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Updated about 2 months ago on . Most recent reply
![Suganya Vinayakam's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2726112/1683066700-avatar-suganyav.jpg?twic=v1/output=image/crop=1536x1536@0x508/cover=128x128&v=2)
How much new ADU build increase value of the home in california
I'm currently constructing an ADU in Southern California. While I haven't remodeled the main house, it's situated in a highly desirable neighborhood. I'm interested in understanding the increase in value that the newly built ADU will bring to the current value of the property. will it be appraised for same cost per-sqt as like main house? Did anyone appraise the property / sold after adding adu?
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![Alberto Cioni's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2958547/1709151302-avatar-albertocioni30.jpg?twic=v1/output=image/crop=481x481@0x79/cover=128x128&v=2)
I think and ADU is the best investment in Los Angeles.
You have the land so no extra cost for the land. Great advantage.
To build a house the biggest cost in LA is to buy the land. It is so expensive here the land.
The ADU unit construction here is around $ 200K-250K for 2 bed and 2 bath. But then you can rent the ADU for about $ 40000-50000 per year. So in 5 years you have the money back and endless cash flow for the future.
And your house will be much more valuable for investors.