Advice for a Santa Barbara Project

[Andreas Blomst]

Hi All,

I have a 2/2 SFH rental in Santa Barbara. Its about 8 blocks from State street, and my wife and I decided to develop the lot. We have approved and pulled permits to add a bedroom to the original house making it a 3/2 and adding a stand alone 2/1 ADU behind the main house. This is truly unique in that we have pulled and paid permits with no "owner occupancy requirement" which Santa Barbara has been requiring for many properties, making this property a true multifamily potential. The house is currently rented with tenants that are on a month to month, but are willing to live in the property during construction for a discount.

Due to some changes to our personal life situation, managing a new project is not something we can do at this time. So My wife and I have had some discussions with local real estate agents and have been disappointed to see that most don't add any value to the property due to the pulled permits. 

  Any advice on how to market this property or any recommendations on what to do?

Currently 2/2 rented for $3250/month

Value (according to real estate agents) $835k-$875

Pulled permits allow:

3/2 main house (adding 182 sq ft) estimated Owner builder cost of construction $45k.

Would rent for $3800

2/1 Back house (781 sq ft) Estimated Owner builder cost of construction $150k

Would rent for $2650

Andy