Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: David A.

David A. has started 2 posts and replied 156 times.

Post: Inspector came out, rehab work is SHODDY, should I back out of the deal?

David A.Posted
  • Rental Property Investor
  • Los Angeles
  • Posts 157
  • Votes 175

Did the inspector actually identify outlets with a bootleg ground or is just suspected. They would need to pull the outlet out of the junction box to confirm this which most inspectors won’t do. If this is a valid issue it means whoever did the work actively tried to deceive the buyer into thinking the electrical was done correctly and I would question what else they covered up. There’s an interim easy fix but you could need a complete rewire in the future. No filter or place for a filter before he hvac system is also an easy fix but shows that whoever did the work was not a trained hvac professional. I would use this report to get a credit and plan for maintenance items to come up sooner rather than later due to installation error on the new work. 

Post: CA ADU build process and progress! Cost (labor and material) and process

David A.Posted
  • Rental Property Investor
  • Los Angeles
  • Posts 157
  • Votes 175
Quote from @Sebastian Marroquin:

I have been managing all the subs: I have some learning lessons - and do have all the numbers in our excel sheet. 

Currently we are at around $65k (I have to check my numbers and see if that is inclusive of building plans, engineering and city permit fees? I don't want to misquote on here) 

(the $65k: with a new driveway, One 20 foot block fence and new main sewer line that was broken and old (for the main home): aside from the ADU sewer line).

I say those 3 items are easily ($40k or more at retail prices) : and for us about $15k 


That's very impressive, both on cost and timeline. Sounds like you've done the hard work to find the right subs. I have a rental property in La Verne that would be perfect for this (complete with ancient clay sewer line due for a replacement). Can't wait to hear more about your experience with the garage conversion route. I took a break after my last ADU build but seeing this definitely has me thinking about my next project.

Post: CA ADU build progress pics, costs&anything else you want to know

David A.Posted
  • Rental Property Investor
  • Los Angeles
  • Posts 157
  • Votes 175
Quote from @Jackson Briggs:
Quote from @David A.:

Somewhat of a finale on this project but the tenant recently did some landscaping and I wanted to share this to show how with the right lot set-up you can still have some very nice private outdoor space for your ADU.


 Hi David, the final product looks great.

Would also be great to know the final numbers.

Your hard number spreadsheet last showed costs at I believe $130k. Seems like your GCs original number of $150/ft is going to be exceeded?

What are estimates looking like for your next project?

I have a few projects I'm running the numbers on, so I appreciate your transparency!


We definitely went over. Final cost including solar was around $225-250 PSF. Keep in mind its been over a year since this project was completed, so I would expect these cost to only climb from here. I also used a HELOC to fund this build and current rates on my lines are up from around 4% to 8% compared to what they were when I started this build.

No recent projects, the two homes I have that would be good candidates for ADUs have both had long terms tenants and I wouldn't do a new ADU build again with tenants in the main home. There was too many challenges trying to mix tenants with an active construction site in the backyard.

Post: What are you building costs for ADU's?

David A.Posted
  • Rental Property Investor
  • Los Angeles
  • Posts 157
  • Votes 175
Quote from @Brad S.:
Quote from @David A.:

Hey Brad,

As a recent data point, I've got friend who's currently doing a ~650 SF ADU garage conversion in the valley for 165k not including finishes.

I’d be all for a way to reduce the build cost but a reduced time to build would also be a huge advantage. 

My home down in Encinitas is manufactured and would make a perfect ADU so this might be one avenue that could work. The coastal cities are still approving new manufactured units (seismic be dammed) so there has to be a way to have them meet the current requirements.


And there you are ! :)  I was just talking about you, somewhere above.  :) If you don't mind sharing, what was your final costs on your ADU you showed me?

Thanks for the datapoint David. So, that's a little above $250/sf, just for a conversion! Even with the small footprint, that seems high, but typical these days. I will definitely let you know as I get further in my research and projects. I have 2 projects in planning right now, which I plan on using 2 different building system for, and I'll see what those #'s work out to be. I'm pretty confident I can get the per sf cost significantly down, but we'll see what the real #'s come out to be. 

My partner and I are talking with a prefab company who is in process of bringing their product to the US, and per them, they are currently able to be around $110-$140/sf for the building (including finishes, cabinets, etc) , not including site prep, etc. It is also steel based framing, so no wood and better fire resistance. We may end up rep'ing them in CA, they are just now trying to get their factory up and running.


Just say the word ADU three times into a mirror and I appear ;)

Its been some time but I think I ended up around 160k not including solar. Steel framing would also help with termite issues. Putting your appraiser hat on how do you think prefab would compare to traditional stick built or does it not really matter since ADUs don't appraise great in the first place? Let me know how it goes on your projects, I've got a couple lots that are just waiting for an ADU.

Post: What are you building costs for ADU's?

David A.Posted
  • Rental Property Investor
  • Los Angeles
  • Posts 157
  • Votes 175

Hey Brad,

As a recent data point, I've got friend who's currently doing a ~650 SF ADU garage conversion in the valley for 165k not including finishes.

I’d be all for a way to reduce the build cost but a reduced time to build would also be a huge advantage. 

My home down in Encinitas is manufactured and would make a perfect ADU so this might be one avenue that could work. The coastal cities are still approving new manufactured units (seismic be dammed) so there has to be a way to have them meet the current requirements.


Post: Anyone touching these types of homes?

David A.Posted
  • Rental Property Investor
  • Los Angeles
  • Posts 157
  • Votes 175
Quote from @Jay Shindledecker:
Quote from @David A.:
Quote from @Jay Shindledecker:

https://www.realtor.com/reales...

The eyesore of the neighborhood, surrounded by $1M+ homes...

Does anyone here do extensive renovations on properties like this one?


Hey Jay, I do. The cities off the 210 from Glendora to Claremont is my sweet spot. I think this will close above asking and with needing a new roof, mechanical, electrical, plumbing, int/ext paint, termite repairs etc. it wouldn't be worth it for me to flip given the time and capital needed. Rather, I focus on turning these into buy and hold rentals and let appreciation do its thing in the long run. In 5+ years I don't think you would regret owning a 3 bed 2 bath home in a nice safe neighborhood with excellent schools. It's been awhile, but here's the last home like this I bought which needed a few less repairs, had better ADU potential and (barely) qualified for a 30 year mortgage - https://www.redfin.com/CA/La-V...I can share the after photos if there's any interest in this. 

You are on the right track, just keep your search open for something equally dated in great locations, just with a little less deferred maintenance.   


Leave one or two out there for me David! 

DM me. Let’s meet up sometime for coffee if you’re in the area..

Don’t worry, there’s plenty to go around as these come up on a semi-regular basis. I’ve been able to average 1-2 a year. I’ll send you a DM.

Post: Anyone touching these types of homes?

David A.Posted
  • Rental Property Investor
  • Los Angeles
  • Posts 157
  • Votes 175
Quote from @Jay Shindledecker:

https://www.realtor.com/reales...

The eyesore of the neighborhood, surrounded by $1M+ homes...

Does anyone here do extensive renovations on properties like this one?


Hey Jay, I do. The cities off the 210 from Glendora to Claremont is my sweet spot. I think this will close above asking and with needing a new roof, mechanical, electrical, plumbing, int/ext paint, termite repairs etc. it wouldn't be worth it for me to flip given the time and capital needed. Rather, I focus on turning these into buy and hold rentals and let appreciation do its thing in the long run. In 5+ years I don't think you would regret owning a 3 bed 2 bath home in a nice safe neighborhood with excellent schools. It's been awhile, but here's the last home like this I bought which needed a few less repairs, had better ADU potential and (barely) qualified for a 30 year mortgage - https://www.redfin.com/CA/La-V...I can share the after photos if there's any interest in this. 

You are on the right track, just keep your search open for something equally dated in great locations, just with a little less deferred maintenance.   

Post: CA ADU build progress pics, costs&anything else you want to know

David A.Posted
  • Rental Property Investor
  • Los Angeles
  • Posts 157
  • Votes 175

Somewhat of a finale on this project but the tenant recently did some landscaping and I wanted to share this to show how with the right lot set-up you can still have some very nice private outdoor space for your ADU.

Post: CA ADU build progress pics, costs&anything else you want to know

David A.Posted
  • Rental Property Investor
  • Los Angeles
  • Posts 157
  • Votes 175
Quote from @Ana Perez:

@David A. I just found this post and it's so detailed and very precise. My husband and I have been planning to build an ADU for the last 4 years. We submitted plans to the city of Burbank which is where we live and they send back for review and that's when everything stopped and Covid played a part on it. We want to restart the process now but with a different size/project. We have a pool and we are contemplating on getting rid of it and build a bigger unit on it. If you have any suggestions or referrals can you please share with me, we don't have reliable constructors. Our main house is 1250 and we wanted to do a 1000 sq ADU without a headache of a pool. Thank you so much! Your project looks excellent

I agree with Dan, if you can build around it and avoid the cost of removing the pool I would go that route. You would be surprised how much a good designer / architect can fit into a small square footage and still have a very functional ADU. I have a pool a my home in Pasadena and hate the thing, but its becoming a popular amenity again with many of my neighbors spending 100k+ to add this feature. 

Sorry I don't have any recommendation for a reliable contractor at this time. I would wait on this step until you have permits approved since things can change pretty quickly with contractors.  

Post: CA ADU build progress pics, costs&anything else you want to know

David A.Posted
  • Rental Property Investor
  • Los Angeles
  • Posts 157
  • Votes 175
Quote from @Patrick Fidell:

Hello, i have a garage conversion ADU in progress now and the County is asking for $9k in permit fees. We are in LA county. I see that yours was $2650. I am wondering if you have any insite on how ours could be so much higher?


 Hey Patrick, the $2650 number you are referencing was just the initial building permit fee. There was additional permit fees mentioned in the later posts for the electrical permit, plumbing permit, etc. so it sounds like you are just getting these all upfront. 9k in permit fees sounds reasonable to me.