Hello

I am nearing the completion of two Family + Basement ADU homes. (This home was constructed in 2023, making it relatively new-build.)

1st Floor:

- 4-bedroom room (Currently rented out, $2800)

2nd Floor:

- 4-bedroom room(Currently rented out, $2800)

Basement: ADU, comprising three bedrooms and a bathroom, but lacking a kitchen. (A Certificate of Occupancy has been legally obtained, indicating its attachment to the first floor. Consequently, separate rent is currently not permitted.)

- The current owner resides there. The owner indicates that the market rent for this 3-bedroom site in the basement is approximately $2,200.

The basement ADU is legally constructed, and all associated bills are attached to the 1st Floor. The basement has three bedrooms and a bathroom but lacks a kitchen.

A brief overview of the current design meets the approval criteria (including egress).

I contacted a local contractor, who informed me that if I wish to reduce costs, I can install an electric oven instead of a gas oven.

My question is whether the cost will vary, and what is the likelihood of obtaining approval from the city.

In the event of the most unfavorable scenario, I anticipate renting out a one-floor unit and a basement ADU as a single rental unit. This would provide a total of seven bedrooms and 2,600 square feet. I estimate that the rental income could range from $4,000 to $4,500. However, I am uncertain whether there is a demand for a seven-bedroom unit. Alternatively, if there are other rental options available, I would appreciate your guidance in exploring those possibilities.

My local contractor has stated that the home appears satisfactory, but the conversion from two units to three units may cost up to $200,000. I would like to ascertain the worst-case scenario and explore potential strategies to avoid such a situation.

Thank you!!