Riverside ADU Construction
QUESTIONS ANSWERED...

Is it worth it to build an ADU?

Answer...

ADUs, or Accessory dwelling units, also called Backyard or Garage conversions, or granny flats, are becoming more popular by the day. In Riverside Los Angeles, where housing is scarce, building a secondary unit can be a great idea. They provide you with additional income and can greatly add to your home’s resale value.

Because of the initial cost up front, some people aren’t sure if constructing an entire new unit on their property will be worth it. While the cost per square foot may be higher on an ADU, the overall investment will be cheaper. If you don't have money for a new investment property, but are still looking to grow your existing Real Estate portfolio, ADU's are a great option.

COST TO BUILD AN ADU IN LOS ANGELES

Building an accessory dwelling unit flat is significantly cheaper than building a single-family house. Average cost of a granny flat ranges from $150,000 to $200,000 from start to finish. This may be higher if you want more square-footage, or your property has access issues or is on stepp slope, etc..

According to Murphy Construction Group, this cost may be lower if you build on an existing structure, such as a garage, barn, or manufactured home on foundation. The cost of building an ADU can then range from $90,000-$140,000.

ADUs can appear cheaper than single family homes by total cost of project, however, jupcon closer inspection they can actually be MORE expensive to build per square foot due to paying a higher price for materials because you are buying so much less of them. It's not intuitive until you realize the huge cost difference on things like plywood when buying 1 Pallet vs 10.

TYPICAL ADU DEVELOPMENT FEES

This cost is harder to estimate but generally runs between $12,000 and $22,00 depending on the loacalized fees that your property falls within.

POTENTIAL USES FOR AN ADU

A great reason to construct an ADU in Los Angeles is for the additional rental income. You can win by adding an additional unit to your property. For instance, you can not only help yourself, but the general populace as well. The up-front costs of building an ADU can be a bit pricey, however the steady rental income can easily make up for it.

RETURN ON INVESTMENT AND RESLAE VALUE

Another benefit to building an ADU on your property is the potential resale value. Having a granny flat is a popular feature, especially in recent years.

This allows you raise your asking price and be more competitive within the market. This is even more so the case if your home and ADU are in a desirable location or close to the beach.

TAX CONSIDERATIONS

When constructing an ADU, your property may be re-assessed for county tax adjustments. Don't be too worried if you haven’t had your home assessed since the time of the initial purchase. They will typically do a blended assessment, which means they will assess the new ADU unit and then add it to your current home value. Please be aware that you’ll usually be paying more in property taxes. This comes with the territory when enriching your property by constructing and ADU.

What advice would you have for anyone considering an ADU or a garage conversion in Los Angeles?

Answer...

I live in Los Angeles. I’m assuming your going to use it as a rental property?

Here’s what I can tell you per my years of experiance. Kitchen and Bathroom are critical. Bedroom spaces then Security and Laundry area.

Kitchen. The heart of any home,having a functional area to cook and clean is a deal maker or breaker. Consider a decent sized refer as well. I think having a small unit but creative use of space to achieve this is challenging yet rewarding.

Bathroom. It’s important to have enough room to maneuver. If you’re converting a garage into separate living quarters. Lend enough space to make this area roomy.

Laundry. Design an area for a proper washer/dryer. If I were considering renting a unit in expensive LA. That last thing I’d want to do is have an additional expense and inconvenience of going to a laundromat.

Security. Can the unit have a privacy fence put in with a locking gate?

Bedroom space. I’d design your unit with room for a queen sized bed , a dresser and a closet and still have room to walk around . Storage in a rental is a premium and can fetch a higher monthly charge.

Other things to consider is a separate electrical panel or sub panel to handle the service. Plumbing and drain upgrades for toilet and shower. Air conditioning and heating. Lighting and windows. Anytime you can install Alternative energy saving appliances will prevent you from over taxing you existing electrical service