Considering house remodeling and adding ADU (Cupertino, CA)

[DarmokAtTanagra]

Hello,

New here. Looking to remodel my single story house not far from the original Apple campus, and I'm in contact with a ADU company. The ADU did a site visit, and the takeaways included adding a second story would be significantly more complex and expensive than a backyard ADU. The initial sketch proposal is for a backyard ADU, probably would be a one bedroom construction. The location is quite desirable and very close to high performing Cupertino schools.

I am leaning towards and would like to retire early and eventually rely on passive streams/investments and ditch my 9-5 within a few years. I have no debt/mortgage, house was purchased nearly 40 years ago and was long paid off. Anyone here have experience with this particularly around my location/Silicon Valley? Trying to figure what my budget might be and get a better warm and fuzzy if this will be worth the investment. Hope this is in the right forum.

[Wintergreen78]

In Santa Barbara the going rate is $500/square foot for conversions/remodeling.

[Dicey]

Lots of unanswerable questions without numbers. What was the quote? Was it all in or are there extra costs?

Absent hard facts, here are a couple of thoughts.

BTW, asking an ADU company about a second floor addition is an obvious conflict of interest. Of course they're going to vote against that idea.

Another thing to consider is that pre-fabs come with their own pitfalls, but are generally much cheaper to build. IMO, they are not likely to add much equity, so you really need it to pay for itself.

As a experienced LL, I know full well how much work it entails. Are sure you want to deal with a stranger living in your backyard? Equities never call you in the middle of the night with a problem.

We need numbers.

[sonofsven]

Lots of unanswerable questions without numbers. What was the quote? Was it all in or are there extra costs?

Absent hard facts, here are a couple of thoughts.

BTW, asking an ADU company about a second floor addition is an obvious conflict of interest. Of course they're going to vote against that idea.

Another thing to consider is that pre-fabs come with their own pitfalls, but are generally much cheaper to build. IMO, they are not likely to add much equity, so you really need it to pay for itself.

As a experienced LL, I know full well how much work it entails. Are sure you want to deal with a stranger living in your backyard? Equities never call you in the middle of the night with a problem.

We need numbers.

Well, to be fair to the ADU co, as someone who's done numerous second story additions, unless you're building your backyard ADU on a cliff, it's almost always going to be easier to build new from the ground then building a new house on top of an existing house.

I think $500/sf is probably close. It's a higher cost per square foot when building smaller so it may even be more, so much depends on materials and finishes.

One thing, concrete work is extremely expensive right now, in my experience.

[Dicey]

Lots of unanswerable questions without numbers. What was the quote? Was it all in or are there extra costs?

Absent hard facts, here are a couple of thoughts.

BTW, asking an ADU company about a second floor addition is an obvious conflict of interest. Of course they're going to vote against that idea.

Another thing to consider is that pre-fabs come with their own pitfalls, but are generally much cheaper to build. IMO, they are not likely to add much equity, so you really need it to pay for itself.

As a experienced LL, I know full well how much work it entails. Are sure you want to deal with a stranger living in your backyard? Equities never call you in the middle of the night with a problem.

We need numbers.

Well, to be fair to the ADU co, as someone who's done numerous second story additions, unless you're building your backyard ADU on a cliff, it's almost always going to be easier to build new from the ground then building a new house on top of an existing house.

I think $500/sf is probably close. It's a higher cost per square foot when building smaller so it may even be more, so much depends on materials and finishes.

One thing, concrete work is extremely expensive right now, in my experience.

I don't disagree with you. My point was that they are far from an unbiased source.

[PMJL34]

There's zero change it will be 500/sqft. Double that minimum when it's all said and done. Neighbors just paid 1200+sq ft for a second story addition and this was just an addition, no kitchen and only a small bathroom and the contract was over 2 years old and it's in a cheaper area than yours OP.

Building an ADU above your primary sounds like a terrible idea.

OP, find another way to generate income.

Best of luck!

[GilesMM]

Have an architect draw it up then get as many quotes as you can for construction.  If it is, say 800 sq ft @ $500/sq foot that is $400,000. Can you rent it for $4,000/mo?  If so, proceed.  Keep in mind the impact on the primary home - noise, parking, etc.  Or are you planning to live in the ADU and rent out the main house?  You weren't clear on why you wanted to add to the main house.  If you are not going up, why not expand out (vs separate ADU)?