All Forum Posts by: Caitlin Bigelow

Eeek! I would not say that the process of converting a garage in "simple" and that guide is just the super basic info that CityLabs puts out to help homeowners understand the basic rules and regulations. 

First, garages aren't typically designed with the expectation that someone will one day live in them. So some homeowners have to upgrade the foundation and make sure that the units are watertight. Any kind of leaks wants to be remedied well before finishes go in or you'll have a serious headache on your hands! 

Garage conversions, or any ADU, also is required to pass title 24 calculations (an energy efficiency regulation), which means adding insulation.

If you're interested in getting some sweat equity into your project and don't have the background of a GC I'd recommend doing the finishes yourself. Most people are capable of drywalling, putting flooring in, installing cabinets, etc. 

Just remember there's an opportunity cost associated with your time and a professional might be more expensive, but they can do it faster than you can. So if it's a rental, does it make sense to take two months to do it yourself when you could have rented it two months sooner? 

I've worked with hundreds of homeowners who are interested in ADUs -- and actually, I interviewed @Andy Brohard and did a write up of his project . It turned out fantastic. (Andy, I talk about your project a lot in my speeches) :)

Another thing homeowners run into is issues with their garages being too close to high voltage power lines. Hundreds of ADU projects have been stalled and denied in Los Angeles simply because of the powerline distance from their proposed ADU. (LADWP reports that approximately 800 ADU applications in public utility easements have been referred to its queue).

Cost is the number one thing people underestimate with ADUs, especially garage conversions because at the surface it doesn't seem like there's much to do. (au contraire!) A typical garage conversion in Southern CA (where you aren't expanding walls, but leaving existing footprint averages 85-95K. 

Now, with that being said, it's still often the most cost-effective and efficient way to build a second rentable unit on your property. It also happens to be the most popular type of ADU in Los Angeles. If anyone wants some guidance getting started, I'm happy to be a resource.

If you send me a DM with your address I can take a look and give you some further advice. 

Without seeing the property I'd say that a 1-bedroom garage conversion vs a stand-alone 1 bedroom will rent for similar amounts, but the value of the house would be different. In the first scenario, you lose a garage, which a lot of homeowners see as valuable. 

Ultimately, it really depends on your short-term vs. long-term goals, how long you plan to own the property for, and what your budget is. 

@Rhyna, I think budget will dictate for most homeowners what their ADU options are. I've helped nearly 200 California homeowners interested in ADUs and I'd say the #1 misconception is cost.

A garage conversion (usually) is the quickest and most cost effective way to get a 2nd rentable unit on the property. But it's not as simple as just throwing up some drywall and flooring. An architect (or draftsperson) will have to not only show the elevations and layout of the unit, but they will also have to submit a Title 24 (energy efficiency calculation) as well as the site plan for the entire property. Another thing to watch out for in garage conversions is water damage. Typically, garages aren't build with the expectation that someone will one day live there so they aren't as air tight as your home would be. Making sure any kind of leaks and water proofing happens before finishes is critical! 

I would expect to pay between 100-115K for a garage conversion. 

A stand-alone unit will definitely add value to your property, more so than a garage conversion. If you have the space and the budget it's a great option. There are a lot of fantastic options for building a stand-alone unit in the Bay! (I'm also in San Jose)

You can do:

• Stick build - fully customized takes the longest
• Panelized prefab - where the framing, electric, and plumbing all happen in a warehouse and walls are laid flat and then transported. This is advantageous for lots where access is limited. 
• Modular - a semi truck shows up at your home with more or less a finished unit. 

For a stand-alone unit (even prefab) I'd expect the costs to start at ~$400/450 per sq ft. Keep in mind costs with these are not linear and your first 400 square feet are the most expensive!

These all have pros and cons and there's a lot to consider. I'd be happy to connect you to some of my resources here! Feel free to reach out. I love helping homeowners with ADUs. 

@Chen Zhou wowza! That's awesome. I'm surprised you can build for so reasonably. That's probably what you would spend on construction in San Diego.... 

@Daisy Chou those numbers you listed 350K for attached and 250 for conversion are consistent with what I've been seeing. Can you send me a message with the general contractors you spoke with?  I have someone really fantastic I can recommend too! 

Hi @Chen Zhou , so just to clarify the 170K construction budget covers just an addition - not the construction of the entire unit. So you're using some of the existing home + addition to create the ADU.

After talking to a number of architects and contractors I've heard it's difficult to find someone who will do the work for $500 sq/ft. 

Hi All - I just moved to San Jose (Willow Glen) to expand my ADU consultation business. We've conducted ~130 ADU consultations in the last two months in San Diego, but am still learning the nuances of the Bay Area (permitting process, price per sq ft, etc)

I'm also interested in finding ADUs in progress or completed to do some videos and show people what's possible. So if anyone here has a finished ADU that's well designed I'd love to interview you on camera and do a quick home tour! Please feel free to message me. 

hi Sarah, hgtv has really done a disservice to people making you think you can plop a tiny home anywhere and live mortgage free and happy. I wrote extensively about this topic on my website. Tiny homes (with wheels, ie: non permanent) are illegal to place on SFR pretty much anywhere in the country. They are classified as Rvs and must be parked in an RV Park, but there's even a lot of restrictions there.

To build an ADU, which is about as close to a tiny house as you can legally get, you need to build on a SFR. With no down payment I don't know how you'd pay for that. ADUs are expensive. Their cost per square feet is higher than larger sfh because you don't have the offset of cheap square footage, hallways, big bedrooms, etc and you still have to have a bathroom and kitchen.

The most recent article I wrote about on my site talks about subdividing lots and selling the ADU separately. You may be able to find someone willing to let you build on their land and the subdivide it and sell to you. Obviously a bit trickier, but cheaper than buying an entire home + ADU and completely legal.

Good luck! 

Looking forward to presenting Lynda! We've helped lots of homeowners maximize their properties through building a granny flat. 

Yes, building an ADU changes your property taxes.

The state will do what’s called a blended assessment.

What is a Blended Assessment?

A blended assessment means the base value of the existing house will stay the same. Your accessory dwelling unit’s additional value at current market rate will be added to the existing home’s value. Once everything is added together there will be a 1% tax rate added to that amount.

Let’s look at an example.

A home purchased in 1990 for $100,000 has a base value of $156,000 (from Prop 13’s 2% increase). Let’s say you then build an accessory dwelling unit valued at $75,000.

You would add $156,000+$75,000=$231,000

So $231,000 is the new assessed value of the home.

Does Prop 13 Apply to ADUs?

Yes. The assessed value set when the ADU is added to the property will be taxed at 1% and up to 2% annually based on CPI.

I have a lot more info on ADUs on my site :) Hope that's helpful.