Dilemma with an ADU Conversion

[Gadiel Del Orbe]

I own a Duplex in Los Angeles and I want to convert the back storage unit into an ADU. I'm planning to demolish the storage and build the ADU from the ground up. The ADU is going to end up being 552 sqft and a one-bedroom. I've never done anything like this before, but I'm looking to learn from this. My plan is get a home improvement loan and hire subcontractors myself. I'm afraid of spending too much money on this conversion, a contractor quoted me at 100,000 and it scared the living daylights out of me. I heard if I do it myself I would save half of that. Do you guys think this is a good idea? or should I hire a contractor to do the work?

How much does it cost to build an ADU? Also, do you know any home improvement lenders you could recommend me?

[Dan H.]

In my market GC's charge 30%.  You are unlikely to save anywhere close to 30%.  First the GC has subcontractors that may give the GC a discount and because of bulk purchasing discounts.  Next there is the inefficiencies involved in learning.  I suspect your savings, if you do fairly good job, will be 10% to 15%.   If you do a great job then more.  However, a lousy job and you could result in the effort costing more than using a GC.  Also realize acting as the GC is work and takes time.

My own belief is that if you are doing this one time, hire a GC.  If you are planning on doing this multiple times, then it may be worth the effort, but realize the compensation for effort may not be the greatest on the initial effort.  Subsequent efforts should be able to leverage what you have learned and should produce additional savings acting as GC.

Good luck