Backyard Transformed into an Investor's Dream Project

Backyard Transformed into an Investor's Dream Project | 500 Sq Ft ADU Tour

Рет қаралды 120,799

Күн бұрын

Learn more about this stunning ADU build!
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Special thank you to Nima Moradi of NorCal ADU Builders for participating and providing the footage of their ADU process!
TIMESTAMPS:
0:30 ADU construction process
4:00 ADU benefits, passive rental income
4:57 Success on Airbnb
5:26 Maximization of multi-family property
6:27 House hacking
8:30 Net cash flow per month
9:09 Advice for homeowners and investors
WHAT IS AN ADU?
ADU stands for accessory dwelling unit. An ADU is a permanent additional housing structure built on a property that already has a main home or main structure. You may have heard them referred to as granny flats, casitas, guest houses, or in-law suites. They can be built on a single-family lot or multi-family lot (duplexes count as multi-family).
An ADU has its own entrance, separate from the primary house, as well as a kitchen, bathroom, and living space.
Accessory dwelling units can be rented year-round and add a lot of value to your property. They can be garage conversions, stand-alone units, attic or basement conversions, or be attached to the main house.
ADUs are exceptionally flexible, and most owners find that their use for the unit evolves over the years, including passive rental income.
Nima is just one of many California residents that have taken advantage of the state's progressive ADU regulations to maximize the potential of his multi-family property.
Nima and his wife own a triplex property that was already bringing in passive rental income from renting two of the living spaces. After learning about ADUs, they realized their backyard was a prime spot to build a FOURTH liveable space that could be rented, and so they got to work.
Nima decided to take on some of the construction work himself which was quite a feat while also working a full-time job but through all the hard work, their ADU was built and ready for move-in after just four months.
The final cost of the project came out to about $76,000, including design and permitting fees. This is well below the average cost for an ADU of this size since Nima did a lot of the construction work himself, but unless you have the construction experience and time, you may want to leave that job to a general contractor.
"That definitely came at the expense of a lot of long nights, a lot of effort, and a lot of sweat that went into it." - Nima
Finding a reputable general contractor can be daunting. Even Nima ran into some problems with one of his subcontractors, which is why Maxable is devoted to helping homeowners find vetted and experienced ADU professionals to help complete your project. Visit maxablespace.com/ for more details.
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Music credits:
New Lands by Alex-Productions | onsound.eu/
Music promoted by www.free-stock-music.com
Creative Commons / Attribution 3.0 Unported License (CC BY 3.0)
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Пікірлер: 110

@nelsonsilva7572 9 ай бұрын

Love the project! So great that he is able to use a property that his family bought and then add so much value to it and at the same time adding rental units in the community helping to decrease rent values in the area! Great way for young people to decrease their dependency on a full time jobs! All these large lots should have an ADU. This will not take the homeless out of the streets, but will help increase inventory of rental properties in the area and overtime decrease rent rates. Win win for the home owner who wants to get ahead in life and live a comfortable life with his family and for the community in general. The new ADU laws in CA coming out in 2024 should help increase the numbers of these ADU's.

@lina_chats Жыл бұрын

Such a great video detailing the steps involved. I'm inspired.

@JosephPeretz Ай бұрын

Love the Video! I love that you took to many videos and pictures during the project! I looked like you really care about your work!

@lfuentes4098 3 ай бұрын

Your electrical and plumbing tradesmen behind the wall work looks very neat. That’s a good sign. 😊

@Maxable 3 ай бұрын

We think so too, thanks!

@MARthePaintballer 10 ай бұрын

Anyone else notice the bong on the counter @3:34 LOL

@JosephPeretz Ай бұрын

That's one way of getting yourself through subway tiles

@dustindavidson849 7 күн бұрын

😂 inspector is coming! Hide that!

@JosephPeretz 7 күн бұрын

@@dustindavidson849 honestly some inspectors don’t mind a bit of bribery 🤣

@jasminepolanco4039 Ай бұрын

Loved the step by step!

@georgeforgues9298 9 ай бұрын

Love ADUs. Nice video.

@M4runner13 Жыл бұрын

This was a great video! Only con I would say is the music playing while you were talking or at least have it turned down even more

@kokobean240 11 ай бұрын

Good info. Thanks for sharing

@ricoroger 9 ай бұрын

great video!.

@crystalb.2578 6 ай бұрын

House Hacking and an ADU. Thats incredible!

@Maxable 5 ай бұрын

Thanks!

@sturbaum1 Жыл бұрын

The layout reminds me of the San Mateo County Pre-approved ADU plans. Also, some cities require property owners to live on property if renting out ADUs (or live in the ADU and rent out main home) so check with your local codes/rules to make sure this type of house hack is best for you.

@Maxable Жыл бұрын

California state regulations forbid cities from requiring owner occupancy for properties with ADUs permitted before Jan 1st 2025. Bill AB 976 is currently in review to make this a permanent regulation.

@Man-u-flex 6 ай бұрын

Can we do this in NJ?

@mra95662 Жыл бұрын

In Lincoln! Good play!

@NikkiPresents2024 24 күн бұрын

This was a great video.

@Maxable 16 күн бұрын

Thank you! Glad you enjoyed it

@marcomorales8201 Жыл бұрын

What was the cost of sewer and plumbing?

@deebrown7160 2 ай бұрын

Im looking in putting a few of these on my land next year.

@Maxable 2 ай бұрын

Great idea, we support it!

@gisellegutierrez4838 8 ай бұрын

Is there a way I can get access to the floor plans?

@tmaxximus Жыл бұрын

Can you send link to Airbnb listing?

@michelleleon10 10 ай бұрын

wow! did this project really cost 76k. Where is this located? I am trying to build an ADU 1 bed 2/3 baths depending. Budget of 150k 😅

@mrslminns Ай бұрын

Or is it best to get a shed and then go from there??

@AA-eb7sd Жыл бұрын

Nima did you had to install ductless air conditioner. I wonder if you already have wall heater if that will be good enough or ductless air is required? thnx for any info

@NorcalADU 9 ай бұрын

I added the ductless mini splits because they were the most efficient for the situation. They provide heating and cooling, and our heat pump operated. Some sort of heating and cooling will be needed, which will need to pass title 24

@Eileen49654 5 ай бұрын

In case anyone else is wondering what ADU stands for besides me Accessory Dwelling Unit. Or a secondary unit.

@Maxable 4 ай бұрын

Accessory, Auxiliary, Additional Dwelling Unit, secondary unit, granny flat, casita, companion units, garage conversions - yep, they're all referring to the same thing! Thanks for sharing, Eileen.

@kmk3054 5 ай бұрын

I’m trying to build two ADU one Jr hoping to rent to single and single with kid both will be long term rentals and I actually may take one myself and rent my large house and rent it to a large family.

@Maxable 5 ай бұрын

great idea!

@Ucarmona1 Жыл бұрын

Can the ADU be rented as a STR? I thought they could only be rented for 30+ days?

@Maxable Жыл бұрын

In Sacramento, yes! You just have to apply for a short-term rental permit or a conditional-use permit if renting the ADU for more than 90 days out of the year. maxablespace.com/how-to-build-an-adu-in-sacramento-ca/ STR regulations for ADUs vary with each city. For example, in San Diego, ADUs cannot be rented as a STR.

@susandudley171 4 ай бұрын

How is it having strangers for Airb+b? Alot of cleaning time inbetween visitors?

@Maxable 4 ай бұрын

Some owners choose to hire a property manager that handles the entire experience, other owners choose to hire cleaners to handle the 'reset' of the Airbnb, and some save the money and do the clean-up themselves! Usually tenants are respectful of the space and clean up in a breeze...but there are always edge cases where unruly visitors cause a mess. Clean up aside, as long as you design your ADU with privacy in mind (taking sound attenuation measures, adding a privacy fence, etc), you won't even notice that you have strangers staying in your back/side yard!

@juanvela86 6 ай бұрын

That looks great man I really wanna do one ADU how much did blueprints cost you I would love to año exactly like that one how would you charge me to use your blueprints ???

@Maxable 6 ай бұрын

Depending on where you live and the size of your ADU, blueprints/plans for an ADU can cost anywhere from a few thousand dollars up to $15k+. Many cities in California are released pre-approved plansets - you can buy those directly from the architects who created them, but you'll still need to work with an architect to customize those plans for your specific property, which will add a bit to your total cost.

@PolloG-oz9sd 2 күн бұрын

Curious - What were your set back requirements in your city? Looks awfully close to the PL?

@Maxable Күн бұрын

This ADU in the Sacramento area has a 4 foot setback from the side property line, which was the minimum setback required. Here's an article to learn more about the project: maxablespace.com/property-with-an-adu-nets-5000-a-month/

@dudehere1100 Ай бұрын

Beautiful ADU, but no laundry?

@tarasilew6851 4 ай бұрын

Hi Amazing work We are semi local do you have plans available. Also and sub contractors you recommend? Thanks in advance

@Maxable 3 ай бұрын

Thank you! Yes, reach out on our website to get started - www.maxablespace.com

@DeanBKK Жыл бұрын

Very nice video. I know you mentioned he paid $76k with him doing a lot of the work himself. But I'm curious if the build could be done cheaper if he just bought a 14'x34' pre-fab shell structure for $20k (from a place like United Portable Buildings), then finished everything else out on his own after delivery?

@Maxable Жыл бұрын

It's possible, but you probably wouldn't save much. While the structure may only cost $20k, you also have to factor in the cost of transportation and installation.

@AliChoudhery-ld5yg Жыл бұрын

I'll tell you the secret to doing these cheap. Pull out an owner builder permit and hire your own workers; get your own concrete guy, plumber, electrician, framer, etc. That's the cheapest way to do it. It will be more work involved, but drastically cheaper than hiring a contractor or going with a company that builds prefab homes.

@antholic3786 8 ай бұрын

but what about getting a 10k prefab and using it as adu ? @@AliChoudhery-ld5yg

@mrslminns Ай бұрын

How do you get someone to build you one. I can sub out but. I need build lay out plan ??

@SRGLIST 4 ай бұрын

Did you hire a contractor?

@mrslminns 23 күн бұрын

Do you build in Alabama?

@edmundorivera5825 Жыл бұрын

Very enterprising. Congratulations. From looking at the info on website @$320 per sq ft if you had built with gc. Any idea how much the ADU increased the value of property? Thanks.

@Maxable Жыл бұрын

ADUs can increase property value by up to 35%.

@juansalazar707 Жыл бұрын

How much did it cost for the ADU? Labor and material?

@Maxable Жыл бұрын

$76,000, but Nima did a lot of the work himself. Hiring a general contractor this project would have cost around $150,000

@BigTroubleD Жыл бұрын

@@Maxablethis is the way to go. Forget hiring a general contractor!

@AA-eb7sd Жыл бұрын

@@BigTroubleD You can be your own general contractor, do some of the work yourself and if you don't the other parts just sub it out i.e plumbing, electrical, or drywall

@CryptoCafe2012 7 ай бұрын

Send me your plans

@gdvadventours5512 Жыл бұрын

I didn't know ADU is allowed that close to the fence

@kevincolvin5205 Жыл бұрын

I’ve seen some places in California at 10 feet and others at 4 feet. Take my input with a grain of salt though.

@Maxable Жыл бұрын

California state regulation for side and rear setbacks is 4 ft!

@trojanssc01 Жыл бұрын

@@Maxableit depends on the city. Some are at 6ft

@gloriamdominguez288 4 ай бұрын

How much would it cost to build this. Very interested

@Maxable 3 ай бұрын

It'll depend on where your property is located, your site conditions, and goals for the space - this ADU was built in Northern California and cost around $200k to build. Your mileage may vary!

@claudettepena9200 Жыл бұрын

Problem is you'll be lucky to find responsible tenants.

@terril.3030 7 ай бұрын

This looks a lot bigger than 500? So, can you confirm this was actually 500 square feet?

@Maxable 5 ай бұрын

Yep! The ADU is 36x14ft, so it is 504 square feet total - some smart space-saving hacks certainly make it feel a lot bigger, don't they?!

@susandudley171 4 ай бұрын

Do laws change for ADU over 500 sqr ft?

@freydough3178 3 ай бұрын

Total price???

@Maxable 3 ай бұрын

This ADU is located in the Sacramento area and would cost around $200k-$250k to build

@jan_phd Жыл бұрын

Adding property value means, increasing the property tax.

@mra95662 Жыл бұрын

Sad. ADU law was meant to increase housing supply. This isn't happening. It's just profit motivated as it should be. Short term rentals aren't going to help housing crisis.

@elliottbrown1725 11 ай бұрын

Supply and demand. More supply equals less demand which will eventually drive prices lower.

@AlbertoHernandez-up3cs 9 ай бұрын

So what’s your solution?

@mra95662 9 ай бұрын

move to another state where housing is more affordable@@AlbertoHernandez-up3cs

@jorgeimancilla3170 8 ай бұрын

@@elliottbrown1725you can’t explains basic economics to the average joe

@NorcalADU 7 ай бұрын

What is sad is that we are living in a situation where our rights are becoming diminished each and every day. After a homeowner puts a significant portion their OWN money for an investment project, then the local jurisdictions decide on how you can use the investment property. Anyone that things this is OK, it clearly shows your desire for a socialistic economy, and not a capitalistic one.

@stevennguyen2879 6 ай бұрын

Short term rental is no passive income.

@Maxable 5 ай бұрын

Agreed, unless you're working with a property manager to handle the day-to-day tasks. Using an ADU as a long term rental can certainly be a ton more passive!

@timwilson3150 9 ай бұрын

Say goodbye to your backyard and privacy.

@NorcalADU 9 ай бұрын

Depends on the situation you intend to use the property for. There’s still a decent backyard left over, and rental income has been maximized.

@MariE-go7ol Жыл бұрын

They can’t be rented day to day on arbnb. It has to be at least 30 days. California has a ban on this and why I got discouraged from doing it.

@Maxable Жыл бұрын

The legality of short term rentals vary from city to city. In Sacramento, short-term rentals are allowed with the proper permits.

@ksandhoff1 Жыл бұрын

@@Maxable it depends, so most allow 30 days or more but some commie cities are more restrictive, my clients are "when in doubt rent it out" I if had 2 bdr 800sq ft condo that generated $60,000, per year FUCK YEAH!1

@AMYV3 Жыл бұрын

We don’t need more TEMP housing. One of the reasons we are in a housing crisis. So many long term rentals lost from the rental market. This was money for them period. That’s disappointing 🤦🏼‍♀️. When I see now families, seniors, students or singles living in cars or on the street I don’t know how you cant at least think about what you can do for your community. I’m not talking about opening your home up as a shelter for addicts. Just be a part of this world we live in. You should know by now NOT everyone starts life on an level playing field… so before you tell people “if they don’t do this… I guess they want to be victims.” Think how very hard that would be for some people that were never told they had it in them..to become anyone they wish or didn’t have even one parent at home to make dinner, help with homework or tug you or your 4 younger siblings in at night, so that task falls solely on them. Again you never TALK ..until you walk in others shoes…. I was lucky compared to many. I had supportive people around me. So I was able to focus on years of schooling. Be a home owner etc. car owner with no payments. I could work hard to think about my future. I didn’t have daily struggles my mind was focused on. For that I was truly lucky . So of course Yes your family comes first. Mine does, You have be smart make a good life for your family by bringing in a good income. Just be a part of the solution too. if you aren’t going to be. Just don’t kick people while their down. The situations I’ve seen .. (I do relief work) I’d like to see the peeps judging to go through what they have and not fall behind ONE month etc. Im just asking have …empathy during this really hard time for people and don’t ask rent prices only people making $100,000 a year can afford. People who make that money usually buy so does nothing to help this crisis. 🤷🏼‍♀️. Remember 30 % should be the max you pay in rent so you don’t live under the poverty line. And if this gets worse, people aren’t going to be ok with that. It’s scares me. We need to come up with a solution. It’s everyone’s issue …TRUST THAT. 😊

@LowHang-nFruits 2 ай бұрын

4th largest country running out of place to live, wth

@pcf819 7 ай бұрын

God forbid a family member had to live in there so you wouldn’t be able to make your big money. Family members can pay rent but I could just imagine what you would ask.

@Mary20002 8 ай бұрын

I just wish there will be more housing like this for EVERYONE not just for the few to make money…I’m not paying rent anymore good for the nasty landlords but not for the general public. WE ALL DESERVE OUR OWN HOME…the answer is not rent from somebody…the nerves…👎👎👎👎

@JonTheWise 5 ай бұрын

While I think everyone should have the option of owning their own home, I think there’s definitely a subset of people that prefer to rent because they don’t want to do the landscaping or have to deal with maintenance.

@gmannfl2004 3 ай бұрын

Some people prefer rent with options to buy or airbnb. Their should always be payment options for every type of living situation.

@MariE-go7ol Жыл бұрын

And how much is the payment for the loan for a ADU? I’m assuming $100k still to pay off that loan.

@Maxable Жыл бұрын

Total cost was about $76,000 since Nima did a lot of the work himself. Monthly payments would be about $400-$500 a month depending on the interest rate at the time he started the project. We have more info here! maxablespace.com/property-with-an-adu-nets-5000-a-month/

@mariagmartinez2492 Жыл бұрын

How much it cost the adu?????

@Maxable Жыл бұрын

This project cost Nima about $76,000, but keep in mind that Nima did a lot of the construction work himself which lowered the cost. An ADU like this in Sacramento will start at about $160,000 with a general contractor.

@mariagmartinez2492 Жыл бұрын

@@Maxable Thank you I'm working hard and still saving !!!

@SRGLIST 4 ай бұрын

@@Maxablewhat’s Nima?

@AnAbortiveRomance 3 ай бұрын

Stop saying we. You didn't do shite, you just paid other's to do everything. My dad built a small 750sqft 2bd 1ba home for us, on his weekends off by himself. Get some skin in the game before you bloviate about all your hard work. Nice small home though

@Maxable 3 ай бұрын

The 'we' here is referring to the team our client used to build his ADU. Impressive project your dad did, but hey, no need to be rude!