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Rehabbing & House Flipping

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Angela Zaitz
  • New to Real Estate
  • California
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Converting Bonus room to studio ADU

Angela Zaitz
  • New to Real Estate
  • California
Posted May 17 2023, 16:08

Thinking about buying a small home that has a large 300sq ft bonus room and converting it into studio. I would need to have a kitchenette and small bath/shower added. I would live in studio and rent out main home. 
The bonus room is close to the kitchen so water would be close. But I wouldn’t want bathroom next to kitchen, that doesn’t seem like a good plan.

Is there anything a newbie may miss on a project like this? I will not be rehabbing myself, but hiring contractor and requiring them to get permits.

Any idea how much it would cost? And besides getting multiple estimates, any way  to get a ballpark estimate ahead for planning purposes? I don’t think I can get a contractor out soon enough to have info before needing to make offer  homes are going like hotcakes here and contractors are backed up and I don’t have a relationship with one  

This is my first project and investment property. I know I would need to factor in utilities into the rent. anything else I need to consider ? 
Thanks in advance for your feedback and sharing your expertise!

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Bruce Woodruff
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Bruce Woodruff
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Replied May 17 2023, 16:48

I used to be a SD County builder, so I can take a guess for you. Your main expenses might be sewer, water nearby is one thing, but you will need a minimum 3 inch line for the waste from toilet. Also check to see if the current electrical panel will handle another residence. It should be at least 150 Amps.

In SD, you will be looking at $250 -300  SF, so you may get this done under $100k. Not counting plans/permits/engineering/etc.....

And that depends on the existing structure and slab being up to current code. That could be a big if. Do not assume that you can just convert this 'bonus room' into living space...was it even permitted when built? I'd bet not. Which could mean huge issues for you. Does your plan work if you cannot live there in the bonus room?

Hope that fits your budget! Let me know if you have any further questions.

PS - It would sure be nice to at least talk to a local GC before purchasing....