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Updated almost 3 years ago on . Most recent reply
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San Jose ADU Investment Progress
Over 2 years ago, I started out on a quest to explore and build an ADU at my personal home in the Northside Neighborhood of San Jose. In a few more months, this project will finally be completed. Given that this is getting close to completion, I felt it was the right time to share more of my personal story here with the BP Community.
In December of 2018, I engaged @Adam Mayberry as a architect/designer for my project. He was great! I highly recommend him.
In January of 2019, I performed a site survey with a small company out of Tracy (unfortunately there are no longer in-business).
Over approximately the next 8 months, Adam and I created a simple but elegant design for a new garage with a 1-bedroom apartment above it. In this same period, Adam also designed some plans to remodel the primary house.
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Toward the end of 2019, we submitted an initial plan to the San Jose Planning office. This was a long, long process. We had to respond to questions and resubmit our plans multiple times (keep in mind, we are building a 2-story structure). It was finally approved on the third submittal in July. (Yay!)
We hired a great general contractor at the end of June -- @Zab Khan (First Class Construction). He has been a pleasure to work with. I highly recommend him too.
In August 2019, we demolished of our current garage and a large tree. Zab also started the foundation work.
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In mid September 2019, we poured the concrete foundation (Bay Area "orange planet" Day -- this photo is not filtered).
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By September/October, framing and rough-ins for electrical, plumbing, and HVAC were completed.
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In November, the roof was installed and siding work began.
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We ran into inspection delays with the city around the holidays so December was pretty quiet.
In January, we got insulation and Drywall up. We used spray-in on the ceiling of the apartment.
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Currently we are still finishing siding. Again, the plan is to finish the entire project within the next 2 months. (fingers-crossed)
Overall, I think our family has been really, really happy with the experience. We hope to rent our 600+ SQFT apartment for about $2100 a month, maybe more. We also plan to refinance at the end of this period and take advantage for the lower interest rates.
All in all, the goal is to off-set our living expenses as much as possible and roll the savings into another OOS real estate investment in the coming 1-2 years.
FYI - When the entire project is complete, I will share some high-level numbers for the whole project. In the meantime, let me know if there are any other questions.
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