Building / converting into ADU’s / granny flat / in law suite

38 Replies

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. 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.

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.

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 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

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.  

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