LICENSED ACCESSORY DWELLING UNIT (ADU) CONTRACTOR IN SANTA ANA, CA

ADUs are an additional housing structure built on a property that already has a primary home. These small homes can come in many shapes and sizes and are completely customizable. ADUs go by many other names, including tiny homes, granny flats, in-law suites, and guest houses, but they all serve the same purpose. These homes have many benefits available for you to take advantage of and can be built on a single-family lot as well as multi-family lots. ADUs have their own entrances and other spaces such as bathrooms, bedrooms, living rooms, and kitchens. These structures can be attached to your primary dwelling or stand-alone on the property. Many attached ADUs include basement or garage conversions. For a more detailed comparison of detached vs. attached ADUs, click here. 

Granny flats have become increasingly popular for many reasons, from being the perfect guest house solution to the passive rental income they bring in. On the other hand, accessory dwelling units give you the best opportunity to add value to your home while also being able to make a profit. ADUs have a number of different recent, which is one of the reasons they have become so popular. 

ADU construction has never been easier since the new laws that took effect in January of 2020. With this new package of bills in California, you can enjoy these tiny homes and all of their benefits. Some of the new laws include that ADU permits are automatically approved for single-family homes and can even be built on multi-family lots.

The new laws that were put into place in 2020 make building an ADU legal on a state level which invalidates any city ordinances. These laws not only permit the rebuilding of ADUs but make the entire process a lot easier. ADUs are now able to be built in HOAs without any of the hassles, and now cities must approve ADU applications within 60 days. In addition, some of the other burdens that were lifted make it to where building ADUs by 2025 doesn't require the owner to live at the property, and these units can be developed at the same time as the main home. With all of these new laws in effect, it has never been easier to get the permits to build your perfect ADU.

Real estate and monthly rent in Santa Ana can be pretty high when you look at it. The average home in Santa Ana costs around $748,000, while the monthly rent comes in at $2,200 for the average apartment. So as a homeowner, one of the best decisions you can make is to invest in your home.

With all of California’s new updated laws regarding ADUs, homeowners can start to gain equity instantly just by adding an ADU to their property. These dwellings are an affordable way to increase cash flow. For example, starting costs range from $350-$450 per square foot, ADUs pay for themselves. Suppose you build an ADU on your property that adds an additional $2,000 to the mortgage payment. In this case, you could rent out the unit for $3,000 a month and make a $1,000 profit. Another great way to get more money in your pockets is by renting out your ADU as an Airbnb. 

Another great thing is that these tiny homes add tremendous value to your home. This means that you'll see a significant increase in your home equity. The equity of your home is the difference between what your home is worth and how much you still have left to pay. Here in Santa Ana, an ADU will add around 150% of the total costs in equity once the project is complete. As an example, if we were to build a 750 sq ft ADU on the property at the cost of $400 per sq ft for a total of $300,000, you could expect that your property value would go up by around $450,000 once the project is done. Now that's an instant ROI!

When it comes to the price of your ADU, you can expect to pay anywhere from $350 to $450 per square foot for your new dwelling in Santa Ana. Typically, as the square footage of the ADU increases, the price will decrease simply due because of the fixed costs associated with building an ADU regardless of size. The larger you build your ADU will give more return on investment when it comes to the property value and potential rental income. Remember, our company is an on-stop shop, and we are here for you every step of the way.

Not everyone has the cash on hand to pay for their ADU out of pocket. The good news is that there are many options available when it comes to financing your ADU. Banks understand what a great opportunity this investment is, making it a low-risk investment for them. For more detailed information about ADU financing, click here.

Nursing home costs average around $13,000 a month for a private room in Santa Ana. one way you can avoid these costly expenses is by building an ADU for your loved one while also adding value to your home. Your ADU is the perfect alternative to elderly loved ones who need professional assistance.

ADU financing options range anywhere from $1,500 to $2,500 per month (primarily depending on the size of your ADU at around $350-$450/sq ft). When you compare that price to the $13,000 a month you would be paying for assisted living facilities, you can save quite a bit of money while also benefiting your family and your property. Not only that, but building an Abu for your loved one as an alternative to a nursing home gives them a more comfortable place to live while being able to spend more quality time with family.

Another great way to utilize your ADU is as a guest house for friends and family. When you have friends and family that come to visit regularly, this can save them a fortune on hotel costs while giving you the opportunity to spend more time together. Even if you utilize your ADU as a guest house, it doesn't mean that you have to pass up the opportunity to earn extra income. For example, ADUs make the perfect space for an Airbnb. Between friends and family visits, you could rent out your ADU as an Airbnb to make additional income. The average Airbnb in Santa Ana costs around $115 per night. With you renting this ADU out just a few times a month, you'll have enough to cover the additional mortgage payment. If you decide to rent it out more often than that, it is simply more money in your pocket. So, not only can ADUs be used as the perfect guest suite, but they can also give you additional income each month.