CA ADUs

[hallett21]

Well this can’t go wrong lol

A new law allows homeowner to sell ADUs like condos, boosting homeownership. Here's how AB 1033 works

A new law gives homeowners the option to construct ADUs and sell them like condominiums, increasing the prospects of homeownership.

www.latimes.com

 

[HgH Vltg]

Oh great......

 

[hallett21]

I wouldn’t, but it’s hard to not think about building 2 on our lot and becoming a slum lord.

A typical SFR overnight grosses 7500+ a month in rental income.

 

[NicPaus]

My neighbor 2 doors over does surveys and lot splits. He said last year something was going to happen. Mentioned a possible urban lot split. Said if I waited 3 years I could build 3 and sell separately. I have not submitted my plans yet for addition and new garage.

This might benefit me on my other property. The small lot subdivision I have done in the past takes 18 months. And requires widening the street. So plans got changed to 2 houses and 2 adus. But now if they can be sold separately and no widening of the street the value will go up even more. Plan is to keep and rent all 4. But if they could be sold separately $$.

 

[EmpirE231]

This will help the housing shortage, and affordable housing situation

 

[Mandelon]

I've been trying to get plans through the city for over a year to build two houses and two ADUs on one lot I own. It takes forever......

 

[Done-it-again]

Yea, then have someone murder you in yore sleep or watch your kids play in the back yard.

Guess I'm little more private than others..

 

[hallett21]

This will help the housing shortage, and affordable housing situation

I can’t wait for zillows algorithm to go off the rails. Price per square foot is about to sky rocket lol.

 

[hallett21]

Yea, then have someone murder you in yore sleep or watch your kids play in the back yard.

Guess I'm little more private than others..

I think the way to do it is to either rent them out or sell for a hefty profit.

Either way it’s just going to drive a wedge further between the haves and have nots. Currently in the San Fernando Valley a 300-600sq ft ADU goes for 2-2.5k a month. Assuming the mortgage was the same that means an ADU is “worth” north of 350k.

If you’re in @NicPaus area I bet the ADUs are going for 3-4k a month. So 450-500k for a shoe box lol.

 

[NicPaus]

The guy down the street built 2 houses 2 ADUs right across the street from last 2 houses I built and subdivided. Front house no garage 2 ADUs in middle that are connected no garages back house has garage. He gets $4200 for front house $3700 for each ADU and $4500 for back house. This is in the Gateway so LA city but Torrance address.

The ADU I am currently doing is one block from the 110 Freeway in LA county. 400 sq ft. Existing detached garage we are converting. Has nice size private yard. Realtor is going to list for $1950.

Her other properties in Pedro where you installed the main panel Hallet21. Finally got approved for the ADU. Coastal commission and architect held it up. 26 months later approved. 840 sq ft. Should bring in $2600 a month. In the rough part of San pedro.

 

[COCA COLA COWBOY]

I'm in real estate so this actually benefits me, but ethically I think it's horrible! In many neighborhoods of San Diego there is absolutely no parking. Cars riddle the streets, people everywhere, buildings up against each other, no privacy in the backyard, it's making this state a high density wasteland.

 

[hallett21]

The guy down the street built 2 houses 2 ADUs right across the street from last 2 houses I built and subdivided. Front house no garage 2 ADUs in middle that are connected no garages back house has garage. He gets $4200 for front house $3700 for each ADU and $4500 for back house. This is in the Gateway so LA city but Torrance address.

The ADU I am currently doing is one block from the 110 Freeway in LA county. 400 sq ft. Existing detached garage we are converting. Has nice size private yard. Realtor is going to list for $1950.

Her other properties in Pedro where you installed the main panel Hallet21. Finally got approved for the ADU. Coastal commission and architect held it up. 26 months later approved. 840 sq ft. Should bring in $2600 a month. In the rough part of San pedro.

I was gonna ask if you finished it .

 

[Skinny Tire AH]

But the weather…..

 

[Havasu Rehab]

In the rough part of San pedro.

Rough part of Pedro? The hell you say!

 

[LargeOrangeFont]

I think the way to do it is to either rent them out or sell for a hefty profit.

Either way it’s just going to drive a wedge further between the haves and have nots. Currently in the San Fernando Valley a 300-600sq ft ADU goes for 2-2.5k a month. Assuming the mortgage was the same that means an ADU is “worth” north of 350k.

If you’re in @NicPaus area I bet the ADUs are going for 3-4k a month. So 450-500k for a shoe box lol.

This a property tax play. They are going to have to reasses you if you subdivide your lot.

 

[NicPaus]

Rough part of Pedro? The hell you say!

Centre and 11th.

One of my Sisters lives in Pedro. Cheapest 3 bedroom 2 bath in the Southbay when she bought. Not the best area. But much better than Centre. After I rehabbed it for her she has about 350k equity now in 6 years. That Centre house my Realtor bought for like 160k 12 years ago. With the ADU added should be worth a million or so.

 

[hallett21]

This a property tax play. They are going to have to reasses you if you subdivide your lot.

Is there anything stopping the property owner/HOA from charging the difference?

Meaning add an extra $200 a month per unit to cover the property tax increase.

Edit. The article says you have to create an HOA for this to be legit.

 

[DWC]

What could go wrong.

 

[jetboatperformance]

Lots of things I aspire to do in life but a landlord isnt on the list I'll just leave it at that

 

[hallett21]

Lots of things I aspire to do in life but a landlord isnt on the list I'll just leave it at that

It funny because it’s got to be in the top 5 of most polarizing conversations lol. It’s been good to my family but I’ve heard horror stories as well

 

[Skinny Tire AH]

What could go wrong.

State mandated rent control

 

[NicPaus]

Lots of things I aspire to do in life but a landlord isnt on the list I'll just leave it at that

Problem is once you ad a ADU. Property becomes rent control in CA.


Majority of the very well off I know are landlords though.

 

[C-2]

I've been trying to get plans through the city for over a year to build two houses and two ADUs on one lot I own. It takes forever......

Thinking of doing the same. Setting the kiddo up for a nice income stream. 1.10 acre in the city limits, equestrian zoned, over the hill from Horsetown USA.

 

[Willie B]

… Front house diagonally across from me rents for $5300 in El Barrio No Ho… I would imagine the two story rear unit rents for $5000… next-door to these people, and directly across the street from me the front house rents for $3500 and the rear two story I think for $3000???…

… I drove by a friend’s old house, which used to be a really cool Twenty’s house on an acre… the house has been renovated… and the 20s charm destroyed… Neighbor girl happened to notice that there was now four mailboxes… Wayback when…this property was an acre… Part of it was sold off. There may have been a half acre left.???… I am very curious as to what the LA City zoning might be to allow obviously four units on whatever size that property is???… That house is it in Sun Valley…not in North Hollywood…

 

[Havasu Rehab]

Centre and 11th.

One of my Sisters lives in Pedro. Cheapest 3 bedroom 2 bath in the Southbay when she bought. Not the best area. But much better than Centre. After I rehabbed it for her she has about 350k equity now in 6 years. That Centre house my Realtor bought for like 160k 12 years ago. With the ADU added should be worth a million or so.

That’s awesome. I’ll bet $100K of that equity was due to the close proximity of Busy Bee’s.

Awesome job though. That ROI is amazing.

 

[Desert Whaler]

Sorta-Related . . . in a 'California Sucks Ass' sort of way . . . .

So there is / was a house leveled several months ago on the other side of my tract. (Southeast Huntington Beach)
Didn't pay much attention.
Drove by and it looks like any other custom new home . . .2-story square box with ZERO architectural design . . .pushed out to the max footprint etc.
I figured, 'Here we go again . . . soon we'll see Biff & Buffy's 2 Teslas parked out front, with video surveillance warning signs on their fake lawn".

Then the mailman gave me the local gossip/ scoop . . . cause work has completely stopped on the place.
Turns out a retired LEO neighbor went over there to see what was up with the 'odd floor plan'.
7 Bedrooms, & some weird other shit.
Yep . . . building a drug rehab home.

So the retired LEO did some homework . . . and long story longer, he went down to the city and filed plans to turn his house into one as well. (with no intention of actually doing so).

I don't know the specifics . . . but apparently there is some kind of 'code' where one rehab home can't be within 1500 feet of another one . . . or something like that.
So it completely put the brakes on construction of the new place, and no one has been there working for a couple months now.
I'm sure it's just a delay tactic to prolong the inevitable . . . but I guess the neighbors are furious.

Apparently these recovery homes are big money makers or something for the property owner(s).

 

[NicPaus]

That’s awesome. I’ll bet $100K of that equity was due to the close proximity of Busy Bee’s.

Awesome job though. That ROI is amazing.

I would say it's from all the work I did without charging her. And all the materials I used that were left over from my jobs. She mentioned selling with all the equity. I told her that's the only house I will do.

 

[bilz]

Great way to f up a single faanily neighborhood.
Good job gavin, way to go ca.

F the damn weather!

 

[Rbcconst]

Here come the calls of I want to build an 800 sqft for 150k, its just a tiny basic house, entry level. There not as cheap to build as most think. You have all the expensive rooms in less sqft so cost per sqft is way higher.

 

[whiteworks]

My buddy is building ADU’s on all his rental property’s and as soon as they are signed off he then converts the garage to a Junior ADU, instant triplex LOL

Coming to a neighborhood near you soon

 

[Ace in the Hole]

I'm in real estate so this actually benefits me, but ethically I think it's horrible! In many neighborhoods of San Diego there is absolutely no parking. Cars riddle the streets, people everywhere, buildings up against each other, no privacy in the backyard, it's making this state a high density wasteland.

God help Oahu if this cancer spreads there.

 

[hallett21]

Sorta-Related . . . in a 'California Sucks Ass' sort of way . . . .

So there is / was a house leveled several months ago on the other side of my tract. (Southeast Huntington Beach)
Didn't pay much attention.
Drove by and it looks like any other custom new home . . .2-story square box with ZERO architectural design . . .pushed out to the max footprint etc.
I figured, 'Here we go again . . . soon we'll see Biff & Buffy's 2 Teslas parked out front, with video surveillance warning signs on their fake lawn".

Then the mailman gave me the local gossip/ scoop . . . cause work has completely stopped on the place.
Turns out a retired LEO neighbor went over there to see what was up with the 'odd floor plan'.
7 Bedrooms, & some weird other shit.
Yep . . . building a drug rehab home.

So the retired LEO did some homework . . . and long story longer, he went down to the city and filed plans to turn his house into one as well. (with no intention of actually doing so).

I don't know the specifics . . . but apparently there is some kind of 'code' where one rehab home can't be within 1500 feet of another one . . . or something like that.
So it completely put the brakes on construction of the new place, and no one has been there working for a couple months now.
I'm sure it's just a delay tactic to prolong the inevitable . . . but I guess the neighbors are furious.

Apparently these recovery homes are big money makers or something for the property owner(s).

Ask the HNIC about his moms house. It’s a PITA if you’re trying to live there. Cash cow if you’re running a rehab.

 

[hallett21]

My buddy is building ADU’s on all his rental property’s and as soon as they are signed off he then converts the garage to a Junior ADU, instant triplex LOL

Coming to a neighborhood near you soon

It’s the way to go if you’re gonna do it right (for yourself financially).

That same person can now go lock down a mortgage for something at 10k a month. Or they do 2-3 of these and lock down a 30k mortgage within 10 years.