Who's building or looking into building ADU's ?

@Pavan Sandhu

I am! Just finished my first one last month. I also go meetups in the LA area with people who are interested in ADU development.

I'm getting ready to submit my plans for my ADU in San Jose!

I got my permit today.. ! 

So, I've considered adding a garage/ apartment to an existing SFR rental that cash flows well now and the numbers look very good with an additional unit rental, but, my concern is the single utility bill for both units on the one property. How to divide water and electric bills without tenant squabbles?

@Pooja C.

How long was the process?

@Shawna Hunter took me about 7 months to get the permit. My structural Engineering co wasn't that good so it took me long. Orelse it might have probably taken about 3 months I'd guess.. 

@Jerry M Cutrona try your best to factor the utility / energy costs into your monthly rent. or charge a flat fee once a month. don't over complicate it. you will love having the rental income. 

@Pooja C. WOW that's awesome! Other than the structural engineering team, was there other factors that caused 7 months to approve a permit for an ADU? Is your building going to be attached to deattached ?

Oh gosh!! 7 months for permits? I'm an ADU consultant in the South Bay. It is so important to have an architectural/engineering firms with specific experience building ADU's. I will be experiencing this first hand once I submit my plans. If anyone needs help or guidance reach out directly to me any time.

@Pavan Sandhu I would say that was the only reason I got delayed. My architectural design was set from the beginning but city had a lot of comments about structural. Its a detached ADU

I am looking into it.  Toured Pacific Manufacture Homes last Friday.  Good value but to look more like a home, it requires burying ~3.5' which may mean transporting a lot of dirt (maybe spread it over the lot).

I am thinking of adding the ADU to higher end areas. Places that SFR cost close to $1M and rent for over $5K. Add a 1200' ADU (buried manufactured home with many of the upgrades) that rents for over $3K.

>$8K rent for <$1.3M in class B+ to A area and the associated quality tenant pool.  I realize this ratio is not a good/great ratio in class B-/C+, but this is a good ratio in class A areas.

We also need to be creative on the financing because we are up against conventional max loan count limits.

Challenges.  

We are likely waiting for us to finish rebuilding two units that caught fire recently. The entire front of the building has to come down. It is a time suck and I am unsure we can handle rebuilding the 2 units and taking on a purchase with ADU add on concurrently.

@Pavan Sandhu

We are in the process of building. We just got out plans approved. We are waiting for structural and engineering plans to be approved as well. We are building in Valinda, Ca.

Build:

3 Bd 2 ba, 1200 sq.ft

@Dan Heuschele

Are you thinking about prefabricated homes?

To my understanding detached ADU can be up to 1200 sqft is their a limit on how many rooms/baths in can be? @Orlando Perez

@Brandon Carlson

Each county may have different limitations. Yes, we are building a detached.

I'm in LA county. 10 minutes away from Diamond Bar. I assume you and I would follow under the same limitations? @Orlando Perez

@Brandon Carlson

Oh yea. You will find if your submitting through LA City instead of LA county it will be much easier. Way quicker turn around. We had to submit through the county b/c where our project is located.

Originally posted by @Orlando Perez :

@Dan Heuschele

Are you thinking about prefabricated homes?

 Correct.  Their 1,198’ model they had starts at $76,104.  As it appears on the model lot it is $109,600.  They have another model on the lot that was 798’ that is $62,900 start but $88,500 as it appears on the lot.  The interiors as they are on the model lot are nice.  The exterior is alright.  I do not like the raised aspect but that is where the plumbing and venting is, so to not have it raised requires burying.  

@Dan Heuschele

That is interesting. How does that work? Does the company install and pull permits? Are there any conditions that need to be met? What is the name of the company?

@Dan Heuschele thanks for sharing these prices. How much do you anticipate having to spend in addition to the manufactured home? ie grading, utility hookup, slab, permits?

@Dan Heuschele if you can swing it, building the ADU while doing other construction on your property will save you a substantial amount of money by being able to leverage contractors already on site

@Pooja C.

I’m well past 1 year. Sooo frustrating.

Originally posted by @Saj S. :

@Dan Heuschele thanks for sharing these prices. How much do you anticipate having to spend in addition to the manufactured home? ie grading, utility hookup, slab, permits?

 The estimated range on this is real wide $50k to $150k not including pit set.   $300 to get a is it possible and a rough quote.  

They had 9 models (only 2 under 1200’) at the San Marcos location but that is a small percent of their total models.  The models on site basically are to show the concept and a range of finishes. 

Originally posted by @Parker Eberhard :

@Dan Heuschele if you can swing it, building the ADU while doing other construction on your property will save you a substantial amount of money by being able to leverage contractors already on site

 It is not the same property as the burnt units.  It is for an as yet to be purchased property likely in leucadia or poway.