LICENSED ACCESSORY DWELLING UNIT (ADU) CONTRACTOR IN SAN DIEGO, CA

ADUs are any additional housing structure that is built on a property that already has a primary home or dwelling. These types of tiny homes can come in a wide variety of shapes and sizes while being completely customizable. ADUs have many other names that they are referred to as such as granny flats, guest houses, and in-law suites. No matter what name they go by, they all have the same structure and purpose. These homes have many benefits for you and can be built on both single-family and multi-family lots. ADUs have their own entrances as well as other spaces such as bathrooms, kitchens, and living areas. In addition, ADUs can either be attached or detached. When they are detached that means that they stand alone while the attached option is like converting a garage. For a more detailed comparison of attached vs detached ADUs, please click here. 

These granny flats have become increasingly popular for many different reasons, whether you are looking for passive rental income or want the perfect guest house for friends and family. Accessory dwelling units are the best opportunity to add value to your home while allowing you to make a profit. ADUs can be used for a lot of different reasons, which is why they have become so popular over the past couple of years. 

Building an ADU has never been easier since a new package of bills was passed in January of 2020. Now, in California, you can enjoy this luxury tiny home and all the benefits it has to offer because of this new series of bills. Some of the new laws include the ADU permits and how they will be automatically approved for single-family homes and can also be built on multi-family homes. 

The new laws that have been put into place make building ADUs legal on a state level which invalidates any city ordinances. Not only do these new laws permit the rebuilding of ADUs, but they also make the whole process a lot easier. You can now build an ADU in an HOAs without any hassle and cities have to approve ADU applications within 60 days. Other burdens that have been lifted by these new laws include that ADUs built by 2025 don't require the owner to live at the property and ADUs can be developed at the same time as the primary housing unit. With all these new laws in effect, it has never been easier to gain the permits you need and build the perfect ADU to fit your needs.

When it comes to real estate, the averages are pretty high when living in San Diego. The average real estate costs in San Diego are around $829k, and rent can cost as much as $2600 a month for a two to a three-bedroom apartment. So as a homeowner, one of the best decisions you can make is to invest in your home. 

With California’s new laws about ADUs, homeowners can get instant equity just by adding an ADU to their property. These units offer an affordable way to increase cash flow. For example, starting costs only range from $350-$450 per square foot, ADUs will pay for themselves. Suppose we build an ADU on your property that adds a monthly loan payment of $2000 to your mortgage. With that in mind, you can charge a monthly rent amount of $3000, giving you a profit of $1000 every month. Another way to utilize your ADU is using it as an AirBnB to add additional cash flow to your investment. 

Another great benefit of these units is that they add a tremendous amount of value to your home. By building an ADU on your property, your home's equity will drastically increase. The equity of your home is the difference between what your home is worth and the amount that you still owe on the property. Here is San Diego, and ADU will add about 150% of the total costs in equity once the ADU is built. For example, if you build a 750 square foot ADU on your property for construction costs of $400/sq ft. This will make the total $300,000 which will then make your property value go up to approximately $450,000 on completion of the project. Now that is an instant ROI!

When building the perfect ADU you can expect to spend between $350-$450 per square foot in the San Diego area. Typically, this price will decrease as the project gets larger simply because of the fixed costs that are associated with building an ADU, no matter the size. If the ADU you want to build is larger you can expect a larger return on investment when it comes to potential rental income and property value. Keep in mind, our company is a one-stop shop that will be involved in the entire process from start to finish. 

When it comes to building an ADU, not everyone has the cash on hand to pay for the construction. Fortunately, there are many different ways to finance your ADU with many lending options to choose from. Banks realize how much an ADU will increase your property value, making it a low-risk investment for them. For a more detailed explanation of financial options, click here.

Nursing homes on average cost around $11,000 a month for a private room in San Diego. When you have loved ones who need professional nursing care, this cost can be expensive. Luckily, ADUs can help you avoid these costly monthly expenses. Your ADU can act as a suite for your loved ones who need this care. 

ADU financing options range anywhere from $1,500 and $2,500 a month (depending on the size and specifications of your ADU at $350-$450/sq ft). Compared to paying $11,000 or more in nursing home costs each month, you can save a fortune while also benefiting not just your property, but your family as well. In addition, using your ADU as an alternative to a nursing home will give you more time to spend with your loved one and afford them all the comforts of home. 

Another great use for your ADU is a guest house. Whether you frequently have friends and family over that need a place to stay or want a "staycation" away from your primary residence, an ADU is perfect. In addition, just because you use your ADU as a guest house doesn't mean you have to give up the opportunity to make extra income. For example, you can use your ADU as an AirBnB to rent out to guests between visits from your friends and family. The average AirBnB in the San Diego area cost around $120 to $150 per night. Simply renting out your ADU a few nights a month can easily cover your loan payment just by the rental payment alone. If you rent more than just to cover the payment of your loan, all of that income is simply cash in your pocket. now you have a way to gain income and have a place for family and friends to stay as well.