All Forum Posts by: Brian Larson

It could be.  I know people that have done that.

I'll bet @Dan H. has a better take on that question because he has more experience than me.

@Dan H. is absolutely right. I am in the middle of my ADU project now and I can't help but wonder what would have been if my wife and I took our capital and just invested it somewhere else for cashflow instead of building this really expensive project. If rent and property continue to appreciate, it may still work out, but only time will confirm if we made the right decision.

@James Tiu - Thanks for sharing.  I look forward to hearing more about your project and process.  2 things to consider...

1. ADU costs seem a bit low. Prefab units can often times cost $200K and stick built are even more. Are you planning to self-build to save costs?

2. ADU construction does not always have the appraised return people expect. This is mostly due to the way appraisers handle the property. Just keep in mind that you might have to "fight" a bit for the new valuation at the end of the construction process.

@John Prucha - I hope this project continues to work out for you.

I have personally experienced similar issues with an ADU project here in San Jose, California. Despite the fact that San Jose it super friendly to ADUs, it took over 7 months of back and forth before the city finally approved my ADU permit.  I was beyond frustrated but the project has finally started.  Once it is complete in January 2021, it will cover over 50% of my mortgage.

Seems reasonable.  I don't have any experience with this but I am curious to hear more about yours if you move forward.  ADUs are the best!

I am not aware of any good online options.  I would just call around to some of the local credit unions - San Mateo CU, Provident CU, Tech CU, Patelco CU, etc.

I'd look at some prefab options.  They can be more cost effective but you will have to really search for a deal because many units have "hidden" site fees and other charges from the city that do not factor into the overall purchase price for the unit.  

My basic advice is to think "outside the box".  One good success story I heard about was someone who had something created prefab with Tough Shed.  I might try looking into an option like that.  They aren't flashy but it sounds like they can get the job done.  

https://www.tuffshed.com/tuff-shed-tiny-houses/

@Michael Frank - HAHA. I was thinking the same thing on this thread and many other ADU threads.

You need a survey to start your design process.  I'll send you the contact for the guy I used in San Jose.  He is out of the central valley.

There is no set cost.  It is based on a reassessment from your county based on the construction.  You should come up with a value for the construction and calculate a potential increase based on the price of construction.