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Updated over 4 years ago on . Most recent reply

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12
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2
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Mayra B.
2
Votes |
12
Posts

Build a Prefab ADU or not? Can this affect equity of the house?

Mayra B.
Posted

I'm in the process of purchasing a SFR 3bd/3ba with a lot size over 7,500 sq. ft.

The idea is to build an 800 sq.ft. ADU/Granny unit on it. The ADU will generate a rental income of 2,000 a month.

The cost to build an ADU unit in California is about $200 per sq. ft about $160,000 cost

There is also the alternative to install a prefab unit made of storage containers and the cost for the same sq. ft. is $100,000.

Both alternatives will generate the same rental income of $2,000 a month.

If I decide to sell the house in about 5 years, having a prefab unit will not increase the value of the property as much as if I have conventional construction unit?

What are your thoughts of what type of construction to do?

Spend less on building a prefab unit or go for the conventional construction to get a better sales price when I’m ready to sell the house?

Thank you.

MB

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