Accessory dwelling unit ADU

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Accessory dwelling unit ADU

Joel Becerra
Riverside, CA · Member since 2018 · 12 posts · 3 votes

Has anybody have any experience with building their own ADU unit? Besides getting all the utilities set up and in place I feel like a majority of the finishing I can handle myself with the help of friends/family. Just wondering if anyone had taken on the project and how much money was saved. Quotes have been anywhere from $60K all the way to $150K.

Side note, there is an ADU expo held by a company called Maxable on February 29th 2020 in LA. I was thinking about attending to get more information and meet industry leaders.

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Nabil SuleimanBusiness Member
Real Estate Agent · Los Angeles, CA · Member since 2016 · 596 posts · 299 votes
6y

@Joel Becerra

Hi 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.

[email protected]661-904-1725
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  • David Frandsen
    Real Estate Agent · San Diego, CA · Member since 2014 · 205 posts · 123 votes
    6y

    @Joel Becerra I have not built one but am very interested in this. I would like to rent out an ADU to offset a mortgage payment. Thanks for sharing about the event. That could be cool.

    One thing i'm still not clear on is if every city is different with the laws. Isn't it a State law and the rules are all the same? 

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  • Joel Becerra
    OP
    Riverside, CA · Member since 2018 · 12 posts · 3 votes
    6y

    @David Frandsen

    Yes, many important specifics about building an ADU unit has changed in favor of homeowners. These new laws are statewide but are fairly new, so it may take some time for the new verbiage to trickle down through the city level.

    I figured instead of buying a new property I can just put an additional unit on one of my existing properties and pay it off in a few years to start cash flowing.

    1Reply
  • David Frandsen
    Real Estate Agent · San Diego, CA · Member since 2014 · 205 posts · 123 votes
    6y

    @Joel Becerra Yeah. Seems like converting something existing would be way more cost efficient. 

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  • Luis Castellon
    Member since 2018 · 21 posts · 12 votes
    6y

    Hey Joel I've done 6 ADU personally on my properties really easy and can be done under 50k less if your handy I'm actually gonna start one soon currently waiting on blue prints. But if you want to come by check it out let me know.

    1Reply
  • Joel Becerra
    OP
    Riverside, CA · Member since 2018 · 12 posts · 3 votes
    6y

    @Luis Castellon

    Interesting! Where abouts do you have these properties? I’m in SoCal.

    0Reply
  • Luis Castellon
    Member since 2018 · 21 posts · 12 votes
    6y

    In Los Angeles area San Fernando valley 

    1Reply
  • Joshua Duvall
    Investor · Granada Hills, CA · Member since 2019 · 45 posts · 17 votes
    6y

    Hey @Luis Castellon, I'm in the SFV too. I wouldn't mind coming by and checking out your ADUs and possibly picking your brain over the details. I can swing a hammer too....

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  • Luis Castellon
    Member since 2018 · 21 posts · 12 votes
    6y

    Hey @Joshua Duvall send me your number I just finished one you can come take a look of the finish work or you can come by so you can see from start to finish. 

    1Reply
  • Nabil SuleimanBusiness Member
    Real Estate Agent · Los Angeles, CA · Member since 2016 · 596 posts · 299 votes
    6y

    @Joel Becerra

    Hi 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.

    [email protected]661-904-1725
    Atlas Elm | Nabil Suleiman4.47 Reviews
    WebsiteView Page
    2Reply
  • Jonathan Taylor
    Lender · Los Angeles, CA · Member since 2017 · 916 posts · 647 votes
    6y

    @Joel Becerra

    I’m in the process of converting my garage and unfortunately it not as simple as having friends help. All ADUs still need to be title 24 compliant, licensed architecture plans and subbed out work which need to be completed by licensed tradesman. This is for electrical, plumbing and energy efficiency. Electricians need to fill out a CF-2R for any grid work they do. Any HVAC or heating needs to be compliant by licensed folks and any ground up your builds as well. Same with windows and insulation.

    Building out kitchens and laying down flooring don’t need to be licensed but there’s a lot of paperwork now even though the laws have loosened.

    Caveat is, and I’m sure other Angelico’s can relate, is that you get different answers from different people depending on what day or the week it is or how much coffee they had or if they are seasons behind on game of thrones and you just happen to catch them after they saw the red wedding....

    Short answer, it’s more doable now, long answer, you are inviting inspectors to knit pick your property which can cause you months of delays chasing codes that they can’t explain.

    Good luck.

    2Reply
  • David Frandsen
    Real Estate Agent · San Diego, CA · Member since 2014 · 205 posts · 123 votes
    6y

    @Luis Castellon @Nabil Suleiman Are these stick built? What kind of build costs are you finding? Has anybody looked into a pre-fab option to drop onto a foundation? 

    Thanks for all the info so far. I'm very interested in learning more about this. My hold up is getting a whole picture on the cost. Including permitting. 

    1Reply
  • Nabil SuleimanBusiness Member
    Real Estate Agent · Los Angeles, CA · Member since 2016 · 596 posts · 299 votes
    6y

    @David Frandsen

    Hi David. 
    actually doing both stick and pre fab. If you want to chat more in detail about what you are looking to do I can help paint a better picture for you on the pros and cons for both. We can also talk permitting, architecture, engineering etc. you should absolutely have the whole picture before jumping in. 

    [email protected]661-904-1725
    Atlas Elm | Nabil Suleiman4.47 Reviews
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    2Reply
  • Luis Castellon
    Member since 2018 · 21 posts · 12 votes
    6y

    @David Frandsen 

    Goodmorning, Well there's different types of ADU I've done both attached and detached garage conversions and brand new ground up new ADU. I've done as small as 360square to 1200square feet, but never prefab. As far as price range I'm around 30k once finished including permits blueprints fee, for a small attached garage conversion probably can be done for less money if you do some of the work and shop for deals on materials.

    2Reply
  • David Frandsen
    Real Estate Agent · San Diego, CA · Member since 2014 · 205 posts · 123 votes
    6y

    @Luis Castellon Thanks for the info. 

    1Reply
  • Joel Becerra
    OP
    Riverside, CA · Member since 2018 · 12 posts · 3 votes
    6y

    @Luis Castellon

    I may take you up on that offer, the more we know the better. Available on weekends?

    0Reply
  • Joel Becerra
    OP
    Riverside, CA · Member since 2018 · 12 posts · 3 votes
    6y

    @Nabil Suleiman

    Thanks for the input. First I will create a detached ADU, then hopefully I will be able to convert my detached garage. I'm still waiting on a clear answer about that. Single family turned triplex !!!

    0Reply
  • Joel Becerra
    OP
    Riverside, CA · Member since 2018 · 12 posts · 3 votes
    6y

    @Jonathan Taylor thanks Jonathan. I didn't mean to oversimplify the construction on the ADU. Yes I will need the pros for the official things, but painting floors, or whatever else seems "easy" I will tackle. Do you guys take the plans start to finish or do you let the GC hands it all? I inquired with a company called Housable, they start at property checks and can help move people through the design and build. Ever heard of it?

    0Reply
  • Joel Becerra
    OP
    Riverside, CA · Member since 2018 · 12 posts · 3 votes
    6y

    @Luis Castellon

    This is the kind of info I need to find out. We should talk more if you have time. Interested on your approach to executing these.

    0Reply
  • Jonathan Taylor
    Lender · Los Angeles, CA · Member since 2017 · 916 posts · 647 votes
    6y

    @Joel Becerra I looked into housable but my project is too small to justify a GC. Im subbing out licensed tradesman fornthe permitting compliance but will let you know how it goes. I got my list of permits needed from my title 24 report and I need 8 permits for a 290 sq ft space.... LA may have relaxed the rules but not the time-wasting redundant paperwork/headaches.

    1Reply
  • Joel Becerra
    OP
    Riverside, CA · Member since 2018 · 12 posts · 3 votes
    6y

    @Jonathan Taylor

    Luckily out in the Inland Empire my house lays is a somewhat new city “ City of Jurupa Valley” and I hear they are pretty easy going with approvals and don’t take long to approve builds because it is such a small town. Well I hope your addition goes smooth best of luck! Let me know how it goes!

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    6y
    Originally posted by @Joel Becerra:

    @Nabil Suleiman

    Thanks for the input. First I will create a detached ADU, then hopefully I will be able to convert my detached garage. I'm still waiting on a clear answer about that. Single family turned triplex !!!

    If your property is single family in Los Angeles (LARD1), then you can't have two detached ADU units, only one. You may have a junior ADU (JADU) but it must be attached to the primary unit and no more than 500 total SF. The new ADU laws are State side and not city or county, if a city attempts to not honor the state rules, they can be sued by the state. Las Angeles is cooperating and adopting the new rules. Each city MUST approve your submitted plans within 60 days or else the plans as submitted are considered passed and final.

    Converting existing garages into ADU units is the most cost effective means and if your play is to rent out, you can recoup your investment quite rapidly depending on your local rental rates.

    Costs to build these out will depend on utility connections, length of those runs, finishes, and if you are converting existing, adding on to existing, or building new. More often than not, the investor can recoup the investment inside of 4 years which is a healthy return and what makes ADU additions a very viable strategy here now as opposed to buying another property.

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  • Andrew Aladjadjian
    Rental Property Investor · Los Angeles, CA · Member since 2019 · 49 posts · 17 votes
    6y
    Originally posted by @Joel Becerra:

    @Nabil Suleiman

    Thanks for the input. First I will create a detached ADU, then hopefully I will be able to convert my detached garage. I'm still waiting on a clear answer about that. Single family turned triplex !!!

     Hi Joel,

    This plan will not work. You are allowed one ADU and one JADU. The JADU MUST be attached to either the main dwelling unit or accessory unit. Since your garage is detached you would need to either convert that as your ADU or build a new larger ADU and keep your garage as-is. The only way you can then add the JADU is to convert part of your main dwelling into a permitted JADU. You may also first request to expand your main dwelling, and simultaneously request to permit the addition as a JADU, then create the barrier within the home to split the units. Beware, if you request to expand for the sole purpose of a JADU you only are only allowed to build 150 sqft (ingress, outgress), but if you request to permit an expansion of your home, then you are allowed to additionally request to split and permit the addition as a JADU. Your construction would be open within the confines of the home but then you can add the barrier to split into a unit.

    Hope this helps!

    1Reply
  • Jay Dimacali
    Specialist · Granada Hills, CA · Member since 2013 · 73 posts · 21 votes
    6y

    @Luis Castellon HI Luis. I saw your answers about ADU's and I'm in the SFV myself. Could we talk about what you have to go through with the city? I'll PM you.

    0Reply
  • German E.
    Investor · Orange County, CA · Member since 2018 · 41 posts · 16 votes
    6y

    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!

    1Reply
  • Joel Becerra
    OP
    Riverside, CA · Member since 2018 · 12 posts · 3 votes
    6y
    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 :)

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