All Forum Posts by: Whitney Hill

Make sure to get an all-in quote, including revisions and managing the permitting process with the city. Also, keep in mind that about 90 to 94% of your costs on the ADU are going to be for the build, not the design. Which means it's super important to take a draft version of your plans out for a bid to make sure your draftsman is not missing anything that will end up being expensive. For example, if you're going to rent this out, make sure you can get standard size tub inserts, the window sizes are standard and available, no overly complex foundation, make sure he's using trusses, etc. Etc. All of those things will mean major cost savings in the build.

Just chiming in on multiple units. These are the situations in which you may add multiple ADUs:

-Multifamily property (incl duplexes) in CA -- up to two detached ADUs, plus unlimited conversions of existing non-habitable space
-City of San Diego -- outside transit priority area (TPA), you can build one additional affordable ADU and one unrestricted ADU (in addition to the 1 ADU on single family or 2 ADUs on multifamily). You are right that in TPAs there is no upper limit on these bonus ADUs, so long as you conform to the underlying zoning on FAR, lot coverage etc.

Unfortunately I don't have experience with Procore... I can tell you that 4 out of 4 of the medium sized residential contractors I have spoken with are on BT... At this point it's almost a joke bc I come across so many. One went away from it to try and build their own system and came back to BT. The co-construct acquisition has also given BT more scale and I've noticed higher speed of innovation

The quote at $120/sqft seems low. Even the very cheapest manufactured options are going to be much higher than that when you account for all cost factors (in case of manufactured: finishes, transportation, prepping pad, utilities). We have an extensive blog article on our site about pre-fab ADUs, including differences in the various build types (I can't post the link here or my post will get deleted). Also full pricing info with all cost buckets broken out (plans, permitting, sitework, vertical build, solar, additional work like utility upgrades)

Looking to add more income to your rental property portfolio? Accessory dwelling units (ADUs) are easier than ever to add to single and multi-family properties. Join us this Thursday July 22nd at 5:30PM for a live webinar.

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We love BuilderTrend. Mentioning it here in case others want to collaborate and/or ask questions. The learning curve is fairly significant, but it can truly revolutionize how you do business.

Note on handyman... he may save you 20-30% on paper, but it will be a longer process with headaches, guaranteed. He's also not had as many at-bats with getting ADUs designed & permitted as a GC or modular company would have.  In the end it may end up being just as expensive in terms of your time and not being able to rent the unit for months longer due to delays.  Whole process from start to finish should take 8-9 months. 2-3 months design, 3-4 months permitting, 3-4 months build. Also, everyone is VERY backed up right now, material prices are all over the place. Be prepared for the higher numbers, it's just the likely reality at the moment.

Cost input: 550 sqft will cost around $175K to build, 330 sqft will be $140K. With either size, add another $15K sitework, $10-15K plans & permits.  That's for a general contractor, all finishes included (fixtures, appliances, quartz counters). Would expect a handyman type to save you maybe 20-30%.

Builder: Also try Neo Builders in LA.

Saw several people mentioning the income limits on Roth, but I didn't see anyone point out that you can still do a "backdoor Roth" as a high earner, which effectively means you can still put away $6K Roth each year. BP even has a podcast on it: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-161-mad-fientist

A few more comments as you think about how to weigh the overall value of contractor vs no contractor in terms of time, ease, and predictability. In addition to the points Dan mentioned above, there is an experience curve with getting ADUs permitted and built. Providers that specialize in ADUs will be more knowledgeable about how to pad against risks you might not think to look for. For instance, when laying out the ADU floorplan on the site, it's advisable to leave an additional 12-18" beyond the allowed 4' side and rear setbacks to avoid a costly building location survey.

What you mentioned for the 1000 sqft is spot on for pricing from a full service GC... I'd put the 990sqft 2BR/2BA 33x30 PRADU plan at $245K vertical build + another ~$30K in typical sitework, solar, plans & permits. 

Quick note on size... you can fit 2BR/2BA in 750sqft... that would not only be cheaper to build just based on sqft, you'd also avoid impact fees by staying <750sqft.