drew Rehman
I don’t know about zoning in your specific area, but you can have tiny manufactured homes delivered on trucks. There are two types. Those that are built on trailers and thus have wheels. These are certified the same as an RV and you wouldn’t want them. The second type, is a prefab tiny home ready for foundation. You would pour the foundation, tie into the sewer and have electrical ready. Then, plop that bad boy on top of the foundation. If your plan is to rent both units, then the appraisal should be relative to the gross rent. I would call an appraiser in your area and ask what their gross rent multiplier is. This will help get a good evaluation of what it will be worth. Figure out the rents and essentially move backwards.