An ADU in Pacific Beach, San Diego costs about $325 per square foot to build but appraises at $1,000 per square foot. That gap between construction cost and market value is where the profit sits.
So what are the key benefits of adding an ADU to a property from an investment standpoint?
Yeah, so I mean, the key benefits are basically twofold. That's that you create just by building it, right? So for example, the property that I'm building around right now is Pacific Beach area of San Diego. I'll build for about $325 a square foot, and it'll be worth about $1,000 a square foot. So depending on where you are, Um, you know, I always look at build costs versus after-repair values. So if I'm building for $300, $350 a foot and it's worth $1,000, I mean, that's, that's a huge benefit in and of itself.
