All Forum Posts by: Denette Rael

You're welcome Tanya. That would be great! Send me a personal message with your phone number and we can set something up!

Hello Tanya, Congratulations on your first flip!!! I'd say top things to keep in mind would be  Setting a clear budget Including; purchase price, repairs, holding costs, closing costs, and your profit margin. Follow the 70% rule; Buy price = (after repair value *70%) minus repair cost (this gives yo a safe margin. Don't overestimate AVR (after repair value) Use comps (similar, recently sold homes in the same area) within 0.5–1 mile, same size & style. Get quotes for needed repairs before you make the purchase this will help you determine if it's even worth your time. I live in Los Angeles would love to connect with you!

👷🏻‍♀️ I'm Denette a woman-owned and operated, licensed general contractor in Los Angeles with over a decade of hands-on experience helping homeowners build ADUs, convert garages, and remodel their dream homes. I’m passionate about high-quality work, clear communication, and making sure every client feels confident through the entire construction process.

Planning & Design

Budget & Financing

 Construction Details

Legal & Permits

Energy Efficiency & Systems

Interior & Finishes

Resale and Long-Term Value

Hi I'm a general contractor and the price range varies based on size and materials, unless someone is able to take measurements and have a list of exact materials you'll be using they won't be able to give you true pricing. Depending on your location there's a prefabricated cabinet and countertop store in Van Nuys that has the best pricing I've found in all LA, and they also provide a 2 & 3D design when you buy from them. Stone and Cabinet Supply. The cost of the cabinets also depends on futures like pull-out trash can, lazy Susan, spice racks, pull out drawers, and hardware, but generally start at $200+ for a prefaced shaker. 

Hello Dan, 

Thanks for the reply much appreciated. I was trying to keep it short and simple, and I agree with you on most things, but I must beg to differ when it comes to homeowners. 

    High Rental Income Potential;

In LA County, you can expect average ADU rents around $2,050–$2,550 per month for a one- bedroom unit.

1. On a construction cost of roughly $150,000–$220,000, that translates to annual gross rents of $24,600–$30,600, or a 7–15% cash-on-cash return before financing.
2. Strong Property-Value Uplift
   
3. • Homes with an ADU in Los Angeles often sell for about 35% more than comparable properties without one.
   • For a $800,000 home, that's roughly a $280,000 increase in appraised value after adding an ADU.
4. Solid Cash-on-Cash Returns
   • Even paying cash, you can net 10%+ annual returns on your build cost from rental income alone.
   • And financing the project can still leave you with an $8,000–$10,000 annual net gain after mortgage costs.
5. Resilient Demand & Market Dynamics
   • LA’s tight housing market keeps vacancy rates low and rents high, supporting steady occupancy.
   • Regulatory reforms have streamlined ADU permitting, cutting wait times and softening approval hurdles.
6. Tax & Incentive Benefits
   • You can deduct mortgage interest and depreciation on the ADU, improving after-tax returns.
   • Energy-efficiency or solar incentives can further lower net build costs.

Things to keep in mind if you already own a property and can't afford to buy another.

• Upfront Costs & Timeline: Expect 9–12 months and $150K–$250K all-in.
• Permitting & Utility Upgrades: May require separate electrical sub-panel, meter, or sewer hookups.
• Maintenance & Management: Factor in insurance, taxes, and occasional repairs.

In Los Angeles's high-rent, low-vacancy environment, an ADU typically pays for itself in 6–10 years through combined rental income and increased resale value—making it one of the most compelling "home-owner" investments today. If we're talking about a "real estate" investor the obvious better investment is "New build" If you're experienced or want to maximize net worth through development, new builds offer more upside.

Thanks again!

Good luck to you too.