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 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
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

Updated over 4 years ago on . Most recent reply

User Stats

12
Posts
2
Votes
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

Loading replies...