Land with ADUs

[Mitchell Gunlock]

What do you all think about buying undeveloped land and setting up ADUs to rent out? I'd only look at land that's at least connected to water and power and already has a septic plan in place.

[Dan H.]

Quote from @Jonathan Greene:

Quote from @Mitchell Gunlock:

Quote from @Jonathan Greene:

It probably sounds easier than it will be in practice. It's technically not an ADU if it's the only property on land as it's an accessory dwelling unit to a main unit. You are talking more about a cottage cluster. You would want to check local zoning to make sure you could build more than one as a lot goes into that beyond just being close to plumbing, electric, and gas.

When you mention "a lot goes into that beyond just being close to plumbing, electric, and gas," what are the top things people tend to overlook when preparing to build ADUs?

Access roads and if multiple are needed for each unit.

City regulations and zoning.

Impervious cover requirements or percentage across the whole lot.

Drainage per units built.

 In some jurisdictions, off street parking can be a requirement.   I knew a developer before the exception for being near mass transit planned to build 4 units but was only able to build 3 units.   It heavily effected his under writing results.   If he was building it today, the parking would likely not be an issue.   In my market they keep reducing parking requirements while removing public parking.   This has mostly been for bike lanes but the most recent is a statewide prohibition on parking near cross walks.   The city is eliminating a significant amount of parking near the cross walks.   In many areas there is already not enough parking.   It is not uncommon to have to park blocks away from your residence.  At isle vista, my son skate boarded to his parked car because he sometimes was blocks from his residence.  

The ADU hurdles are jurisdiction specific.

Good luck