The base costs to build our pre-designed backyard homes are listed Homes page, in price builder section. But, it is important to understand what these costs include and what they exclude.
- Design & Architecture Fees
- Structural, MEP & Title 24 Engineering
- Permit Processing
- Mobilization & Construction
- Project Management of all of the items above. You only deal with California Modulars local area representative.
- Permit and other City fees (San Jose/Santa Clara estimate coming soon)
- Soils Engineering (typically not required)
- Landscaping Design or Install (typically not required
- Fire sprinklers
ADU Return on Investment
More importantly, it typically pays, and pays well to build an ADU in your Bay Area, CA backyard. This is because
- The land is (basically) free
- Financing is available and relatively inexpensive
- Rents are high in South Florida
- Custom Tiny Living models provide cost and schedule predictability
We ran a detailed financial projection on building, financing and renting out our 1 Bedroom, 1 Bath, ADU Ridgeline 400 Model in San Jose and the returns were very promising.
The projected rent for the 400 sq. ft. unit is $1,554/month
The all-in cost to build this (fully loaded) ADU is projected at $161,358, which sounds like a lot, but when financed at 90% Loan to Cost, creates a monthly payment of $560 on a 30 year period.
So, after the projected monthly loan payment, increase in property taxes and insurance, plus a few other expenses, the anticipated net return is $900/month. A nice bit of cash for letting go of part of your backyard.
If this sounds interesting and you think you have a viable property, please contact us to get you started on your ADU building process.