LICENSED ACCESSORY DWELLING UNIT (ADU) CONTRACTOR IN OAKLAND, CA

ADUs are additional housing units that are built on properties that already have a home or dwelling on them. These tiny homes are completely customizable and come in a variety of shapes and sizes. ADUs have other names that are frequently used such as in-law suites, guest houses, or granny flats, but they all serve the same purpose and have the same type of structure. These homes have many benefits available for you and can be built on both single-family lots or multi-family lots. ADUs have their own entrance and other spaces including kitchens, bathrooms, and living areas. In addition, ADUs can either be totally detached or attached such as converting your garage. If you want a more detailed comparison of attached vs detached ADUs, click here. 

Granny flats have become increasingly popular for many reasons whether you are looking to add a guest house for friends and family or want passive rental income. Accessory dwelling units are the greatest opportunity to add value to your home while having added cash flow. ADUs can be used for many different recent which is why they have become so popular over the past couple of years. 

The construction of ADUs has never been easier since they passed a package of bills back in January of 2020. No, in California, you can enjoy this luxury tiny home and all the benefits it has to offer because of this new package of bills. Some of the new laws include the ADU permits and how they will be automatically approved for single-family homes and how they can be built on multi-family properties. 

The new laws that are put into place make building an ADU legal on a state level, which invalidates any city ordinances. Not only do the new laws permit the rebuilding of ADUs, but they make the process as a whole a lot easier. ADUs can now be built in HOAs without any hassle, and cities have to approve ADU applications within 60 days. Some of the other burdens that were lifted is that ADUs built by 2025 don't require the owner to actually reside at the property and ADUs can be developed at the same time as the primary residence. With all these new laws in place now, it has never been easier to gain permits and build the ADU of your dreams. 

It can break the bank to find somewhere to rent in Oakland with rental prices the way they are, not to mention the cost of housing altogether. The average rent cost in Oakland to rent is almost $3000 a month, while the average home costs is around $700k! So as a homeowner, one of the best investments you can make is in your home. 

With California's updated laws regarding ADU buildings, homeowners can get instant equity just by building an ADU on their property. These units offer a cost-effective way to increase cash flow. As an example, starting costs generally range from $350 to $450 per square foot, ADUs will pay for themselves! Suppose you build an ADU on your property that adds a monthly loan payment of $2000 to your existing mortgage. In this case, rent should be $3000, giving you a $1000 profit each month. You can also use your ADU as an AirBnB as another way to generate cashflow to your ADU investment. 

Another benefit is that these units add tremendous value to your home, meaning the equity of your home will drastically increase by building an ADU on your property. The equity of your home is the difference between what the property is worth and how much you still owe. Here in Oakland, your ADU will add approximately 150% of the total costs once the project is complete. AS an example, if we build a 750 square foot ADU on the property and the build costs $400 per square foot for a total of $300,000, you can expect your property value to go up by around $450,000 by the completion of the project. Talk about an instant ROI!

When you are looking at building an ADU, you will see it will cost anywhere from $350 to $450 per square foot in Oakland, Ca. Typically, as the square footage increases with your ADU the price per square foot will decrease simply because there are a lot of fixed costs associated with building an ADU no matter how big or small. The larger you build your ADU, the larger the retune on investment will be when it comes to both rental income and property value. Keep in mind, our company is a one-stop-shop and we are involved in the process every step of the way. 

Not everyone will have the cash on hand to fund their ADU building. The good news is that there are a lot of great lending options available because the banks realize how much of a great opportunity these buildings are. ADUs increase property value making it a low-risk investment in the bank’s eyes. For a more detailed breakdown of financing options, please click here. 

With nursing home costs averaging almost $12,000 a month for a private room, Oakland is an expensive place to need professional nursing care. However, you can avoid these costs while getting equity in your home by building an ADU. Your ADU can function as the perfect alternative to a nursing home so your loved ones can be close to home. 

ADU financing options typically average between $1,500 and $2000 a month (depending on the size and specifications of your ADU based on approximately $350-$450/sq ft). Compared to the $12,000 a month you would be spending on professional nursing care, you will be saving a fortune while also benefiting your family and property. In addition to the savings, you will receive with building this ADU, you will also gain more time with your loved ones while providing them a comfortable place to stay. 

An ADU makes an ideal guest house. No matter if you always have friends and family stopping to visit in need of a place to stay during their visit, or if you simply want to have a place to spend a night out of the house occasionally, ADUs are a perfect solution. In addition, even if you use your ADU as a guest house, you can still utilize its cash flow opportunities to generate passive income. For example, you can use your ADU guest house as an AirBnB and rent it out to tourists between your friends and family's visits. The typical AirBnB in Long Beach costs roughly $223 per night. So, even if you only rent your ADU out as an AirBnB about ten times every month, your loan payment will be covered by rental income alone. If you have time to rent it out more often, then you're only increasing your cash flow while providing your friends and family a gorgeous place to stay whenever they're over to visit.