Accessory dwelling unit ADU
Riverside, CA · Member since 2018 · 12 posts · 3 votes
Accessory dwelling unit ADU
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Nabil SuleimanBusiness Member
Real Estate Agent · Los Angeles, CA · Member since 2016 · 596 posts · 299 votesHi Joel, I've completed 3 in La City, and yes the prices can range widely depending on the people quoting. Often times the "you get what you pay for," mantra can relate to construction as well (not always) but cheaper doesn't always get you the result (usually in time) that you would hope for. LA has been approving ADU's for a few years now and as we learn they (the city) learns with us. The state has passed a decent amount of new laws in regards to ADU's that took effect Jan 2020. Each city has their feelings towards this rule (aka Pasadena is looking to sue the state vs La City is adapting the rules). But depending on home size/ lot size, some of you may be able to build a JR ADU and an ADU on your property turning your single family home into a triplex. There is a lot of opportunity for home owners and investors to create housing as well as a form of income.
Atlas Elm | Nabil Suleiman4.47 Reviews
28 Replies
- Developer · Sacramento, CA · Member since 2016 · 464 posts · 143 votes5y
How's the ADU doing these days?
Originally posted by @German E.:Hi, I have just finished building an ADU in Corona CA, and can tell you my experience was quite a bit more work than I expected. I hired a planner who made apparently some rough architectural plans, but the city had very high expectations at every step, basically as if I was building a fully independent house. Inspectors were at times unsure just what rules to apply to this home, and they just went for the more stringent ones every time. The cost was about $150/sf for 750sf 2B1B, but I was my own GC and spent a LOT of time working on this which took the better part of a year.
I have just had the property appraised and was disappointed to see that appraisers don't put a lot of value on ADUs as compared to multi-family zoned properties. You should do your due diligence to find out what the expected final value will be, and how much time and money it will likely cost you.
The property does cash flow quite nicely now. Since ADUs are underpriced in the market, the better strategy if you're starting from scratch is to buy a home with an existing ADU and skip all the work building it. If you do decide to build, I suggest to stick to a basic setup that uses existing sf such as a converted garage. Good luck!
- Developer · Sacramento, CA · Member since 2016 · 464 posts · 143 votes5y
Might be the hardest thing you've ever done.Construction project have many moving parts. Would be good to have a trusted GC you can lien on. Have you begun the build out yet?
Originally posted by @Joel Becerra:Originally posted by @German E.:
Hi, I have just finished building an ADU in Corona CA, and can tell you my experience was quite a bit more work than I expected. I hired a planner who made apparently some rough architectural plans, but the city had very high expectations at every step, basically as if I was building a fully independent house. Inspectors were at times unsure just what rules to apply to this home, and they just went for the more stringent ones every time. The cost was about $150/sf for 750sf 2B1B, but I was my own GC and spent a LOT of time working on this which took the better part of a year.
I have just had the property appraised and was disappointed to see that appraisers don't put a lot of value on ADUs as compared to multi-family zoned properties. You should do your due diligence to find out what the expected final value will be, and how much time and money it will likely cost you.
The property does cash flow quite nicely now. Since ADUs are underpriced in the market, the better strategy if you're starting from scratch is to buy a home with an existing ADU and skip all the work building it. If you do decide to build, I suggest to stick to a basic setup that uses existing sf such as a converted garage. Good luck!
Well, I,m glad you made it through it all! For me I am stepping two feet in. Ideally I would have loved to convert a garage and be done with it, but the way all the structured sit on the property, it just wasn't feasible. I figure that my rent price on the new unit will be higher if the units are detached and more space/privacy is there. I have funding secured and plans are in the approval process with the city. How did you manage being your own GC? Are you in that line of work, or do you work full time somewhere elsewhere? I am planning on handling myself as well. How was you luck with the subs? Any to recommend? It will come greatly appreciated.
Yes, even though I know it wont be the easiest thing I've ever done I wanted a challenge and it will cashflow nicely as well :)
- Member since 2018 · 13 posts · 4 votes2y
This calc might help, also does a basic rental income calc. Attached, conversion, detached numbers. Modular or stick. Not real estimating or underwriting but a start, the numbers smell like a decent range https://www.dwellito.com/adu-cost-calculator I am not affiliated
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