All Forum Posts by: Account Closed

Hello everyone! I am finally moving forward on an ADU project I have been working to permit since the new ADU law went into effect in California back in January of 2020.

Originally, I wanted a tub in the bathroom since a full shower would give me more value in the property as well as higher monthly rent.  However, now that the walls are framed, I am finding it to be a very tight squeeze in the bathroom with the sink right next to it.  The sewer lines have already been placed, inspected and concrete poured so I cannot change the location of the toilet or tub.  BUT, I can opt to create more space by going with a shower stall instead of a full tub.

I was wondering your thoughts on this. My thought process is that this ADU is in a beach community and people are used to smaller spaces, so I'm leaning towards keeping the tub so I can claim a full bathroom vs. 3/4 bath.

Thank you all and have a safe holiday season!

Hey everyone!

How are Short Term Rental hosts (AirBNB, VRBO, etc.) with multiple dwellings on a lot able to rent out their properties for less than 30 days?

I may be reading this incorrectly (highly likely), but according to a 2018 zoning code cleanup linked below, it reads "the update will also add provisions that require owner occupancy of one of the dwelling, and prohibit renting of ADU for less than 30 days".

Does this mean investors in unincorporated areas are only renting rooms and entire homes? Would it be possible to rent the JADU or the SFD as long as the owner occupies the ADU?

Thanks for taking the time to read this and, hopefully, leaving a helpful response!

https://www.sandiegocounty.gov...

You could look into prefabricated homes.  I don't think the savings is as great as most people hope but it might be enough to make it worthwhile.

You should be able to spend less than $250k for a detached 1000 sqft. Unless there are significant site issues or you are putting in multiple customized features one would find in a 1MM spec build, you are getting fleeced at that price point. I am completing a detached ADU in San Diego, so I do know many GCs *attempt* to charge those rates. Several don't. 3 bids are not enough if you are finding GCs from yelp / ads / maxable events... they're all cut from the same cloth and not representative.

I am going with Murray Lampert. My top three were Murray Lampert, SD Casitas and ADU Geeks. Murray Lampert had the best option for me with their Design and Build team since I don't live in San Diego. SD Casitas offers design and build options too. They were great and it was a tough decision. I may have gone with SD Casitas if I lived in SD. ADU Geeks is a really good team and I think they might specialize in garage conversions. Would recommend giving them a call. Good luck with your efforts!

I am building an ADU on one of my rental properties and looking to maximize the appraisal value. The ADU will not be attached to the primary home and will have a separate entrance with parking.

How have appraisers been valuing stand-alone properties? For example, if comps for the primary home are $500 sq ft, are ADUs in the San Diego market being valued at $250 sq ft? I believe a duplex comp is most appropriate but I am trying to get an estimation on what the appraisal could come back under worse case scenarios. Any insights shared about ADU appraisals would be greatly appreciated. Thanks!

I just bought a duplex and I'm looking to convert the garage into an ADU and was looking for some guidance on the process and any recommendations on ADU specialists, planners, contractors etc.

A bit about the property - the duplex consists of 2 detached buildings. The one in front is a 2 bed / 1 bath unit and the one in the back sits on top of a 3 car garage and is also 2 beds / 1 bath. The 3 car garage is actually a 2 car garage separated by a wall from a 1 car garage (which the tenants in the front unit use to park their car).

I am looking to convert either the 2 car garage into a studio and keep the 1 car garage for tenant use, or convert all 3 car garages into a 2 bed / 1 bath. Of course, I would get more rent converting the entire thing to a 2 bed/1 bath, and have everyone use street parking. There is ample street parking since the property is near a cul de sac like part of the neighborhood. However, I'm not sure value wise, which option makes the most sense since some people really value garage parking. This is San Diego though, so it's not like harsh weather would be a problem.

I am also wondering what the process is like to do this conversion. The first steps I think is to get a permit and find ADU planners to create a floorplan and get some quotes. I am looking for any recommendations or guidance on the procedure to go about building an ADU. I'm hoping to do this conversion within the next few months or year - the sooner I get started on the permit process the better, since I've heard it takes months to get permits.

Also I'm not sure how much the entire project would cost. Since there's already a 2bed/1bath unit above the garage, it would be easier and cheaper than erecting a completely new standalone structure. I've heard anywhere between $100-300+ per square feet but have no clue what price I should be expecting to pay for the conversion.

Any tips / advice / recommendations / referrals are welcome! Thanks!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $720,000
Cash invested: $250,000

ADU development on SFH property in cul-de-sac/ weird property layout that actually better fit as a duplex.

ADU size: 550 sqft (~$320/sqft) in 2020.

What made you interested in investing in this type of deal?

Lot size and location.

How did you find this deal and how did you negotiate it?

MLS. Negotiated with repairs.

How did you finance this deal?

Conventional loan. Refinanced after build out.

How did you add value to the deal?

Addition on top of garage, separate parking area for tenants, solar panels on shed style roof.

What was the outcome?

Successful build with tenants paying off the ADU in 8 years. Cashout refinanced it after construction being able to pull money out pretty immediately.

Lessons learned? Challenges?

Permitting through the pandemic was very painful

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Agent - Redfin.
Lender - local bank

I have a 4-plex that had the single car exterior carport converted into an un-permitted ADU in Oceanside CA. Does anyone have a reliable contact to do drawings, engineering study and submit to the city for permits? Also, I would be interested in contractor referrals to perform modifications to code etc. Thanks in advance!

I was just going to share this. I haven't personally used it but it might be worth at least checking out for people thinking about ADUs in California. They say there are income limits ("low to moderate income"), but with San Diego's limit being $211k, it's not that low of a limit:

https://www.calhfa.ca.gov/adu/