The base costs to build our pre designed backyard homes are listed on our ADU Model 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 Bay Area,California
- California Modulars ADU 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.