All Forum Posts by: Brian Larson

@Akhil Tandon - We chose the total SQFT for 2 reasons:

(1) I still wanted a usable backyard because I live there.  Also, I figured that opens up the buyer pool if I sell to another owner-occupier.

(2) The size limit at the time in San Jose was 700 SQFT based on our small lot size.  The local city rules have changed a lot since 2019, when we first submitted plans.

Additionally, we considered exterior stairs but I ultimately pushed for interior stairs because I wanted them to be more structural and not ever need to be replaced.  Also, it is my understanding that stairs cannot be in the setback zone but talk to some local experts like @Adam Mayberry and confirm.

Lastly, I'll add some photos in a bit.

@Dan H. -- As usual, I agree with you.  The value-add and construction costs do not usually balance.  I wish they did.  In my personal situation, the appraiser on my refinance gave this structure a $190K valuation in his report.  I spent around $350K (design, fees, and construction) so I was not very happy.@Chen Zhou

@Chen Zhou -- Your assumption about "almost immediately" adding value from the construction of an ADU are not indicative of most people's experiences.

Can it be done? - Sure.

Did you accomplish this? - Sounds like you did.

Is it repeatable for the average homeowner with zero construction background or experience? - Probably not.

Hi @Mel Adams.  Welcome to the forums.  You might try reposting into a local forum for KC to get a better response.  I initially found you because of the key word flags I have set for "Sacramento".

I might also suggest that you spell out Kansas City to get a better response too.  Good luck.

Try looking at 285 E Saint James as a sample in San Jose. I had a client look at this property with so kind of TIC Agreement about 2 years ago. As you mention, they are very, very uncommon. It might be a good model to check on though.

@Thinh Duong -- In my opinion, you are right.  How can they give you a stricter setback that the newly built structures?

Did they give you reasoning for this large setback?  I would ask them to explain it further because there is probably a weak rationale for this request.

What is your setback?  5ft?  10ft?  Whatever it is, I'd appeal your case to a supervisor.

@Thinh Duong - Which setbacks are you referring to here in SJ? The front setback? A 20 foot setback doesn't make a lot of sense based on the current ADU setbacks, if you were to build new, are only 3 feet.  https://www.sanjoseca.gov/home...   

@Chen Zhou - Thanks for the recommendation. However, appraisal value has nothing to do with your lender. You may have had a great experience with figure.com but implying you got a “good” appraisal from them is fundamentally wrong.  Lenders and appraisers are intentionally disconnected to prevent fraud.

@Chen Zhou JADUs are only allowed with owner occupancy.

I will echo @Dan H.here. I recently built a detached 1 bedroom ADU above a 2 car garage in San Jose. It had a horrible return. For the construction cost of $330K, the appraiser gave it a value of $190K. It was a total joke.

In your situation, it may be cheap to convert the space (mine was a brand-new structure).  But again, I think you would be surprised at these returns.  They are generally not very good.

@Rich M. - I went with a HELCO for my project.  I liked the flexibility to pay for what I used as I used it.  It was a good idea too because it took well over a year to get an approved plan and start building.  Let me know what you choose.  I'm always curious to see.

@Hobie Day - Interested to hear more about this purchase. Was this on the MLS? Or was this arranged off-market? Also, are you using BP Calculator to analyze the property? Or a custom calculator with the Greene Team?