San Jose ADUs. Experiences to share?

[Gary F.]

Hello Bay Area BP folks and others. I've been wanting to invest in real estate for awhile. To get started with a low budget I've always thought an in law unit aka ADU, would be a great way to start. My backyard though didn't meet the setback requirements per city codes. However now the State and subsequently the city, have relaxed the codes to encourage homeowners to build. Lucky thing

For those that have an ADU, please share your experiences. Are rental prices on these necessarily lower than the market?

I'm looking into building types. My side area is only 6 ft wide.  Not quite enough for a BobCat to be used. That'll add to the costs since foundation work will have to be done manually. 

Panel prefabricated homes look to be the best choice maybe. As long as they can carry them through that side yard area. 

Any other advice to share is appreciated. Mahalos 

[Anna Vickroy]

This is my first post to BP. I just finished an ADU (detached 480sqft garage conversion) in downtown Livermore. Cost was $120k. Super modern touches for high end tenant (think Lawrence Livermore Lab employee). Rented for $1900. No requirement for owner occupancy.

I'm currently working on submitting plans for another ADU in Concord.

Personally I love ADUs and tiny house design. Easier to get permits for than a duplex. Two rents on one property allow for positive cash flow. My next task is to learn more about prefab tiny homes.