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Pump Your Property Potential with an Additional Dwelling Unit (ADU)

Recent changes to California codes are opening up new options for further development on single-family lots. For homeowners who would like to invest in income-producing real estate and also want to keep a close eye on their tenants, an additional dwelling unit (ADU) can be a great option. I spoke with a civil engineer from Glendora who examined a case of a 1,080 SF existing single-family home set on a 6,800 SF lot with a 2-car garage, and she determined a 1,200 SF additional dwelling unit could be built on the available lot area. In that area, it could rent for $2,300 to $2,500 per month. A typical investor would probably pay around $300,000 to command that kind of revenue.

If you would like to explore this option, here is a basic process you can follow:

  1. Consider how constructing another building or adding to the existing home would impact the utility of the lot.
  2. Have a civil engineer help you understand the optimal building area and how to prepare the site.
  3. Have a contractor give a ballpark price for building the ADU.
  4. Have us help you determine market rent if you plan to rent out your ADU.
  5. Contact a lender about financing options.
  6. Confirm the financial pieces make sense.
  7. Have an architect draw the plans and get them approved.
  8. Build and enjoy.

Want to explore your real estate possibilities? Call or text me at 626.328.4199.

Interested? let’s talk

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