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Updated about 4 years ago, 11/07/2020
ADU vs regular dwelling crossroads
hi biggerpockets!
for those have done both ADUs and regular dwellings or have made the decision with one over the other, please offer your feedback. it would be greatly appreciated and perhaps help other investors in the same crossroads.
I have a lot in LA City zoned RD2 which Planning says allows me to build up to 3 separate dwellings. I have been reading the ADU discussion here with great interest. On my lot I currently have a SFR with an unpermitted basement (finished) unit that I would like to legalize. I'm in a HPOZ (Angelino Heights) and on a hillside (not very steep), and my basement is ~450 sqft. No part of the basement is visible from the street. I understand ADUs have certain advantages that help reduce the timeframe & red tape to get a permit to build. However, I have also been hearing appraisers just aren't currently giving much added value to ADUs in their appraisals.
I'm debating whether I should legalize my basement by going the regular dwelling route vs. going the ADU route. A JADU is not an option for me as I do not intend to occupy the lot and will rent out both units. I currently have 4 parking spots on the lot so the eased ADU parking requirements wouldn't help me. I've contacted both the Planning Dept as well as LADBS and the latter says the timeframe to assign & approve plans between ADUs vs. regular dwellings is currently running about the same. Architects I've talked to estimated ADUs to take ~8 weeks to get city permits vs. ~8-12 weeks for regular dwellings. For me, a delta of ~one month is not critical. Additionally, if I have to end up paying more for permits & studies (up to ~$10k more) I don't mind doing so if I'll be assured I can make up those expenses on the back-end sale. I plan to hold and operate the property for at least another 5 years.
I'm leaning towards the regular dwelling route but one architect told me going the regular dwelling route might require Baseline Hillside Ordinance (BHO) compliance, hill/slope grading analysis, a soils report, hiring a fire consultant to design/engineer fire sprinklers for the SFR, and having a structural engineer design/engineer the entire house (SFR + basement). If this true, then I imagine the regular dwelling route would add on much more than just one month's timeframe. For those of you who have come across this ADU vs. regular dwelling decision, can you tell me which route you chose and why? I want to understand what additional studies/inspections/reports a regular dwelling permit would require. Approx how much more should I expect to have to spend (permits, utilities) going down the regular dwelling route?