Great video showing the cost breakdowns, and describing your process. We are scheduling our MEP inspection this week and hope to finish our ADU in February. We budgeted $250/sqft and were going to easily compete the project for $150/sqft.....UNTIL.... The first electrician failed to sign us up for PG&E connection and design, as per our contract, and this led to the following concerns: 1. Delayed review of electrical needs/design/easements/etc. 2. Determination of interference with easement requiring a relocation of the foundation. 3. Due to that, the City approved initial plans, without knowing the easement conflict (which was still the City's responsibility to know/address). 4. Redesign by Architect (no charge). 5. Resubmittal to City (additional fees). 6. A full 2.5 month delay in overall scheduling. Therefore, we didn't get our permit during my 7 months off of my main job, so I could only do 1/10th of the planned solo work and had to hire contractors for the other 9/10th. However, we are on target to complete this project at around $191/sqft, let's say $200/sqft now that my wife knows we have room for some extra upgrades that we previously discussed. I am 100% confident that my original goal of $150/sqft is attainable, even scaled up, if I could do the work I had planned. I fully realize that the timeframe would extend, but saving $50/sqft is a LOT of money. Our next build will be a new construction build of a Vacation/Retirement home in the mountains. This will be budgeted at $300/sqft, with an anticipated $200/sqft actual price due mainly to the distance from materials and labor sources. Our future neighbor built his for $187.50/sqft, but he has his primary residence within 20 minutes of his new build. Thank you so much for your openness on your build, it has been very helpful for us.
Wow!! that's really impressive. That's a pretty big cost saving because you are doing some of the work yourself! Are you also in California? What trade are you in?
@@DarrenTsai_ I am in California, sort of near you. I never signed up for Facebook ever, until 2 months ago, but they denied me saying I wasn't me. No appeal. Anyways, I can't join your group, but would gladly reach out to you in another fashion in an attempt to share more knowledge. I spent most of my life as a licensed Water Well Driller, focusing mainly on environmental cleanup of gas stations underground tanks, military base cleanup, etc. However, I also worked that career alongside a Geotechnical Engineering company and engineer. I have been closely exposed to every trade it takes to build a home from the bare ground all the way through completion. I ONLY do everything to code, even if it doesn't require a permit (shed under 120 sqft). I do everything I can correctly, then hire a licensed professional to verify the work and that allows for inspections to go very well. I am working on a business plan to help average people manage their own work to save the 20%-25% markups generals get. I don't want to spill the beans on everything but wouldn't mind sharing more privately. My wife introduced me to you, as she loves your content.
I just spent $1.4M on a home renovation in Fallbrook, CA. $250K was spent on just the deck. This was not a hugely complicated renovation and I did a ton of material procurement, design, subcontracting myself. Spending less than $300K on an entire ADU including all fees? You should be dancing in the street right now. Well done.
@@yufliu Are a lot of STR operators getting out because Airbnb is cracking down in many cities? I see a lot of airbnb operators moving towards boutique hotels now.
@@DarrenTsai_ depends on the market but I don’t really see it happening too often. Most people are converting to midterm or just doing it under the table. A lot of people are getting into boutique hotels because of the benefits since it’s commercially zoned and are more scalable but also a lot harder to find
My wife is an architect. You can get blueprints done cheaper with a drafter but will likely be spending much more time going back and forth with the city for permits so it's going to be a tradeoff of time spent waiting. Seems costs vary wildly with contractors so it's good to get quotes from a couple and hopefully go with one who seems reputable. The good ones tend to be busy so it's not a easy process.
Congrats!! That sounds like a great price for a project of that size but I also don’t know what the rates are in SAC. Are a lot of people building ADUs up there??
@@DarrenTsai_ The rates are much higher depending on the contractor. I think ADU are being built in Sacramento from what I am hearing and the work that is being pickup from plan designer and other contractors. It would have been cheaper if I didn't spend $24K on cement walkway last week. The original bid was $158K. It grew to $175K. And finally settled right below $200K after I cemented the area, along with a walkway to the front of the house..
Thanks for making this video. It really helped me get a better understanding of the CA ADU process/timeline. We have 3.5 acres in Nor Cal and the property is sloped. We wanted to have a manufactured home delivered to speed things up but the slopes and powerlines prevented that. We need to build the ADU onsite like you did. Because we're out in the country, we also have to have a new septic system installed. I haven't been able to get a straight answer on actual timelines and costs so this helped a lot. In our County they offer some free pre-approved plans but not sure I like them. I wish your contractor was local because it sounds like your project went pretty smoothly. Thanks again for putting this info together.
Congrats on owning 3.5 acres!! that's amazing. My understanding talking to contractors and homeowners (no actual personal experience) is that the foundation work + earth work (site prep) is a huge cost for building on a slope. The architect/designer and engineer will have a big part in the success of your project because of those foundation calculations too. Best of luck with your project!
Awesome that you got a great deal.. but your numbers aren’t realistic you are misleading people.. how close was his number to the other three bids you got?
As you can probably tell, im a contractor and i have to deal with the damages this type of content causes when we have to break down the news of real cost. You should include the disclaimer of inflation and regulations.. save the adu hopefuls some trouble
Hell ya Darren... excellent video. trying to DIY an ADU project in long beach and basically using friends to do as much as possible since this is a friend doing his 1st ADU on his 1st house trying to make the property an income property in the future. WE hired people for foundation and framing and roofing. So a couple of his FRIENDS are handling everything else. Which we had to correct a few mistakes along the way. like you an eye opening experience of reality and time and the over all real cost of an ADU project. we regret not filming and noting everything that it takes to complete a project like this for the 1st time like we said we were going to do. Shot out to you for making this video..." THERE WILL ALWAYS BE THAT LEARNING CURVE FOR THE VERY 1ST TIME" always keep that in mind... THANX!!!!.... OH YA... total cost projected as of now is around $170,000 for a 750 square ft. unit in the Wrigley district in Long Beach, CA
Wrigley is up and coming!! great spot for an ADU. I appreciate your comment and the feedback. Did you like your contractors? There are so many hidden costs building an ADU for the first time. $170k for 750sqft is a great cost!
This price per square foot is really really good for California! You did a great job… no way you could have done this for less than 350k in the bay! My utility hookups where 30k school impact fees 22k and permit fees 12k… cheaper at quote I got after searching for months was $320 per sqft.
Good for California because all the greedy politicians hands in everything. Lumber tax, title 24...permit and school fees, All making costs much higher than other places in the country....WTF is with the fire sprinkler laws too? Not just because it is in sunny CA.....it is very political....In the early 2000s I could have a contractor build a house for 90k now over 400...that is not just inflation. same house....it is all about the cost of Liberalism. is it worth it .....ask a homeless person.
Thank you for this video! Very detailed and broke down your timeline in a very easy to understand way. And the costs, thanks for including it, hope it's still that cheap when I build one
Super helpful! Was thinking of building ADU unit as well! Curious why you didn’t do one of those already built ADU? Also how did you decide 3/2 bedroom is the right size/clientele you were renting out?
We designed with family in mind first. We did a 3 bed 3 bath with a tub downstairs for families kids. And then upstairs two primary suites with their own bathrooms for convenience. I read too many vendor issues with already built and cost was going to be more per sqft for the modular & prebuilt ADU. Still need to hire contractor for site prep & install. I think They would have had to crane the unit in too.
Thanks for the kind words Don! I explored manufactured and at the time there were supply chain delays issues. The modular/prefab companies were more expensive and less customizable. I’ve also seen in FB groups, a lot of those companies have gone out of business leaving customers to dry. I haven’t dug deep to confirm that though. Have you gone through the process and completed a prefab or modular ADU?
Thanks for this video. Had a lot of useful info. You mentioned corrections to the construction and having to move some windows (too low?) - I'm wondering if the architect's drawings were correct or the contractor didn't read the dimensions right ? I don't agree that those things just "happen". The vinyl flooring problems ? There's underlayment stuff for concrete slabs that provide a smooth base for whatever flooring you pick, might cost a bit more but sure saves installation time.
The framing crew misread the plans. Thats why they corrected immediately with no cost to me. We paid for underlayment. My understanding is The LVP expands and contracts with different temperatures.
Good video. Thanks for doing this. It’s possible to trim the Architect cost, through prebuilt online architectural services for basic designs as this. The $7000 paid to the architect appears very high, even for California. Obviously the more detailed and complex design would typically require a good local architect.
Do those online services also include engineering, submitting to the city, and title 24? Although I may have paid more, I was really happy with my architect services because they handled everything for me.
Who was your contractor? I am considering a 1200 ADU too on a 10K lot in LA. $285K is considerably affordable when you compare it to homes going up for sale for $800K!
Good info. Definitely should be water tight before electrical starts. Even in California, if you get rain, inspector might have you redo everything. Also, better to have sheathing all nailed off before running pipes and wires. 10% down is illegal in California. Max they can get is 10% or $1000, whichever is less.
That is on the signing of the contract, the following day you can ask for whatever amount you agree on. Money has to exchange in CA for a contract to be legal.
6:10 So you had to move the height of your windows because your architect's drawing wasn't up to code. Is this common? You would think most architect software would set legal code heights for things like Windows. 10:50 "Inspectors caught a bunch of mistakes" Was this because of the drawings being wrong or contractor mistakes? Once again a window was installed too low, was this a drawing mistake that had already been approved by the city? 11:40 I didn't know you could frame walls in California without sheathing. Thank you for this awesome video, the interior looks amazing!
6:10 - the framers did not frame according to the plans. 10:50 - one of our windows was drawn too low. Not sure how it passed the earlier inspections though. The inspector process to me is quite haphazard in our city. Different inspectors each time. Kind of felt like, if they were having a good day, no corrections. Thank you for the feedback and watching!!
Was the solar system included in the $285K price? How about A/C and heating? Were they included as well? Did you have a scheduled timeline? And did you act as your own general contractor?
Solar & AC and heating - yes. Solar was not included in the bid. My GC had a rough scheduled timeline. No I was not my own GC. I recommend getting a GC so they can manage subs & inspections.
Sure did. Modular was not as cost effective per sqft, long wait times due to investory shortage, and had limited designs. I would have still had to find a contractor to do the site prep & install.
Hi 👋, great video thanks. You mentioned that you were financing the $285k. What did you use to finance this cost? I thought banks wouldn’t provide a loan to finance and had to be cash ?
Did you look into purchasing a prefab unit and having it placed on your lot rather than building directly? There are some interesting options out there but they obviously don’t include site prep costs.
Prefab was significantly more expensive with long times. I did a lot of research and decided against prefab due to cost, time, not to mention, you still need a GC to site prep and install. I am in a few ADuU groups and seen too many horror stories of deposits sent for prefab and then the prefab companies going out of business too. Maybe this has changed since it's been a few years since I completed my ADU but it made more sense for me to not go with prefab.
@@DarrenTsai_ Ok i used Villa homes 1000sf3/2. Got many bids and couldn’t touch turnkey at $340k HUD compliant so no solar or sprinkler needed, ( here) PGE cost me 9 months unfortunately. You did great at 280 👍🏼
@@tomdemeo2708 Yea, when I got bids from the all in one companies (design, engineering, construction), they didn't include solar and the lowest bid was $380k. I also felt like much of their work was going to be subbed out anyways because they sent different contractors during the bid process but said "all our crews are in house"....
Great question!! I was with an architect over the weekend and he mentioned, he is not good at estimating building costs and sometimes even gets feedback from contractors saying some of his design is unbuildable. I would say: probably - yes. Keep it simple unless you are going for some super luxury or high-end home. 🏡
how does that impact your address like splitting out utilities (water/electricity/etc) or entrance to the adu? same for property taxes. do you get a separate bill or is does your property get re-assessed?
Is it worth paying extra for the raised foundation instead of slab foundation? My current house is slab and it is so hard to change out the drainage pipe, and water proofing the slab foundation, especially rain falls accommodating at certain side of the house. Thanks
I’m in the planning stage myself. I pretty much know what I want and I’m meeting with contractors to gauge the cost. You got to build a two story 1400 SQr ft home for under $300k. Were you impacted by the COVID supply chain issues and if so what was the cost impact?
Congrats! Where you building? Yeah - 1200sqft detached ADU. Sort of. My contractor said the cost of lumber was more expensive but I think he ate the change in cost because he didn't hit me with any change orders. The only covid supply chain issues were delays in materials. I want to say we bought something and we were tracking it and it was just in a cargo container in long beach port lol
How much did your property assessment increase and the subsequent increase in taxes? Insurance increase? Viewers have to keep these ongoing costs in mind when determining future cash flow.
I don't think so. You may save some in design fees but your site plan will probably still be different. DM LAlotplans on instagram. He's ex LA plan checker and can probably help answer this better than me.
@@L1ne3 If it's not an ADU you'd have to factor in the cost of the land. Also this price is probably before home prices went through the roof in 2022/2023 and interest rates were below 3%.
Probably cheaper because it's less sqft? Also, you won't be paying for stairs, stair rails, flooring for stairs so that for sure will be a cost saving.
congrats your ADU for 3bd./3bth in OC, CA for only $275K (plus a low 4-5% apr) is a steal now. Plus this was before inflation peaked at 9% so most materials including labor were cheaper. Were looking now in Fountain Valley and for a 3bd, 2bth, 1200sqft its about $340 (at a 7-9% apr)
Did that $7000 from the architect include Structural Engineering or Title 24? How did the city allow a 2 story as most ADU height requirements are 16' ?
@@DarrenTsai_ Wow. $7000 for design, Structural, Title24 & addressing city corrections? That definitely is a friends & family price, or a clueless architect. But it's not surprising, I have known many Architect that suck at business & shortchange themselves. In the I.E. the five or so architects AND draftsmen! I know do not charge less then $10,000 for a new 1200sf one story ADU. Two story And in OC it's usually much higher. Not doubting or trying to insult, just passing on my experiences & observations. The hardest part is not the design or even creating the plans, it's dealing with the bureaucracy of the city development departments.
Let me guess : It costs double what you would pay 100 mi north in Kern County, and 10X what the identical structure would cost in Tijuana ( with no permits ).
@@DarrenTsai_ Wait, I realize my statement was a bit unfair ( Although construction is cheaper in a no-permit environment). More to the point, in Kern County there are huge numbers of Modular dwellings; in many cases the entire structure built in a factory and trucked in. Perhaps L.A. residents should ask : "What if my ADU were Modular ?"
If you financed the $285k, what is your monthly payment with insurance and taxes? You said you get $4200 a month. Also, you could afford to not collect rent on it, so obviously you have the means to not be concerned with it being vacant for a year after financing it first $285k
the monthly payment changed depending on the draws because we have a HELOC. right now, it's about $2k/mo though. When rates were in the 3's, our payment was between $500-$1,200 depending on the draw amount. We decided to try midterm rental and got $4,150 and most recently $4,300 for 3 months terms.
Hi Darren, just found your channel. Could you introduce me to your architect. We're wanting to build an ADU at home in San Diego. Already confirmed feasibility and got survey. Just need ADU plans. We have a very clear idea of what we want. Just need someone to draft and help get approved. How can I connect with you?
Dude this is crazy..my buddy pulled permits blueprints approved spent amazing mong on 2 garage below on cement rebar strong walls to hold upper loft ..fire rating driveway ramp ready to finalize..and inspectors never the same guy..he's ready for set finish .so blueprint there was loft day room upstairs and garages..he makes him install a kitchen..what now..he ended up with one garage and a kitchen with the strongest concrete floor .and no money..
That's a great question. I was also confused why I had to pay a school developer fee. These fees are typically charged to help fund the construction or expansion of school facilities needed to accommodate the increased student population.....the middle school a block away is actually being fully rebuilt so I guess the fees are really getting put to use.
luckily you did not get scammed by that tiny homes company; the story is the bond for them was only 25k and they took 100's of thousands from ppl and 4mil debt then filed for bankruptcy.
I am genuinely interested what is the reason behind all the complications and nit picking from the cities? Do they not have specific law and requirements architects can follow? It almost feels like the cities and gov in general are justbpower hungry control freaks that are just their to make our lives miserable for trying to improve
The inspectors may power trip a little bit. Overall, their job is to make sure the contractor builds to the architects drawings. This doesn’t always happen.
This is just sad. ADU’s shouldn’t even be a thing in this country, especially ones that lists for like 150k - 200K. But I get it - hyper inflation, down economy, etc. Still, if it really has to come to that, you can just buy a decent sized Tuff Shed for far less and build it up to code. I’ve seen some that look almost like miniature houses, complete with a full set of stairs leading to a second floor with windows.
Join our ADU FB Community:
facebook.com/groups/771648554962233/
I made this community because the other groups were filled with spam from contractors.
Good information on costs and timeline. Didn’t realize or think about solar requirements. Thanks
@@StuartMiller-n2z thank you
Great video showing the cost breakdowns, and describing your process. We are scheduling our MEP inspection this week and hope to finish our ADU in February. We budgeted $250/sqft and were going to easily compete the project for $150/sqft.....UNTIL.... The first electrician failed to sign us up for PG&E connection and design, as per our contract, and this led to the following concerns: 1. Delayed review of electrical needs/design/easements/etc. 2. Determination of interference with easement requiring a relocation of the foundation. 3. Due to that, the City approved initial plans, without knowing the easement conflict (which was still the City's responsibility to know/address). 4. Redesign by Architect (no charge). 5. Resubmittal to City (additional fees). 6. A full 2.5 month delay in overall scheduling. Therefore, we didn't get our permit during my 7 months off of my main job, so I could only do 1/10th of the planned solo work and had to hire contractors for the other 9/10th. However, we are on target to complete this project at around $191/sqft, let's say $200/sqft now that my wife knows we have room for some extra upgrades that we previously discussed. I am 100% confident that my original goal of $150/sqft is attainable, even scaled up, if I could do the work I had planned. I fully realize that the timeframe would extend, but saving $50/sqft is a LOT of money. Our next build will be a new construction build of a Vacation/Retirement home in the mountains. This will be budgeted at $300/sqft, with an anticipated $200/sqft actual price due mainly to the distance from materials and labor sources. Our future neighbor built his for $187.50/sqft, but he has his primary residence within 20 minutes of his new build. Thank you so much for your openness on your build, it has been very helpful for us.
Wow!! that's really impressive. That's a pretty big cost saving because you are doing some of the work yourself!
Are you also in California? What trade are you in?
@@DarrenTsai_ I am in California, sort of near you. I never signed up for Facebook ever, until 2 months ago, but they denied me saying I wasn't me. No appeal. Anyways, I can't join your group, but would gladly reach out to you in another fashion in an attempt to share more knowledge. I spent most of my life as a licensed Water Well Driller, focusing mainly on environmental cleanup of gas stations underground tanks, military base cleanup, etc. However, I also worked that career alongside a Geotechnical Engineering company and engineer. I have been closely exposed to every trade it takes to build a home from the bare ground all the way through completion. I ONLY do everything to code, even if it doesn't require a permit (shed under 120 sqft). I do everything I can correctly, then hire a licensed professional to verify the work and that allows for inspections to go very well. I am working on a business plan to help average people manage their own work to save the 20%-25% markups generals get. I don't want to spill the beans on everything but wouldn't mind sharing more privately. My wife introduced me to you, as she loves your content.
I just spent $1.4M on a home renovation in Fallbrook, CA. $250K was spent on just the deck.
This was not a hugely complicated renovation and I did a ton of material procurement, design, subcontracting myself.
Spending less than $300K on an entire ADU including all fees? You should be dancing in the street right now. Well done.
WOW!! was the deck that expensive because it was on a hill and needed foundation?
Also, are you a STR operator? would love to connect via email and hear your experiences running STRs
@@DarrenTsai_ I am a STR operator, feel free to ask any questions
@@yufliu Are a lot of STR operators getting out because Airbnb is cracking down in many cities?
I see a lot of airbnb operators moving towards boutique hotels now.
@@DarrenTsai_ depends on the market but I don’t really see it happening too often. Most people are converting to midterm or just doing it under the table. A lot of people are getting into boutique hotels because of the benefits since it’s commercially zoned and are more scalable but also a lot harder to find
My wife is an architect. You can get blueprints done cheaper with a drafter but will likely be spending much more time going back and forth with the city for permits so it's going to be a tradeoff of time spent waiting. Seems costs vary wildly with contractors so it's good to get quotes from a couple and hopefully go with one who seems reputable. The good ones tend to be busy so it's not a easy process.
Yeah, this is also why I recommend an architect who knows the city well.
@@DarrenTsai_$7k is very cheap for a $285k project. I’m an architect. Kudos.
Thank you for this! 👍🏻
@@jeromeusa Do you usually charge by sqft or how does the rate / cost change for plans?
@@DarrenTsai_ $/sf is just one, albeit popular way to estimate. I sometimes look for potential complexities…or simplicities to adjust my estimate
I am almost done with my backyard ADU in Sacramento, CA. My total cost is $200K for 2 BR, 1 BA 740 sq ft house.
Congrats!! That sounds like a great price for a project of that size but I also don’t know what the rates are in SAC. Are a lot of people building ADUs up there??
@@DarrenTsai_ The rates are much higher depending on the contractor. I think ADU are being built in Sacramento from what I am hearing and the work that is being pickup from plan designer and other contractors.
It would have been cheaper if I didn't spend $24K on cement walkway last week. The original bid was $158K. It grew to $175K. And finally settled right below $200K after I cemented the area, along with a walkway to the front of the house..
@@mikef2811I’m from Sacramento too, who did you use to build the ADU? I’m currently looking
Same lmk @@mikef2811
That sounds awesome! I'm moving back home to Chico next month and looking to build 650ish sq ft
Thanks for making this video. It really helped me get a better understanding of the CA ADU process/timeline. We have 3.5 acres in Nor Cal and the property is sloped. We wanted to have a manufactured home delivered to speed things up but the slopes and powerlines prevented that. We need to build the ADU onsite like you did. Because we're out in the country, we also have to have a new septic system installed. I haven't been able to get a straight answer on actual timelines and costs so this helped a lot. In our County they offer some free pre-approved plans but not sure I like them. I wish your contractor was local because it sounds like your project went pretty smoothly. Thanks again for putting this info together.
Congrats on owning 3.5 acres!! that's amazing. My understanding talking to contractors and homeowners (no actual personal experience) is that the foundation work + earth work (site prep) is a huge cost for building on a slope. The architect/designer and engineer will have a big part in the success of your project because of those foundation calculations too. Best of luck with your project!
Great details in this video for a future investor about to do a ADU...Which is me. Thanks!
Love to hear it!!
Thank you for the complete breakdown of the cost of the ADU
Happy to share! Hope this video helps in your ADU journey
Wow you sent that contractor home with no money!! Great job
@@moisestrujillo4591 i didn’t haggle on price. It was the bid he sent me. Do you ask to pay more when people give you a price?
Awesome that you got a great deal.. but your numbers aren’t realistic you are misleading people.. how close was his number to the other three bids you got?
@ he was in the middle. Keep in mind, this was 3 years ago & did not include most finish materials
@@moisestrujillo4591 todays price is significantly higher and when people ask me I tell them that
As you can probably tell, im a contractor and i have to deal with the damages this type of content causes when we have to break down the news of real cost. You should include the disclaimer of inflation and regulations.. save the adu hopefuls some trouble
Great video Darren! Thank you for the breakdown regarding ADU and being so sharing with your 360 experience! Very appreciated!
Thanks for watching & the feedback!
Great detailed video! Thank you for the tips and for the work you put in to make this video!
Thank you for watching & the call Marco! Pleasure chatting with you today
Contractors are overcharging for these little units. I can beat any written quote here in so cal. 3-4 months turnaround from time permits are issued.
Post your contact and license # so ppl can contact you
This has been extremely helpful. Thank you for all the information. I’m planning on building an ADU and will be sure to email you
Awesome! I'm here to help
@@DarrenTsai_can you share who you used for a contractor please
Hell ya Darren... excellent video. trying to DIY an ADU project in long beach and basically using friends to do as much as possible since this is a friend doing his 1st ADU on his 1st house trying to make the property an income property in the future. WE hired people for foundation and framing and roofing. So a couple of his FRIENDS are handling everything else. Which we had to correct a few mistakes along the way. like you an eye opening experience of reality and time and the over all real cost of an ADU project. we regret not filming and noting everything that it takes to complete a project like this for the 1st time like we said we were going to do. Shot out to you for making this video..." THERE WILL ALWAYS BE THAT LEARNING CURVE FOR THE VERY 1ST TIME" always keep that in mind... THANX!!!!.... OH YA... total cost projected as of now is around $170,000 for a 750 square ft. unit in the Wrigley district in Long Beach, CA
Wrigley is up and coming!! great spot for an ADU. I appreciate your comment and the feedback. Did you like your contractors? There are so many hidden costs building an ADU for the first time. $170k for 750sqft is a great cost!
This price per square foot is really really good for California! You did a great job… no way you could have done this for less than 350k in the bay! My utility hookups where 30k school impact fees 22k and permit fees 12k… cheaper at quote I got after searching for months was $320 per sqft.
Wow!! Thats a big difference in just utility and impact fees. Thanks for the feedback!
Good for California because all the greedy politicians hands in everything. Lumber tax, title 24...permit and school fees, All making costs much higher than other places in the country....WTF is with the fire sprinkler laws too? Not just because it is in sunny CA.....it is very political....In the early 2000s I could have a contractor build a house for 90k now over 400...that is not just inflation. same house....it is all about the cost of Liberalism. is it worth it .....ask a homeless person.
@@DarrenTsai_can you please share contractor info?
@@luis2flr email me
Thank you for this video! Very detailed and broke down your timeline in a very easy to understand way. And the costs, thanks for including it, hope it's still that cheap when I build one
You're very welcome!
Thanks for sharing all this information. Showing step by step was very insightful 👍🏼
Happy to share! Good luck with your ADU
Crazy how prices have gone up. I had built an 800sq ft ADU in orange county back in 2018 and it was $116k all in.
Dang. I missed the boat but better late than never haha
Jason, can you share your contractor? lol
Sorry I think he moved to NorCal since Covid. I havent spoken to him in a while.
@@jasonsongs7678 Tell him to move back and build us more ADUs lol
@@jasonsongs7678 I have friends in NorCal, where in NorCal? Might send my friends his contact
Very good video. Especially for those of us from California. Rare to see
Thank you for the kind words. I try to provide full transparency in all my videos.
Awesome!!! Thanks for sharing
my pleasure!! hope this helps!
Thanks for sharing. Helpful
Thanks for watching and leaving feedback!
Very educational video, thank you very much for your time.
Super helpful! Was thinking of building ADU unit as well!
Curious why you didn’t do one of those already built ADU? Also how did you decide 3/2 bedroom is the right size/clientele you were renting out?
We designed with family in mind first.
We did a 3 bed 3 bath with a tub downstairs for families kids. And then upstairs two primary suites with their own bathrooms for convenience.
I read too many vendor issues with already built and cost was going to be more per sqft for the modular & prebuilt ADU. Still need to hire contractor for site prep & install. I think They would have had to crane the unit in too.
Great video Darren! Just wondering why you didn’t go manufactured ADU? Was it something you looked at?
Thanks for the kind words Don! I explored manufactured and at the time there were supply chain delays issues. The modular/prefab companies were more expensive and less customizable. I’ve also seen in FB groups, a lot of those companies have gone out of business leaving customers to dry. I haven’t dug deep to confirm that though. Have you gone through the process and completed a prefab or modular ADU?
What are things needs to be checked during the inspection?
That construction was done to the drawings and things are to code. The list would be too long to type everything out here.
Atleast, few in broader sense
@@rajantbi Electrical, Plumbing, Framing, HVAC, Insulation, roof, solar, foundation
Thank you so much 😃👍
Thank you for making the video. A lot of detail information. You mentioned that you financed the whole. What kind of loan did you used?
I used a HELOC. When rates go down, we may do a cash out refi though. Email me if you want more details.
Thanks for this video. Had a lot of useful info. You mentioned corrections to the construction and having to move some windows (too low?) - I'm wondering if the architect's drawings were correct or the contractor didn't read the dimensions right ? I don't agree that those things just "happen". The vinyl flooring problems ? There's underlayment stuff for concrete slabs that provide a smooth base for whatever flooring you pick, might cost a bit more but sure saves installation time.
The framing crew misread the plans. Thats why they corrected immediately with no cost to me. We paid for underlayment. My understanding is The LVP expands and contracts with different temperatures.
Thanks for the feedback!!
Excellent video Darren! I am wonderring if you would share the contractor, the architect for your ADU references? Thanks!
Send me an email Darren@RealDarrenTsai.com. Ill get you all the info you need
Good video. Thanks for doing this. It’s possible to trim the Architect cost, through prebuilt online architectural services for basic designs as this. The $7000 paid to the architect appears very high, even for California. Obviously the more detailed and complex design would typically require a good local architect.
Do those online services also include engineering, submitting to the city, and title 24? Although I may have paid more, I was really happy with my architect services because they handled everything for me.
Who was your contractor? I am considering a 1200 ADU too on a 10K lot in LA. $285K is considerably affordable when you compare it to homes going up for sale for $800K!
Hey Felipe, congrats on the 10k lot in LA!!! Email me!
Beautiful! Appreciate your sharing tips!
Thanks for watching!
Thank you! Interested in building one on our property too!
Go for it!
In my neighborhood, the cost per square foot is between $350 to $500 so you did really good.
Thank You!
Good info. Definitely should be water tight before electrical starts. Even in California, if you get rain, inspector might have you redo everything. Also, better to have sheathing all nailed off before running pipes and wires.
10% down is illegal in California. Max they can get is 10% or $1000, whichever is less.
That is on the signing of the contract, the following day you can ask for whatever amount you agree on. Money has to exchange in CA for a contract to be legal.
6:10 So you had to move the height of your windows because your architect's drawing wasn't up to code. Is this common?
You would think most architect software would set legal code heights for things like Windows.
10:50 "Inspectors caught a bunch of mistakes" Was this because of the drawings being wrong or contractor mistakes?
Once again a window was installed too low, was this a drawing mistake that had already been approved by the city?
11:40 I didn't know you could frame walls in California without sheathing.
Thank you for this awesome video, the interior looks amazing!
6:10 - the framers did not frame according to the plans.
10:50 - one of our windows was drawn too low. Not sure how it passed the earlier inspections though. The inspector process to me is quite haphazard in our city. Different inspectors each time. Kind of felt like, if they were having a good day, no corrections.
Thank you for the feedback and watching!!
Great info. This made me estimate what it may cost me in Los Angeles
Glad it was helpful!
Was the solar system included in the $285K price? How about A/C and heating? Were they included as well?
Did you have a scheduled timeline? And did you act as your own general contractor?
Solar & AC and heating - yes. Solar was not included in the bid. My GC had a rough scheduled timeline. No I was not my own GC. I recommend getting a GC so they can manage subs & inspections.
I was going to get a 1000 sq ft ADU in California, but the cost was too high basically about 230 grand.
Are you able to finance the build?
This is great!
Thank you
… a cemented level piece of land,
utilities installed & a airstream!
Would be The Dream! 🇺🇸🗽
I love that. Even better, a piece of land surrounded with trees and a stream, and then a cemented piece of level land with utilities.
Did you ever consider a modular build vs stick build?
Sure did. Modular was not as cost effective per sqft, long wait times due to investory shortage, and had limited designs. I would have still had to find a contractor to do the site prep & install.
Hi 👋, great video thanks.
You mentioned that you were financing the $285k. What did you use to finance this cost? I thought banks wouldn’t provide a loan to finance and had to be cash ?
We used a HELOC. I just released a video regarding the financing options for ADU.
Thank you so much for the feedback! feel free to email me too.
Did you have to get a fire sprinkler system?
No, mine did not. Please don't set it on fire 🤣
Hi what city is yours in. Is it difficult for the second story
Email me
was the Certificate of Occupancy hard to get?
We had some final corrections but no
Is solar mandatory?
Would rebuilt frames be more cost effective?
In california - yes. Solar is mandatory. Maybe but I didn’t order the lumber for framing
Excellent video !!!!
Thank you very much!
How many guys on the framing crew
3-4 on the framing crew
Site survey and soil report are not required.in Orange county?
Depends on the footprint of ADU and location. My did not require either but many will require both.
@@DarrenTsai_ thanks, very informative video. In San Francisco, they require both which are pretty expensive.
@@tchowcpa ahh yes. I have a few friends who live in SF and say the building process is not that simple. I appreciate the feedback!
Did you look into purchasing a prefab unit and having it placed on your lot rather than building directly? There are some interesting options out there but they obviously don’t include site prep costs.
Prefab was significantly more expensive with long times. I did a lot of research and decided against prefab due to cost, time, not to mention, you still need a GC to site prep and install. I am in a few ADuU groups and seen too many horror stories of deposits sent for prefab and then the prefab companies going out of business too. Maybe this has changed since it's been a few years since I completed my ADU but it made more sense for me to not go with prefab.
I did that and was $350 for 1000sf no solar or fire sprinkler. Including all appliances turn key
@@tomdemeo2708 How did you like the prefab option?
@@DarrenTsai_
Ok i used Villa homes 1000sf3/2. Got many bids and couldn’t touch turnkey at $340k
HUD compliant so no solar or sprinkler needed, ( here) PGE cost me 9 months unfortunately.
You did great at 280 👍🏼
@@tomdemeo2708 Yea, when I got bids from the all in one companies (design, engineering, construction), they didn't include solar and the lowest bid was $380k. I also felt like much of their work was going to be subbed out anyways because they sent different contractors during the bid process but said "all our crews are in house"....
bro this is very helpful
Glad this video helped. What other ADU questions do you have?
What are the dimensions of the building?
Super helpful! Thanks! The building looks pretty straightforward, do building costs skyrocket if the design is more artistic?
Great question!! I was with an architect over the weekend and he mentioned, he is not good at estimating building costs and sometimes even gets feedback from contractors saying some of his design is unbuildable. I would say: probably - yes. Keep it simple unless you are going for some super luxury or high-end home. 🏡
@@DarrenTsai_ thank you sir!
how does that impact your address like splitting out utilities (water/electricity/etc) or entrance to the adu? same for property taxes. do you get a separate bill or is does your property get re-assessed?
We didn't split out utilities. You have the option to though. Our city makes us get separate address but property still gets reassessed.
@@DarrenTsai_ Thanks for the info and great video by the way! Very informative.
@@DerikTran Thanks for the feedback! I am going to create more case study videos like
Super helpful!!
Glad you thought it was helpful!!!
Is it worth paying extra for the raised foundation instead of slab foundation? My current house is slab and it is so hard to change out the drainage pipe, and water proofing the slab foundation, especially rain falls accommodating at certain side of the house. Thanks
Ask your local architect, they will be able to better answer the question. ask the contractor for the cost difference too.
I am in the process and the prices have gone up.
By how much?
Thank you for the very informative video. Do you have a contractor that you can recommend? I am in Walnut/Rowland Heights area. Thanks.
I don’t personally have one. I can ask a friends who have projects there though. Email me.
I’m in the planning stage myself. I pretty much know what I want and I’m meeting with contractors to gauge the cost. You got to build a two story 1400 SQr ft home for under $300k. Were you impacted by the COVID supply chain issues and if so what was the cost impact?
Congrats! Where you building?
Yeah - 1200sqft detached ADU. Sort of. My contractor said the cost of lumber was more expensive but I think he ate the change in cost because he didn't hit me with any change orders.
The only covid supply chain issues were delays in materials. I want to say we bought something and we were tracking it and it was just in a cargo container in long beach port lol
Very helpful.
Thank you!
How much did your property assessment increase and the subsequent increase in taxes? Insurance increase?
Viewers have to keep these ongoing costs in mind when determining future cash flow.
You can email directly for details
thats a big house! i thot adu's were like 400 sq ft!! pretty cool
a lot of ADUs are 400sqft garage conversions! There are detached ADUs up to 1200sqft though
Would there be substantial cost and headache savings if I go with LA counties pre approved “You-ADU” build plans?
I don't think so. You may save some in design fees but your site plan will probably still be different. DM LAlotplans on instagram. He's ex LA plan checker and can probably help answer this better than me.
$285,000 for a 3 bedroom house is cheap in California.
ADU might be the way to go!
I tried it and it cost $350k
Can you share who you used for a contractor ?
Try buying a 3 bedroom house for 285k haha
@@L1ne3 If it's not an ADU you'd have to factor in the cost of the land. Also this price is probably before home prices went through the roof in 2022/2023 and interest rates were below 3%.
Which builder did you use? We are using Pi Group and Anchor Builders seem pretty good too.
T&H construction company. They are a small local contractor. Is Pi group your architect?
@@DarrenTsai_
Yes.
Just curious is it cheaper to do a single story if so by how much and why didn't you do it Thnx !
Probably cheaper because it's less sqft? Also, you won't be paying for stairs, stair rails, flooring for stairs so that for sure will be a cost saving.
Not true. You will have to pay more for concrete
Thanks! ❤
congrats your ADU for 3bd./3bth in OC, CA for only $275K (plus a low 4-5% apr) is a steal now. Plus this was before inflation peaked at 9% so most materials including labor were cheaper. Were looking now in Fountain Valley and for a 3bd, 2bth, 1200sqft its about $340 (at a 7-9% apr)
Yea, feeling grateful we did this a few year backs considering prices now
Hernandezign does nice work! Nice ADU
Thank you 🙏🏽 does Hernandezign have any case studies I can feature? Email me 📧
No thanks. We prefer the Chinese connection. 😂
Did that $7000 from the architect include Structural Engineering or Title 24? How did the city allow a 2 story as most ADU height requirements are 16' ?
Yes. Included everything. Some cities allow 2 story ADU and some cities don’t.
@@DarrenTsai_ Wow. $7000 for design, Structural, Title24 & addressing city corrections? That definitely is a friends & family price, or a clueless architect. But it's not surprising, I have known many Architect that suck at business & shortchange themselves. In the I.E. the five or so architects AND draftsmen! I know do not charge less then $10,000 for a new 1200sf one story ADU. Two story And in OC it's usually much higher. Not doubting or trying to insult, just passing on my experiences & observations. The hardest part is not the design or even creating the plans, it's dealing with the bureaucracy of the city development departments.
Let me guess : It costs double what you would pay 100 mi north in Kern County, and 10X what the identical structure would cost in Tijuana ( with no permits ).
Probably? I have no clue how much it costs in Kern or Tijuana but I’m sure labor is way more expensive here
@@DarrenTsai_ Wait, I realize my statement was a bit unfair ( Although construction is cheaper in a no-permit environment).
More to the point, in Kern County there are huge numbers of Modular dwellings; in many cases the entire structure built in a factory and trucked in.
Perhaps L.A. residents should ask : "What if my ADU were Modular ?"
omg, how time had changed; back in the 2000 my friend built a small one story 1 BR ADU in Anaheim and only cost under 50k 😂
permitted too? that is amazing!!
If you financed the $285k, what is your monthly payment with insurance and taxes? You said you get $4200 a month. Also, you could afford to not collect rent on it, so obviously you have the means to not be concerned with it being vacant for a year after financing it first $285k
the monthly payment changed depending on the draws because we have a HELOC. right now, it's about $2k/mo though. When rates were in the 3's, our payment was between $500-$1,200 depending on the draw amount. We decided to try midterm rental and got $4,150 and most recently $4,300 for 3 months terms.
This is awesome!
You’re awesome! Thanks for watching. What other ADU questions do you have??
Hi Darren, just found your channel. Could you introduce me to your architect. We're wanting to build an ADU at home in San Diego. Already confirmed feasibility and got survey. Just need ADU plans. We have a very clear idea of what we want. Just need someone to draft and help get approved. How can I connect with you?
My architect doesn’t know San Diego. Let me ask around but you can email me at darren@realdarrentsai.com
Dude this is crazy..my buddy pulled permits blueprints approved spent amazing mong on 2 garage below on cement rebar strong walls to hold upper loft ..fire rating driveway ramp ready to finalize..and inspectors never the same guy..he's ready for set finish .so blueprint there was loft day room upstairs and garages..he makes him install a kitchen..what now..he ended up with one garage and a kitchen with the strongest concrete floor .and no money..
Email me the details- I don’t think I fully understand
How many bedroom and how nice did you build it cause 4,200 to live in someone else’s backyard
Theres photos of the interior in the video
Who was your architect and contractors?
Email me
What does a school district have to do with building on your property?
That's a great question. I was also confused why I had to pay a school developer fee. These fees are typically charged to help fund the construction or expansion of school facilities needed to accommodate the increased student population.....the middle school a block away is actually being fully rebuilt so I guess the fees are really getting put to use.
What’s the California lottery for. Isn’t the lottery money go toward schools.
@@JohnDoe-yr8ol Great question. Supposedly 95 cents of every bought ticket goes to public schools. I don't know how we can fact check that though.
How did you get financing and did you refinance?? What lender or banks??? 🤔
Send me an email, and ill try my best to answer your questions
Hi looking for extension in my existing home can you help us. looking for reliable contractor
Yes! I think you emailed me. I will respond!
If you got your final certificate b4 December, your new tax amount would be due in the following year. Slowing down to January was a good idea.
luckily you did not get scammed by that tiny homes company; the story is the bond for them was only 25k and they took 100's of thousands from ppl and 4mil debt then filed for bankruptcy.
YIKES!!! I heard about this. there is also another one, multitaskr, that went backrupt today in San Diego!
What city?
email me
Who did you use?
Email me!
3 bedroom 3 bath! That’s big
Yea, It is a decent size. Thanks for watching!
That's not the purpose of ADU's.
@@harveypaxton1232 What is the purpose of them?
@@DarrenTsai_ One bedroom one bath in-law quarters. Not turn a nice R-1 neighborhood into an R-3 with no parking.
@@harveypaxton1232 that's what SB-9 is for 🤣 I promise you our ADU is not hurting the value of my neighborhood & we don't plan on moving.
what city is this to see if I can use your contractor
I am in Orange County. Email me
How did you get financing?
Heloc. Would it be helpful if I made a video on different ADU financing options?
@@DarrenTsai_ who did you use for your contractors?
@@danz1lla1 Email me!
what about your property tax now, how much more will it be?
There was a supplemental tax bill of about $1k
Wow!! Rent of $4,200 /mo? Where is this?
Orange County, CA
Wow a contractor all in was $200 a square foot? Hard to believe all in??
Solar plus all appliances window covering and tile?
No, that did not include solar, tile, or window covering. Just labor and raw materials
I am genuinely interested what is the reason behind all the complications and nit picking from the cities? Do they not have specific law and requirements architects can follow? It almost feels like the cities and gov in general are justbpower hungry control freaks that are just their to make our lives miserable for trying to improve
The inspectors may power trip a little bit. Overall, their job is to make sure the contractor builds to the architects drawings. This doesn’t always happen.
Would love to get some referrals maybe your contractor I’m trying to build a pretty good size project in Yorba Linda. How can I contact you?
email me at dtsaihomes@gmail.com
Wow your adu is almost as big as my single family house in Hayward😂
Can you refer me this contractor? Thanks
Email me
This is just sad. ADU’s shouldn’t even be a thing in this country, especially ones that lists for like 150k - 200K. But I get it - hyper inflation, down economy, etc. Still, if it really has to come to that, you can just buy a decent sized Tuff Shed for far less and build it up to code. I’ve seen some that look almost like miniature houses, complete with a full set of stairs leading to a second floor with windows.
What should ADUs be instead? I don’t understand “lists for $150k-$200k?” Did you mean costs?
All it takes is one tenant to f u up 6k with 6 + months of eviction. 1 in 5 still risky business.
Yea, that’s the risk of renting and being a landlord
See all these ADUs built and rent out in SoCal. NOT WORTH IT!. lots of headaches.
@@cowdiewynn8427 yeah. Being a landlord is not for everyone. Also, lots of people building this for family use
Hi Daren
Can you refer you contractor please?
Send me an email
I specialize in the design of ADUs and additions in So cal with better price.. Let me know.
Are you a draftsman or architect?
Architect.
@@ausquiano29 How many ADUs have you completed?
@@BrutafulStudios01 approx 30 i would say
@@ausquiano29What's your website? I'd like to see examples of your work