When building an accessory dwelling unit, or ADU, you may be wondering if it’s worth the investment. 

It’s difficult to calculate if an ADU will be a good investment. In some cases, you won’t know until you decide to move or sell the property.

Let’s take a look at some key questions to ask yourself before building an ADU.

Did you go through the proper legal matters, plans and permits? This is very important if you’re ever planning on selling or refinancing your property. If you didn’t make the property lawful, it will prevent lenders from lending money. 

You will also have to worry about code enforcement. Without the proper permission, you can count on having to pay fines and/or remove your ADU from your property, depending on the current laws of your city. 

Zoning ordinances can sometimes get confusing with all the jargon, so don’t hesitate to get a lawyer if you need to.

After making an ADU lawful, is it worth it? You have the zoning ordinance, now look and see which restrictions or requirements the government will ask. Below are three common items you will see on a zoning ordinance.

Is there additional parking that will need to be built?

Are there specific instructions on the location of the detached ADU?

Did they approve an attached ADU, but not a detached?

If the zoning ordinance made it to where you cannot feasibly build an ADU, seek out a variance. However, this can add cost and it’s not guaranteed. It’s best to see if it will work to build an ADU on your property if not, there are other options.

 

How do you find out exactly how much to rent it out for? Finding solid, reliable data on this may be tricky. It’s important to do the research in order to see your return investment. 

There are some real estate agents that deal with investment properties. You can also talk to other property managers, property owners, and your local craigslist to get some ideas on what property in your area is going for.

Are you financing the ADU construction? Of course, if you have the cash in your pocket you’re one step ahead, but not everyone is that lucky.

If you have equity on your home, you may qualify for a refinance, then be able to get the cash for the construction. If you have a steady job, with a steady income, you may be able to speak to someone about a renovation loan.

Talk with a lender first to get an estimate on the fees, because it will cost you when you start paying back the interest.

In the L.A. area, it’s not difficult to get the ADU you’ve always wanted. With some persistence, dedication, and research, you will be well on your way to the add-on of your dreams. [https://leviconstruction.com/]

At Levi Design Build we’ve dedicated ourselves to the building of beautiful homes. We pride ourselves on the quality of work over profit. Since 2013 we’ve been delivering top-notch work to our customers. Contact us today for an estimate on your ADU!

Featured Posts

7 tips to hire an ideal building contractor in Los Angeles

Not every building contractor is fit to work on every project, so before you decide, having the proper discernment will ultimately optimize your investment. The 7 most important tips to hire the ideal building contractor. 1. Know what you want and why. It may seem...

What to Consider When Planning a Home Addition

Consider these factors before planning a home addition. Every year, thousands of homeowners decide to add an addition to their home for increased living space, more functionality, or simply to add a new look to their home. But before you give the home addition the go...

Layout of A Granny Flat: Essentials Of The Unit

Granny flats are self-contained living units on a property that are a part of or separate from the main house. Granny flat is just another name for an ADU (Additional Dwelling Unit).  People, not just grandparents, can live in a granny unit independently and...

How to Prepare for a Whole House Remodel

Where to start when preparing to remodel your whole house. Are you ready to remodel your aging home but aren’t sure where to start? You’re not alone. Many homeowners in California look to update their homes to keep up with the changing styles, safety features, and...

Dos and Don’ts of Home Additions

Building the Best in Home Additions As families grow and needs change, a home can start to feel compact and inadequate. While the option of moving home isn’t available for everyone, there are some great home additions that can help improve the existing living space....

Tips For Decorating A Granny Flat

Accessory dwelling units, or granny flats, are becoming very popular as a way for homeowners to maximize space and even make some extra money by renting them out. While there were government restrictions on granny flat construction for a long time, that is starting...

How Much Does A Garage Conversion Cost?

If the size of your family has increased and you are desperately looking for ways to add more space, then all that you need to do is convert your garage into a living area. Converting your existing garage into a new living space is a prudent way to add more space for...

Designing a Floor Plan for Your California Home

Map out your perfect home with the help of Californian design and building experts Designing your own dream home is a significant and daunting task. While you may have many ideas you want to incorporate, you also need to be practical and work within a budget to create...

How to Build a Renovation Plan to Match Your Budget

Stay on target with your budget when renovating your property. When it comes to home remodels, homeowners may feel they have little influence on whether the project stays on budget and is finished in time. However, you may have more control than you think. The scope...

Why Homeowners Need Guesthouses

Homeowners turn to a general contractor to help them build an accessory dwelling unit (ADU). More and more homeowners are seeing the value of adding guesthouses, often called accessory dwelling units (ADUs), practically in California where the property is often...

The Right Choice

Contact us now and schedule a free consultation.

Reach Us

Schedule your free consultation with us today.

21118 Vanowen St, Canoga Park, California 91303

Leave A Message