ADU or not: Basement Only Needs Kitchen

[Dan Perron]

Advice/thoughts needed! I'm stuck in my analysis of a 5BR/3BA (upstairs 2BR/2BA, downstairs 3BR/1BA) house in San Diego. The basement (rare in San Diego - it is positions on a sloped canyon rim) is completely finished with a walk out entrance and compliant (I think) windows. To make the basement a separate independent living space I would just need to put up a separator at the stairs and add a kitchen (and a few other things, I'm sure). I am trying to figure out why I would go the ADU permitting route.. wouldn't that just add more time/money?

The main advantages of getting it permitted I could see are 1) potentially added value to the equity of the home (but questionable how much) and 2) separate address for the basement ADU, making mail delivery etc more straightforward?

What other advantages of getting the basement officially permitted as an ADU am I missing? I wouldn't take any shortcuts in the kitchen build and would make sure all is up to code/safe.

Any advice on things to look for in terms of adding a kitchen to the basement?

Basement is basically exactly 50% of the total sq footage of the home, so I'm good on that regulation. 

I should also note this home also has a sizable attached 2 car garage that could later be converted to a jADU. 

[Dan H.]

Quote from @Dan Perron:

Advice/thoughts needed! I'm stuck in my analysis of a 5BR/3BA (upstairs 2BR/2BA, downstairs 3BR/1BA) house in San Diego. The basement (rare in San Diego - it is positions on a sloped canyon rim) is completely finished with a walk out entrance and compliant (I think) windows. To make the basement a separate independent living space I would just need to put up a separator at the stairs and add a kitchen (and a few other things, I'm sure). I am trying to figure out why I would go the ADU permitting route.. wouldn't that just add more time/money?

The main advantages of getting it permitted I could see are 1) potentially added value to the equity of the home (but questionable how much) and 2) separate address for the basement ADU, making mail delivery etc more straightforward?

What other advantages of getting the basement officially permitted as an ADU am I missing? I wouldn't take any shortcuts in the kitchen build and would make sure all is up to code/safe.

Any advice on things to look for in terms of adding a kitchen to the basement?

Basement is basically exactly 50% of the total sq footage of the home, so I'm good on that regulation. 

I should also note this home also has a sizable attached 2 car garage that could later be converted to a jADU. 

 San Diego is a large city.  The enforcement of “rules” varies within the city. 

Anywhere in the city, a neighbor complaining about an unpermitted unit could result in the requirement to either get the unit permitted or remove the unit. The chance of being forced to legalize an illegal unit is much higher in Rancho Bernardo than City Heights but even City Heights is not without risk. 

The cost to convert a non legal unit to a legal unit is higher than doing it legal from the start.  However, if your non legal units never get tagged, then you will never be forced to legalize it.  

Legal ADUs in most areas add far less than their cost. JADU in most areas reduce the value of the property. The ADU while it adds less value than the cost to add the ADU, it ads far more value than an illegal unit (which may detract value from the property to add minimally to the value).

To me if I can legally add the unit, I would not add an illegal unit. It will cost more to add legal ADU unit, but no risk of getting unit tagged and it will add some value to the property.

If you chose to take the risk, it could work out great or not.  In City Heights it may be worth the risk.  In Rancho Bernardo I suspect it is not worth the risk as their is high chance the illegal unit will get tagged.

Best choice is to purchase properties that already have legal ADU. there is outstanding chance you purchased the ADU for far less than it cost to add the ADU.

Good luck