3 Questions to Ask Before you Build your ADU

Henish Pulickal

October 13, 2023

I often say, “You can’t afford not to build an ADU!” We find that many of our clients understand this well and build one or more ADUs because the return on investment (ROI) is way higher than any other safe investment and better than investing in out-of-state real estate. We’re increasingly seeing more ADUs being built for family members or even owners that are downsizing and will happily rent out their primary residence for a very high rent. In fact, my neighbor did this exact tactic. He built a 600SF 1-bedroom ADU above 3 newly constructed garages and moved into that unit. He then rented out his 2,000SF, 3-bedroom home to a family who are paying market rent (which is very high in most of San Diego currently). That’s his retirement plan and it’s a pretty good one.

Building for your family is also a common reason and we’re seeing more of this. It keeps your family close (assuming you like them), and they also have their own space, kitchen, and bathroom! No need to wonder if grandma ate your leftovers! Before you start planning for your build, it’s important to make sure you are designing properly for your purpose and your location.

What Type of ADU Should I Construct?

This really depends on how you plan to use it. Since you can build as small as 150SF (perhaps to use as an office or have a wall bed for occasional guests) or even up to 1,200SF with 3 bedrooms so you can accommodate a lot of people! Cost is a consideration, although the rule of economy of scale applies. Smaller structures cost more on a cost per foot basis. Your space available is an important consideration too. Having a nice backyard with alley access is ideal, but we have built ADUs in all kinds of spaces: above garages, converted garages, an addition to the primary home, or even just adding an exterior door and a kitchenette to an existing bedroom works too! You could even build 2 story ADUs with garages and rooftops!

Modifications for Elderly Residents?

When planning for age in place, there are several design decisions you can make that will make your life a lot more comfortable. For example: you can avoid stairs, design lower cabinets, better lighting, mobility accommodations for a walker or wheelchair and strategically positioned outlets and switches for easy access. Other considerations include walk-in bathtub, safety bars, smart home upgrades and even medical alert systems.

Can My ADU connect to Existing Utility Lines?

This is a loaded question and answers vary depending on what you have currently and what you plan to build. For example, if you are building a detached ADU, you will have to add a solar system. But you may not need a separate electrical panel. If you plan to bill your ADU tenants for their utilities, consider getting a smart meter, which will tell you how much power they used. This is much more affordable than getting a separate meter. Adding a separate water meter is also very expensive, but you can use a smart meter for that too. Gas is not a consideration, since that’s not allowed for new construction in California. Regarding sewer lines, most times we can connect to the existing sewer.

Conclusion

I often get asked, “How much does it cost to build an ADU?” It’s like asking, “How much does it cost to buy a car?” It can vary greatly! We’ve done garage conversions as cheap as $120k all the way up to $650k for 2 ADUs over a garage. Fortunately, a phone consultation with us can be very informative for you. With just your address and your goals, we can help walk you through the process of designing and building the perfect ADU for your needs! ADU financing options are quickly expanding, and we can connect you with the right people to get a bank to pay for the project. CalHomeCo specializes in custom home building, serving clients across San Diego, CA, and its surrounding areas. To schedule a complimentary consultation, please contact us at (858) 633-7812 or submit a request for a quick quote through our contact form.

ADUs in San Diego offer a versatile housing solution. Whether you seek extra living space, rental income, or space for family, take the first step today. Schedule a call with CalHomeCo for your personalized ADU consultation and turn your vision into reality. Your dream ADU is just a call away!

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