Considering Prefab Category 2 Detached ADU options in Oakland, CA
Hi!,
I'm busy investigating prefab options for a 1000 sqft, ideally 3br pre-fab option to throw behind my home in Oakland, CA. The lot in question has a very large and empty backyard, so it'll be easy to carve out 1000 sqft). In general, I've had a hard time finding options in this marketplace, but my real goal is to bring the build of this ADU down to something on the order of $150/sqft -- a budget of around 150k which I will finance out of cash I have sitting. Considering FMR section 8 vouchers ($3042/mo according to FY 2020 HUD numbers which I hope I'm using correctly) that return against my cash invested exceeds my target of 20% y/y. I make the assumption I'll have 6k in costs every year (vacancy risk, maintenance costs, capex, insurance, and taxes) leaving me with roughly 30k in cash returned against my 150k budget or just around 20%.
Unfortunately, I'm in Oakland, CA. So, I'll spend maybe 10k in permits and architects, maybe 40k on utility connections, another maybe 50k on the actual prefab components (if I'm reading the only option I've found in cal precut) and another 50k on finishing and on-demand labor (with me doing things I can do to help keep costs down).
First, please do lay in to me about how foolish this sounds. I live in a vacuum of my own thinking and I've got thick skin -- I'd rather find out now that I'm an idiot than a year layer and way off on my estimates on both cost and ability.
And if you suspect maybe I'm CLOSE on the math, I'd love to understand how I can do this with real sweat equity and my own cash at a reasonable rate out here. Are there better (or alternative) options to a cal precut?
Thanks!!!