LICENSED ACCESSORY DWELLING UNIT (ADU) CONTRACTOR IN LONG BEACH, CA

Put simply. An ADU is an additional housing structure built on a property that already has a primary residence. These granny flats come in many different shapes and sizes that offer total customization. As we mentioned, ADUs can go by other names as well, such as tiny homes, granny flats, and in-law suites, though they all have the same basic construction. These tiny homes have various benefits to take advantage of and they can be constructed on single-family or multi-family lots. In addition, ADUs have their own entrance and other living spaces, including kitchens, living rooms, and bathrooms. Furthermore, ADUs can be entirely detached from your dwelling as a stand-alone unit or attached to your house, such as by converting a garage or basement. For more details on attached vs. detached ADUs, please click here. 

The meteoric rise to popularity for these in-law suites is due to many factors, such as creating the perfect guest house addition or creating passive rental income. ADUs are an excellent way to increase your home's value while generating a cash flow. Additionally, ADUs can be used in several different ways, which is the largest contributor to why they've gained so much traction lately. 

Now that California has passed a new package of bills in January 2020, ADU construction couldn't be easier. Today, in Long Beach, California, you can enjoy having a luxury ADU, including its numerous benefits, thanks to this new set of bills. Some of the new laws include the ADU permits, and how they're automatically approved for single-family properties and can be constructed on multi-family properties. 

These novel laws were passed in order to make building an ADU legal at the state level, overshadowing any municipal ordinances. Not only do the new laws allow rebuilding ADUs, but they also make the entire process easier and faster. ADUs can also be built within home owner's association (HOA) neighborhoods now as well, and the city must approve the ADU application within 60 days. Some of the other eliminated inconveniences include that ADUs built by 2025 don't require the owner to live at the property and that ADUs can be constructed at the same time as the primary residence. With these laws in effect, it's never been so easy to secure permits and build the perfect ADU for you. 

It should come as no surprise that real estate and monthly rent are pretty high in the Long Beach area. The average real estate cost in Long Beach is roughly $795,000, and rent prices average around $2,444 for a one- to two-bedroom apartment. So, one of the most cost-effective investments you can make as a homeowner is in your property. 

With California's newly passed legislation regarding tiny homes, homeowners can generate instant home equity just by adding an ADU to their property. These granny flats offer an affordable, convenient way to increase your cash flow. For example, starting costs for an ADU range from $350 to $450 per square foot, meaning your ADU can pay for itself in no time. Suppose we construct an ADU rental home on your property with a monthly installment price of $2,000 to your mortgage. In that case, with the average rent being around $2,444, you could bring in over $400 of extra money every month after paying your monthly installment. Even if you don't want to rent it out continuously, you can still generate passive income by using your ADU as an AirBnB.

Furthermore, these units add incredible value to your property, increasing your home equity dramatically just by having one on your property. Your home equity is the difference between what your residence is worth and how much you still owe on it. Here in Long Beach, an ADU can add as much as 150% of the total costs in equity once the tiny home is finished. For example, if we build a 750 square foot ADU on your property at a build cost of $400 per square foot for a total of $300,000, you can expect your home's value to skyrocket to roughly $450,000 as soon as the job is done. Now that's what we call instant return on investment (ROI)!

You can expect to spend around $350 to $450 per square foot for our team to build an ADU in Long Beach, California. Usually, the price per square foot will decrease as the square footage in your ADU increases, mainly because there are a lot of fixed costs associated with building a tiny home regardless of the size. The larger your unit, the larger the ROI will be when it comes to your property value and potential cash flow. Don't forget! We're a one-stop-shop and will be with you through every step of the process. 

Indeed, not everyone has the cash on hand to pay for the entire ADU development at one time. Thankfully, there are plenty of exceptional lending options available since banks realize how much an ADU will increase your property value, making this a low-risk investment for them as the lender. For a more detailed explanation of our ADU financing options, click here. 

In Long Beach, CA, nursing home costs average around $8,060 per month. There's no doubt that Long Beach can be an expensive place to need assisted living care. However, you can avoid these expensive bills and add instant equity to your home with an ADU. Your in-law suite can function as a nursing home alternative for your elderly loved ones in need of assisted living. 

ADU financing options usually range between $1,500 and $2,500 per month, depending on the size of your ADU at roughly $350 to $450 per square foot. Compared to the $8,000+ a month you'd be paying for a nursing home room, you'll be saving countless dollars while helping your family and property simultaneously. Furthermore, using a tiny home as a nursing home alternative will provide more time for you to spend with your loved ones and comfortable space for them to live surrounded by their family. 

An ADU makes an ideal guest house. No matter if you always have friends and family stopping to visit in need of a place to stay during their visit, or if you simply want to have a place to spend a night out of the house occasionally, ADUs are a perfect solution. In addition, even if you use your ADU as a guest house, you can still utilize its cash flow opportunities to generate passive income. For example, you can use your ADU guest house as an AirBnB and rent it out to tourists between your friends and family's visits. The typical AirBnB in Long Beach costs roughly $223 per night. So, even if you only rent your ADU out as an AirBnB about ten times every month, your loan payment will be covered by rental income alone. If you have time to rent it out more often, then you're only increasing your cash flow while providing your friends and family a gorgeous place to stay whenever they're over to visit.