Quote from @Dan H.:
I think your quote is low and it will end up costing more. How much ADU experience does your contractor have in your market? Is this to include everything? I expect ~$20k to $30k higher all in cost.
why are you choosing to do JADU vs ADU? JADU requires owner occupancy (ADU does not require owner occupied) and get even worst valuations than ADUs (which already get bad valuations in CA).
Make sure you do thorough underwriting. In general ADUs in Sf zoned areas are a poor investment and JADUs are an even poorer investment. in particular make sure you know the value that will be added by the ADU and that in your case both units may be rent controlled (no 15 year exemption in some jurisdictions for a garage conversion were garage is over 15 years old. In most jurisdictions if house is over 15 years old it will be rent controlled once it is 2 units).
good luck
It will end up costing more. According to my contractor, the quote includes materials that are not visible (such as lumber and cement), labor costs, and HVAC. I will need to pay out of pocket for visible items like paint, the shower, toilet, vanity, kitchen cabinets, wardrobe, and so on. So, your prediction that there would be at least $20k more if everything is included should be accurate.
The reason for choosing a JADU is that converting the garage into an ADU would require a separate laundry setup and an additional electrical panel in the main house, which would increase the renovation costs for the main house itself. By going with a JADU, I can share these items and keep costs down. I'm not sure if a JADU will affect the house's value, but since I just bought the house in May and plan to live in it for 10+ years, I'm happy as long as the garage can provide a steady cash flow to help offset my mortgage payments. I also have two other properties in the East Bay with much lower interest rates from the past three years.
Thank you for your input!
