ADU-Granny Flat

Opportunities with ADU

Taking Care of Family, Create Income

Calif. has recognized the burden of housing shortage statewide. The scarcity inflates rental costs eliminating affordability. It disproportionately effects lower income families, students and others. The impact cascades into longer commutes adding to costs, pollution and quality of life.

In 2017 Calif reacted to impose statewide mandates for Accessory Dwelling Units (ADU) otherwise known as Granny Flats. The statewide mandate removes barriers and reduces overall costs for permitting and construction. These mandates override local building ordinance regulations.

Construction of ADUs were impaired from numerous requirements like parking, setbacks, and unreasonable construction costs normally associated with new construction.

Numerous bills passed in 2017 & 2018 that significantly improved the viability and cost reductions saving tens of thousands of dollars.

ADUs - Allows construction of an additional living dwelling on a property. This is applicable for single family and multi-family zone properties. Can be attached, detached or utilize existing space like garage conversion. Size limit is 1,200 sf. Must have direct access to the public street. Must meet setback requirements.
What's Driving Demand
Demand is driven from both housing needs and income opportunities. ADUS will add housing to help alleviate housing shortages.   It will also create long term affordable housing.   Homeowners can participate.   You have an affordable housing solution to your aging parents, siblings, young adult children.  If you finance a garage conversion, your mortgage payment will be under $500/mo.  compared to average of $1,500/mo. in the San Diego area.
Income opportunities will draw interest for investment strategies.  Attractive cap rates and instant equity will draw in the seasoned real estate investor.  This will also attract first-time investors and savvy homeowners desiring to diversify their investment portfolio.
What this means Next Step
 for you
Homeowners - This creates an opportunity to add affordable housing for family or an attractive income stream. 
Homebuyers - Addition of square footage adds value to create equity.
Construction of ADU starts at $80,000 for a garage conversion.  Detached ADU starts at $120,000.  If you don’t have funds, you can consider refinancing a home loan.  Several options exist.  Home equity loans, renovation loans and more.
We are a network of seasoned professionals that collaborate that creates a seamless process that ensures integrity, reliability and cost savings. 

We compiled all available financing.  We can help navigate through all the financing options.  Please visit our Financing Page.

Getting Started

The good news is most homeowners are eligible of building and financing an ADU. From a garage conversion to a 1,200 sq ft detach dwelling unit are now allowable. Since 2017 & 2019 local & state ordinances have removed major roadblocks and greatly reduced fees that saves homeowners tens of thousands of dollars.
There are also financing options available to most homeowners to make ADUs viable.
The not-so-good news, is this process can be daunting to even seasoned professionals in the real estate or construction profession. Our website is organized to assist the entire scope of building an ADU. You are encouraged to visit our pages. We’re just a phone call away.

We Can Help

We have a team of professionals to assist every step of the way. From a free initial consultation to financing, planning to construction, we have a coordinated process from an experienced team with you every step of the way. ​Meet our experts to fully understand your needs. We’ll explore the best financing that meets your financial goals. Our Feasibility will evaluate your site, develop plans, determine budget and timeline to completion. Our expertise and teamwork will come in on time and on budget.

Schedule a Free Consultation

  • Renovation Loans
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  • Resources: Architects, Contractors, Lender…
Get your questions answered.

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Will Johnson

Will Johnson, portrait 2022

Loan Originator NMLS# 2109577

Mobile: 619.295.9455

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Ridge Capital Group NMLS #1730019.  This advertisement is for general information only.  Some products may not be available in all licensed locations.  Information is subject to change without prior notice at the sole discretion of Ridge Capital Group.  All loan programs are subject to borrowers meeting appropriate underwriting conditions.  This is not a commitment to lend.  Other restrictions apply. Will Johnson – NMLS# 2109577,  DRE # 02207239