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Rehabbing & House Flipping

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Chris Gawlik
  • Investor
  • Yucaipa, CA
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ADU Accesory Dwelling Units In CA?

Chris Gawlik
  • Investor
  • Yucaipa, CA
Posted Jul 18 2020, 15:28

I was wondering if anyone had any experience or was planning on building or converting existing living space into an extra unit in California, or any state for that matter. The reason I specifically mentioned CA is because the laws have been updated recently state wide. These laws are because of a housing shortage in CA and can be pretty beneficial to an investor. Would love to hear your story if your are currently building one or even if your thinking of building one. Thanks everyone.

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Brian G.
  • Rental Property Investor
  • Los Angeles, CA
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Brian G.
  • Rental Property Investor
  • Los Angeles, CA
Replied Jul 19 2020, 15:59
Originally posted by @Chris Gawlik:

I was wondering if anyone had any experience or was planning on building or converting existing living space into an extra unit in California, or any state for that matter. The reason I specifically mentioned CA is because the laws have been updated recently state wide. These laws are because of a housing shortage in CA and can be pretty beneficial to an investor. Would love to hear your story if your are currently building one or even if your thinking of building one. Thanks everyone.

Bump. This is a great question. I'm confident others on BP will speak into this. 

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Barbie Steele
  • Real Estate Agent
  • FRESNO, CA
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Barbie Steele
  • Real Estate Agent
  • FRESNO, CA
Replied Jul 21 2020, 21:52

A garage conversion would be the fastest way to get an extra unit up and running. In Fresno, an attached garage conversion would count as the JADU, leaving you the ability to either construct a stick built detached ADU in the backyard, or purchase a Tiny Home on Wheels (accepted by most major municipalities in CA now) and have that count as your ADU. I know of a Tiny Home builder who sells complete turn key homes for $25,000 with about a $5500 delivery fee.

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Chris Gawlik
  • Investor
  • Yucaipa, CA
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Chris Gawlik
  • Investor
  • Yucaipa, CA
Replied Jul 23 2020, 07:43

@Barbie Steele

would you happen to the tiny builders company info? thnx

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Replied Jul 23 2020, 08:00

I am considering a garage conversion on a property that already has a duplex, which was not permissible until the new law went into effect on Jan. 1. Costs may be lower in Yucaipa but the first two estimates I got were upwards of $100k for a very small unit (300 sq ft.). However, in LA that could still rent for $1400-$1600, which would be a great return on investment. I hit pause on my plans during the pandemic because I'm worried about trying to finance that large an amount and prefer to hold on to cash. So how much would it cost to build, how much rent would you get, and how would you pay for it are the main questions to ask. In addition, if you're living on the same property, how much privacy will you or your tenants have and how can you maximize that with a private yard area, etc.

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Darius Ogloza
  • Investor
  • Marin County California
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Darius Ogloza
  • Investor
  • Marin County California
Replied Jul 23 2020, 08:06

We are considering building an ADU in a carport area on a SFR rental in Mill Valley CA. About 480 square feet. May require us to set up a carport elsewhere on the lot - 1/4 acre so no issue. Very preliminary stages. Hope to break ground in 2021.

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Chris Gawlik
  • Investor
  • Yucaipa, CA
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Chris Gawlik
  • Investor
  • Yucaipa, CA
Replied Jul 23 2020, 17:41

@Pat Saperstein

I know how you feel about holding on to cash. I feel the same way about it. Please shoot me a message or give me an update if you decide to build your ADU I am very interested in the process And want to learn as much as I can about them before I start building them. I will actually be the owner builder and building them myself.

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Chris Gawlik
  • Investor
  • Yucaipa, CA
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Chris Gawlik
  • Investor
  • Yucaipa, CA
Replied Jul 23 2020, 17:41

@Darius Ogloza

I don't think you will have to build a new carport with the new law but that depends on your city but Im pretty sure that the new law will not make you add additional parking if you're going to put in an ADU

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Barbie Steele
  • Real Estate Agent
  • FRESNO, CA
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Barbie Steele
  • Real Estate Agent
  • FRESNO, CA
Replied Jul 23 2020, 18:30

@Chris Gawlik I messaged you

And you're right about not having to add additional parking. The latest State ADU laws that went into effect on Jan 1st removed this requirement.