An above garage ADU is an additional living unit on a property built above a garage to provide extra space while preserving the storage for parking and storage.
For those concerned about finding space on their property to add an ADU or unwilling to convert their garage, an above garage ADU presents a viable option. This intelligent approach offers extra space without compromising living areas, storage, or outdoor space since you are building up in lieu of out.
The California state government has lately relaxed the rules and restrictions concerning constructing an Accessory Dwelling Unit above garages in Los Angeles and across Southern California. Above garage ADUs optimize space utilization by expanding upright rather than outward space.
In this article, we will explore the benefits of opting for a garage conversion ADU instead of a traditional home extension. From cost efficiency and faster construction schedules to design flexibility and the possibility of generating rental income. We examine how this innovative home expansion method transforms and how homeowners maximize their living areas.
The Value of RenoFi for Your Above Garage ADU
At RenoFi, we are committed to guiding homeowners through every stage of the above-garage ADU planning and development journey. Understanding several critical aspects of building an above-garage ADU is essential.
RenoFi is the smartest way to finance your ADU project. ADUs not only increase your home’s value after renovation but can also generate rental income. However, ADUs are costly. If you don’t have enough equity in your current home, funding ADU construction with a home equity loan is impossible.
For example, let’s say your current home value is $500,000, and your outstanding mortgage balance is $400,000. You are planning on adding an ADU and expect the value of your home to increase to $640,000. Your current loan-to-value ratio (LTV) is already at 80%, which means that most home equity loans are out of reach because that’s the maximum LTV they allow. So, your borrowing power using your current equity is $0.
RenoFi, on the other hand, would allow you to go as high as 150% LTV of your current value or 90% of your after renovation value, whichever is lower. So, in this example, while using a standard home equity loan results in your borrowing power being $0, a RenoFi loan allows you to borrow up to $176,000 by using the after renovation value of your home!
Above Garage ADU Uses
A garage is valuable for parking vehicles and providing additional storage, but what about the area above it?
Given the high demand for space in Los Angeles and Southern California, it is logical to consider the above-garage ADUs. This design incorporates elements from both a typical garage conversion and attached ADUs. This transformation may require modifying the garage’s structure (as needed) and interior to establish a fully operational area with bedrooms, bathrooms, and a small kitchen.
Guest Suite
Firstly, constructing an above-garage ADU could offer you a convenient space for hosting guests when they visit. You will appreciate having your own private space. An ADU can also serve as guest accommodation during holidays.
Space for Older People and Students
Building an ADU allows families to care for elderly relatives nearby while supporting their independence. Plus, providing adult children with rental housing in the ADU enables them to maintain autonomy. This setup ensures peace of mind, knowing loved ones are close in the above-garage ADU.
Home Office Space
An ADU above the garage is a quiet retreat for work, serving as an ideal home office away from household noise. As more professionals shift to full-time remote work, having a dedicated office space becomes increasingly important. With amenities like a half-bathroom, mini-fridge, and coffee maker, it offers a fully equipped environment for remote work, reflecting the growing trend of working from home.
Studio Workspace
An ADU offers versatile utility, accommodating various needs such as yoga, music, artistry, or woodworking. Whether utilized as a home art studio, recording space, office, or quiet retreat, the ADU provides a private and peaceful setting for creative pursuits and personal activities.
Tailor the space with specialized features like ventilation, soundproofing, and custom storage to enhance craft-specific requirements. This secluded environment also serves well as a study room, workout area, or personal gym, eliminating the need for long commutes or waiting for equipment.
Benefits of Constructing ADU Above Garage
Homeowners often ponder the financial implications of garage conversions. Above garage ADUs can be a wise financial move, offering several benefits based on location, market conditions, and personal financial goals.
Increased Property Value
The National Association of Realtors (NAR) states that adding an ADU to the property boosts its value by 35%. Transforming the garage into an ADU can raise your property’s market worth by expanding usable space and making it more attractive to potential buyers or renters.
According to Forbes, various homeowners are willing to pay more for homes with an above-garage ADU as it offers flexibility in how they use the space. Building an ADU is an intelligent investment that can result in a significant return on investment (ROI).
Rental Income
Building an above-garage ADU offers investment potential through rental income, whether for short-term or long-term leases, helping to recoup project costs and steady passive income to support mortgage payments or retirement savings. They can serve as valuable rental properties, offering flexibility from traditional leasing to Airbnb-style rentals, enhancing financial returns and potentially increasing property resale value.
Multigenerational Living
Above-garage ADUs provide alternatives to costly assisted living for elderly family members and low-cost housing solutions for returning adult children. Moreover, ADUs serve as private spaces for long-term guests or family members, supporting multi-generational living dynamics and providing versatile use as studios, offices, or retreats.
Space-Saving
The primary advantage of an above-garage ADU is its space-saving potential, which can be utilized in various ways, as mentioned above. Building an above-garage ADU allows for vertical expansion without sacrificing yard space. Unlike converting a garage, it preserves the garage’s functionality. Overall, an above-garage ADU offers an efficient way to optimize a property’s space.
Added Privacy
Building an above-garage ADU provides a private, cozy space separate from the main house, ideal for accommodating guests or adult children rent-free. Unlike traditional ground-level ADUs, its entrance and amenities offer enhanced privacy, making it a considerate choice for your guests or family members.
Efficient Home Expansion
Choosing a garage conversion ADU instead of a conventional addition is cost-effective. Utilizing the existing structure helps cut construction expenses, which appeals to homeowners managing tight budgets.
The savings from the reduced foundation, roofing, and exterior wall costs can be allocated to interior upgrades or other home improvements. Furthermore, garage conversions generally finish quicker due to the pre-existing framework that simplifies the construction process.
Eco-Friendly Approach
Opting for an above garage ADU promotes sustainable living by repurposing existing structures, minimizing waste, and reducing the carbon footprint of new construction. Although construction inherently impacts the environment, building vertically rather than expanding space horizontally helps preserve green space and enhances eco-friendliness.
Designing Above Garage ADU
When designing an above-garage ADU, it’s important to choose a practical layout and consider the intended use of the space. Keeping the ultimate goal in focus will guide design decisions requiring storage, an open layout, separate rooms, a compact kitchen area, or built-in seating.
Once the purpose of the space is clear, you can proceed to develop the concept design, considering factors such as natural light, ventilation, and privacy.
Engage an experienced architect who can assist in developing your second-story ADU blueprints based on your requirements. Ensure the architect is knowledgeable about the zoning and construction regulations in Los Angeles or your specific Southern California location.
While ADUs are generally permitted across California, individual cities may have unique rules, such as height limits, that affect buildings above a garage. The designs need official approval from the Los Angeles Department of Building and Safety. This step is crucial to ensure compliance with all laws and regulations. Once approved, you can begin the process of obtaining a construction permit.
Constructing an above-garage ADU involves structural complexities due to additional support needed to ensure stability. Adding support posts on the first floor could compromise functionality, so the focus is reinforcing the perimeter and installing multiple subfloor layers for strength.
ADU designs and regulations in California vary slightly based on whether the garage is attached or detached.
Foundational Considerations
When planning garage ADU designs, start with the foundation and move up step by step. Converting a standard garage into a habitable space involves ensuring the concrete slab is thick and properly constructed, potentially reinforcing it if degraded, and adding insulation and a moisture barrier for comfort.
Adjustments may be needed to level the floor and prevent water seepage, such as adding a curb to the garage door opening for moisture protection.
Insulation and Layout
The dimensions and layout of an ADU will vary based on factors like space availability, budget, and unique requirements. Typical setups range from studio or one-bedroom layouts with open designs, offering flexibility for customization. Insulating garage walls is essential for comfort and may require additional support for insulation and drywall.
Consider window and door placement for natural light and accessibility, and plan internal partitions for privacy. Consider the garage door’s role as a natural light source, an entryway, or a canvas for decoration. If replacing it with a wall, ensure seamless integration with existing siding.
Opt for a patio door for private entry or a bay window for a balanced alternative, depending on space availability. Ensure ample natural light in the above-garage ADU to enhance the feeling of spaciousness.
Utilities
Adding plumbing and electrical utilities to the garage for an ADU can be costly, especially if they still need to be installed. Ensure existing hookups or plan for new connections from utility providers.
Consider separate meters for tenant usage and plan for sufficient lighting circuits and plumbing arrangements, possibly utilizing nearby utility rooms for cost-effective solutions. Ensure the plumbing setup complies with local water flow and drainage regulations. It’s essential that the electrical wiring is installed correctly and up to standard when transforming a garage into an ADU.
Good ventilation is crucial in a garage conversion ADU to keep the air fresh and maintain consistent temperatures. Installing exhaust fans in bathrooms and kitchens helps control humidity.
Adding windows or skylights enhances natural airflow and lighting, improving comfort and energy efficiency. Seek advice from HVAC experts to choose the best heating and cooling systems for the ADU. Effective insulation and thoughtful ventilation planning ensure comfortable indoor conditions throughout the year.
Cost Estimate for Building an ADU Above Garage
ADU garage conversions involve different design levels and cost considerations based on project goals and budget. Estimating building expenses for each ADU involves detailed planning, materials selection, and labor requirements, which can vary significantly. Factors like the contractor chosen, existing structure size and condition, required renovations, and local material and labor costs all influence the total cost of converting a garage into an ADU.
The estimated costs for building an above-garage ADU vary based on size. For a 400-square-foot ADU, expenses range from $180,000 to $220,000, while a 600-square-foot unit may cost between $260,000 and $320,000. More extensive options, like a 750-square-foot ADU, could range from $340,000 to $420,000.
On average, constructing such an ADU typically falls between $200,000 and $350,000. Detached new above-garage constructions start at approximately $260,000, assuming a setup with a 400-square-foot garage and a 400-square-foot ADU above, including installing a staircase.
Factors Affecting Above Garage Costs
Several factors influence the costs of building an ADU above a garage beyond just square footage. Key components such as framing, roofing, siding, plumbing, and insulation contribute significantly to the expenses. Other cost determinants include the size of the ADU, contractor rates, necessary structural reinforcements, and utility installations.
External factors like ongoing maintenance, insurance, exterior refinishing needs, material choices, and the complexity of integrating the ADU with existing structures further impact overall project costs.
Adjustments such as reinforcing garage foundations, installing new roofs, and configuring stairs also play a role, alongside considerations like house age and compliance with modern building codes. You can cut down on building expenses by choosing a straightforward layout.
For example, placing the ADU directly above the four corners of your current garage can lower framing and structural costs. Opting for an outdoor staircase instead of an indoor one can save space and money.
RenoFi provides valuable financing options tailored for above-garage construction projects, ensuring homeowners can fund their renovations effectively. Our specialized loans cater to the unique needs of ADU developments, supporting individuals in maximizing their property’s potential without financial stress.
Conclusion
Constructing an ADU above your garage brings several advantages, such as higher property value and potential rental income. Yet, it demands thorough planning, cost assessment, and adherence to local rules.
Prepare by assessing feasibility, optimizing space, and adhering to codes for a successful ADU garage conversion. RenoFi’s expertise and resources streamline the financing process, making it accessible and straightforward for those embarking on garage ADU projects.
Moreover, our RenoFi loans are the most innovative way to finance a home renovation project. Unlike traditional loans, which are based on your current home value or require you to refinance your primary mortgage and give up your low rate, RenoFi loans are based on the after-renovation value of your home. This allows you to borrow, on average, 11x more, get a low monthly payment, and keep your low rate on your first mortgage.
If you want to explore garage ADU designs or understand how our renovation loans can help fund your garage conversion, contact RenoFi today for more information.
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