hi everyone - thanks for watching this video! The goal was to teach people who are unfamiliar with ADU’s about them: how much they can cost, how long it takes to build, what kind of fees you can expect. believe it or not, a LOT of people are unfamiliar with the term “ADU” - which is why I didn’t use it in the title. Many of you that clicked on the video are kind of in the real estate niche - but you have to remember that the average person might not know what an ADU is (I meet people like this all the time!) A lot of people I know are frustrated that it’s an Airbnb. I totally get that. I’d love to see more people turn these into long term rental units too. But it’s not my property and Krista is free to do whatever she wants with it. Many other people are building them with the intention of making them long term rentals, a place for elderly parents to live, etc. which is really cool to see. Not everyone is making them airbnbs - just in this case she did make it a 28 day+ airbnb. Let me know what you would do with the property if you built one of these!
Hey! I work for an ADU contractor in Upland, CA. I’d love to set up some time to talk and see how we can help! I’m sure your viewers would love to see another perspective on this topic!
@@ShelbyChurch she set it at 28 days because when people stay for 30 they automatically become tenants and the owner will be forced to charge the market rate, not the Airbnb rate which is often double to triple market rate for rent. This is sounding more and more illegal the more I’m reading the comments! Well if anyone is interested the city of LA takes illegal housing very seriously and maybe the hosting authority needs to be involved. Because who only needs to stay somewhere for 28 days and not an actual month. I’m sorry not this is super trashy.
I think it's controversial because so many people who build ADUs don't actually add to the housing supply for residents, just like this example. They built 2 new units and 0 of them will be available to local residents, because they prefer to and get more money from Airbnb. They contribute to rising rents while taking resources, like street parking, from the community.
People on Airbnb would rented a normal market unit. So it is adding to the housing supply. Two shorter term rentals allow for a normal unit to be kept free. It's her property.
First of all, She can do whatever she wants, it's her property... Also It's not her responsibility to add to the housing market... Blame the politicians you voted for... the reason housing is so expensive and there are no affordable housing is the high cost and the crazy hoops it takes to build here in california... So many permits that take years to clear, all the fees and taxes, even a homeless tax is added to the cost of building , the high cost of property taxes..In San Bernardino there is even some crazy Kangaroo Rat tax to pay for the displaced rats... It cost so much to build,the builder would lose money on affordable housing... If you all would stop voting for Bond Measures our property taxes wouldn't be so high..
When someone builds an ADU and rents it out on Airbnb, it can still indirectly free up housing in other areas. Here's how: if a traveller, temporary worker, or someone looking for short-term accommodation rents an ADU instead of a regular house or apartment, they leave those longer-term housing options available for people who need permanent residences.
just a bad take; infill = increased supply. not everywhere allows airbnb and not everyone wants to run aSTR… it could allow kids to live at home, elderly, or anyone who would value a small apace while providing resources for the local economy + taxes for LA
Lol, she didn't "build a house for $158,000." She built an ADU (basically a shed) on an existing property with a home. So you'd have to count the price of that home and the lot. Also, she doesn't even "rent" them out, which is what the city wants to incentivize - she puts them up on Airbnb, just contributing to the housing crisis. She even skirts around the school tax with the
I’m just counting the Construction cost, but I feel like it’s common knowledge that there is a cost for the land as well but she didn’t have to pay more for the land. It was just with the house she already had. Definitely not ideal that it’s an Airbnb, but technically it’s legal and she can do whatever she wants with it - but yes, would love to see more people leasing them to long-term tenants
First of all, the ADU is beautiful. But……. this is not adding “two new units to the LA supply”. From what she is saying, she’s renting them out as a short-term (or aka Airbnb rental) and that’s ALOT of money for such small units. This is money in her pocket (good for her) but does not help the housing shortage at all. Let just be honest. IMO this cavalier affirmation of $4000/month being an acceptable price is what’s driving housing and rent prices up.
It’s a midterm rental so different than a short term rental, but I totally get what you’re saying. I do think it would be cool if they were long-term rentals! I said to add to the housing supply because she sells these one day, they could easily be long-term rentals. They aren’t, but that doesn’t mean that they wouldn’t be in the future potentially.
@@ShelbyChurch Midterm rental is really not *that* different. Even if the stay is longer than a week or two, the ADU is not a primary residence like housing supply refers to... it's probably traveling nurses and other people passing through staying there. So it's not contributing to the LA housing supply. Which is fine, it's her life, but to position it that way feels ingenuine.
ADUs are a modest solution to the housing shortage. It is true that this ADU is adding to the housing supply and can reduce demand for local residences putting a deflationary pressure on rent and property prices
@@striketochill It still adds supply to the number of midterm rentals and makes other landlords less likely to pick doing a midterm rental versus long term rental
10:40 she didn't add any housing units. she added rentals for tourists. this does nothing for the housing market unless she rents long term to locals or sells.
They could be converted to long term housing at any point, so they are new housing units. If she sold them one day a different owner might prefer long term (it’s less work)
@@EricWinsAtLife nope. doing this raises actual housing costs for locals. that's why some cities have banned Airbnb entirely, such as NYC, and I believe Palm Springs his began heavily taxing these short-term rentals for the same reason. Shelby made a video on it sometime last year even. these actions are not victimless and end up hurting the business owner in the long run as well.
@@AccidentalHorcrux yeah as a local that air bnbs out my house in order for me to afford a house I live in I have to disagree, airbnb is helping me afford housing and not just leaving money into the hands of the corporations but to the individual. That mindset is what will keep you in that Victimhood mentality forever. I probably won’t change your mind but just giving my point of view. I love meeting people around the world and welcoming them into my home chatting with them and having them pay my bills 😂
Kind of sucks that owning a house anywhere in Calif* nowadays requires inheriting an ADU with tenants. Everything that was once single family is now a tiny home shared with an ADU with tenants.
I mean you can withdraw the ADU from the rental market and remove it if you buy a property. Unfortunately a property with an ADU is going to cost more.
More density in CA is worse for prospective buyers who prefer a single family home with a garage, and for current residents who park on the street. It's better for renters, current homeowners, ambitious young people, schools, cities, the state of California, local businesses, the US economy, and by extension our chances of outcompeting China in the long term and remaining a prosperous democracy. Tradeoffs 🤷♂️
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
Exactly why I don't feel bad for anyone getting foreclosed and evicted in that crash. Opportunists spending money they didn't have to speculate, taking out adjustable mortgages and trying to take advantage of people who actually needed a place to live. People with common sense and integrity took out fixed mortgages and actually paid them. Crooks walked away with bad credit and hopefully enough losses to learn their lesson
I think there is a huge difference with people who actually live on site versus the people who take multiple apartments and convert those into ADUs or people who rent party houses. They are the ones who are taking up existing housing and causing so many problems.
LA should embrace tiny homes. Single people like myself really don't need more than 600sqft generally other than storing our stuff. Maybe call it 1000sqft max for storage. It would be nice if there were millions of these little starter homes available for purchase for people who don't need over, say, 1000sqft.
Yeah, it would be cool if there were more of these! I still think there’s an issue of limited land though. building up makes sense to me - more town houses like they have in Seattle.
@@ShelbyChurch Absolutely. LA doesn't have much land available, at least within the desirable parts of the city. Even the Valley is saturated. Maybe someone will decide to make Palmdale cool and expand out there.
@@vaughn6481 Yes, I know... that's the problem. LA should be doing everything they can to increase housing inventory. I do agree with Shelby on the street parking situation, but there simply needs to be more housing available.
Single bedroom should cost between 800 - 1,300 and that's already more than the $1,300 that I use to pay for a 1200 sq ft.2 bedroom with 2 car garage 10 years ago
This is a perfect shared ADU information! Please continue to feature these series of ADU. I live around OC county that I’m planning on adding an ADU to my backyard which is a pool area right now, that we’re don’t even use anymore. Would love to learn and have more information on ADU and the processes. Would she be able to share the contractors and sources that she is using to do all the steps to build this ADU? If they’re great work experience I would love to use them as well.
Hey Shelby - Would it be quicker and less hassle if Krista went with Boxable prefab casita? They start at $60,000 for 360 sqft. You need to add foundation/hookup of utilities for about $15,000 but you can skip architect fees and pass inspection way easier. I think im gonna to do it on my property.
I know Los Angeles has so many regulations when building/renovating a home but it is important because of safety issues. I watch lot of renovations in different states where additions are not up to code and potential putting habitant’s lives in jeopardy.
Yes people complain about all the regulations and I’m sure improvements can be made, but look at Florida where that condo collapsed because it was not built to code
Not true! Most of the regulation is great for safety but not all is necessary for safety. Have you ever built a home in California ? I’m not trying to be rude but when people like you make statements like this it implies there is no wiggle room to address the insane building code requirements.
@@calimolotov2000 Can you provide an example of an ‘insane’ building code requirement? I ask because speaking in absolutes doesn’t help either. In fact, you are doing exactly what you are accusing the commenter of doing.
Living in LA county, I can tell you it is not somewhat controversial it is VERY controversial because of the density that is already here, the irresponsibility of the owners which is clear in this vid and also the limits on parking, the noise and uncertainty of who is going to rent the property...😮
@@safeandeffectivelol A neighborhood isn't just the street the houses are on.. it's everything around it. It's walking a block or a few to a store or a transit stop. This is a street that is part of a neighborhood. Also, cities just need to change zoning in unwalkable areas to bring work, shops, and entertainment closer to homes. Also, allow for more multi-family units and change some car lanes to bus and bike lanes
@@lucristianxoh no, she's horrible. She literally wanted to only pay for the least safe, lowest quality work, dress it up nice and rake in money. She'd screw her renters, neighbors and her own house. People like this is why all these annoying regulations had to be codified. I'd be willing to bet she never even notified her property insurance of 2 short term rentals, just to pinch some pennies.
Curious why they didn't add a door to the bedroom to make it a true one-bedroom ADU. I bet there was some interesting conversation about that with the architect. Would be great to hear about.
I wish small ADUs also have to contribute to the schools. Everyone in the community from kids getting a good education and then eventually going on to become well adjusted adults.
yes! when they said families are not living in spaces under 500 sq ft i was like really? all i see on fb is families looking for adu or back houses. these used to be lower but they are now renting for like 2k+
$3,500-$4,000 /Month is INSANE for a place with no view and a questionable parking situation. A neighbor split their 2 story home into 4 separate units and it is HELL trying to find parking since everyone has 1-2 cars
LA should regulate how many cars each house should have…..controversial but I’ve seen one apartment with a family of 4 (2 parents, 2 kids) own 3-4 damn cars! And took up all the backyard space. Oh and don’t get me started on why ppl in LA don’t get ticketed for double parking.
@@chinchillin6280 my neighbors have parked in the fire lane for atleast 8 months. they leave their car there for days sometimes, and they'll even park another car behind it. all of this on a ONE LANE alleyway that has multiple garages (that they block)
@@chinchillin6280 we let the cops know before when they were in the area for an accident and they said "yea......well u gonna make a report online and then we'll get to it eventually but other things take priority as u might imagine" so basically they dgaf. ive wanted to sideswipe them soooooo bad so the cops HAVE to come and do an accident report and give them a ticket or tow their car and then pay for my damages since they're illegally parked and partially blocking the lane, but im sure that would suck to deal with
Nicely done Shelby! For me, I like that Krista did her due diligence and contacted the neighbors and let them know if they had issues, to let her know so she could get them fixed. That is a VERY big hurdle to get over and at least let the neighbors know what's happening. Costs? Everything in California costs more...could probably build the same units in my backyard here in Texas for under $40k. The parking stuff is BIG there. Having off street parking is also key to keeping your neighbors happy. Especially if they don't have off street parking themselves. As Krista found out, DO NOT do this without permits...if you do, even if the building inspector doesn't notice it...it will make it impossible to sell the property as you'll have to rip it down and put whatever was there back. UGLY and EXPENSIVE!
its not a house its an ADU so ADU does not need a garage and doesn't need fire sprinkler and other fees and you don't have to upgrade the water meter etc so basically you save 200k minimum on the fees and extra nonesense that the city asks you to do compare to a house that you can sell
Loved this! This is what I was hoping you would do on your SFR journey... it would be great for content & you could live in any of the units based on how your life changes.
I know a contractor who can build this entirely just like above for 150k, 1 OAK Remodeling. Good Job Shelby above looks awesome!! Keep up the good work!
I can see why she does short term. Landlords have no rights in LA with long term tenants. You pick the wrong person you can’t get them out. Also, rent caps and other laws. Owners got screwed during COVID and many got no rent for years. They still had to pay for insurance and property taxes. Los Angeles is pushing the small landlord out. They are all selling to large companies.
@@ashishpatel350 I disagree because they have no rights till they have been there 30 days. Also, I believe you can do a contract for 30 days and get a security deposit as well.
The hardest part of doing anything on your own is the permitting process since it takes absolutely forever. Super annoying. LA should be printing permits as fast as they can to increase housing inventory.
I am pretty sure that currently building ADUs in all of California is legal and very recently the property can be split to sell the dwelling separately. 🤔
this doesn't add to the housing supply. this takes away housing from residents that are long term people. things like this are the reason housing is so unaffordable. 3-4 grand a month for a studio is mental. youd have to make over 200k a year to afford that rent. and the only way she can get that rent is through airbnb
No, it doesn’t add to the housing, but it definitely doesn’t take away either… if she had the goal of renting a place out, she also had every right to buy a separate home to put on Airbnb (taking away from the housing market) but instead, she converted a garage and built another small home on her property (that weren’t used for housing before, and aren’t used for housing now) therefor, not affecting the housing market. Except that perhaps people would stay in her ADU for a few months rather than renting out a different home (which would take away from the housing market), so in that perspective, she’s helping the housing market.
@@ashishpatel350 okay based on you lack of explanation I’m gonna assume you don’t know what that means. I explained how it doesn’t take away., if anything, it adds
@@payad4778 those permits are on the idea that it will be rented out to a long term tenant. She isn't adding to the housing stock she's part of the problem. It's one of the reasons why home owners insurance is off the charts is because people are using their property for commercial use
Yes basically lol. However there’s way more work that goes into approving a permit, it’s pretty simple to write a cease and desist. Still agreed, though that 14 months is crazy to get that permitted.
@@ShelbyChurch This video was helpful and inspiring. Currently planning to build ( in Santa Cruz Mountains). Considering modular for now. Loved what she did with trad construction!
I mean, it seems like a great accomplishment and everything but it’s still Airbnb so is it really increasing like actual rentals or I don’t know I mean, I get what you’re saying. I’m not saying that it’s bad necessarily, but the whole Airbnb thing is really not had a great effect on a lot of neighbourhoods and major cities, specially.
I think investors should always put their cash to work, especially In 2025, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2025
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
My CFA Julianne Iwersen Niemann a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Crazy that she didn’t realize she had to get permits. I live in a tiny Midwest town and I know you have to get permits for a fence even. Surprised LA allows more than one ADU per residence.
Question about your property taxes. Do you have to pay on the access value of your property based on the current market value or the cost of building the ADU? Thank you
Living in an ADU is like living in your parents basement. always having to walk by the main house…. What is the point of a house anymore in LA if you gonna have people looking at you all day and night????
@jasonfournier - Not worth it to YOU...and that's fine. But you do realize it's worth it to millions of other people right? 1 in 8 people living in the US lives in California. LA is the 2nd largest city in America. It's worth it to millions of people.
that's nothing, city of Los Angeles now charges a linkage fee for additions over 1,500 sq ft. depending where in la you live it can run from $15 to $21 per new square footage.
You need to get it permitted, but in Los Angeles pretty much everywhere you are allowed to do it. I’m not a complete expert though so you need to check with the local jurisdiction because it kind of depends where you’re at
Neighbors also dislike them due to investors buying a home adding a home and flipping it or renting all units out. It would be interesting to know how long. The person in the video continues to live at the home. Or does she then move out to the suburbs with it's quite and not as dense.
its very congested in LA. No green back yard. just a cement parking space. lots of crime in LA. must be easy to break into a small house. Come out to Joshua Tree. get a 2 acer lot for $30 grand. put your small house on the 2 acer lot. No crime in Joshua Tree. rural Joshua Tree. Not in town.
I'm looking at this video and I'm like damn this looks so familiar! I went back in my Airbnb history and there it was. I stayed here in June 2021. It's a beautiful space and gorgeous neighborhood! She did a phenomal job and I own two Airbnb's myself. I love the ADU concept!
So my dad's adu above his garage had neighbors mad because of street parking. So we then pointed out that the ADU has its own driveway parking spot in front of the entrance gate to ADU. Now only one neighbor has an issue, since his family used to park on our driveway when we weren't home.
As soon as I saw the title I knew that she either built this on land she ( or someone in her family) already owned. Land is what is expensive in Los Angeles. My neighbors home got completely destroyed some months ago - crushed by a large pine tree . Leaving the home red tagged and inhabitable. And Yet- it was listed for sale for 499,999 - just under half a million for a demolished house on a super tiny lot.
The land cost will be different in every case, you can easily get an idea of what it would be if you go on Zillow. Usually a lot this size in this area would be around 800 K to 1.5 million depending on the existing house condition
@@ShelbyChurch : First off, thanks for your video and your reply! You are awesome, Shelby! (Sincerely asking). Shouldn't the cost of the lot ($800K to $1.5M) also at the very least be mentioned, because it gives a full perspective?
@@Jeroen74 : Bruh! Ownership is all good. If I want to know what I'm going to financially commit to, then I want to account for all expenses, including my mortgage or full payment for the land.
@@NewtralHuman You have to remember they bought the main house that included the land. The cose of the main home/land have nothing to do with the cost to build the ADU"s.
i'm not 100% sure, but I believe your guest is actually breaking the law in the city of Los Angeles. The ADU permit is great additional housing, not short term rentals. So her using it for Airbnb may be illegal. There was the ability to do that prior to 2017, but I believe now you can only post Airbnb in your primary residence. You may be able to do Airbnb for a secondary residence on the same property, but you are not allowed to have more than one Airbnb rental. This is as per Airbnb's website and their instructions on what is allowed in the city of Los Angeles. What this looks like to me is that the guest of the show is actually playing fast and loose pretty much all the time she didn't pull permits to convert a garage into a residence, and had she not been caught, she would've continued to do this. She was lucky that she got caught, because she found problems she wouldn't have otherwise found. But I don't think that she's learned her lesson. I suspect it's a very bad idea that she did this with you, as someone may discover that she's breaking the city laws.
Building in LA seems to not be too bad. I was quoted 500k for 3000sqft modern with box roof so the trick is to get a decent lot. And new is always best. The more hideous the tear down the better. It freaks other buyers out.
What’s the point of blurring out the street address number on some scenes on this video and not all of them? Plus the numbers are visible on the thumbnail too?
hi everyone - thanks for watching this video!
The goal was to teach people who are unfamiliar with ADU’s about them: how much they can cost, how long it takes to build, what kind of fees you can expect.
believe it or not, a LOT of people are unfamiliar with the term “ADU” - which is why I didn’t use it in the title. Many of you that clicked on the video are kind of in the real estate niche - but you have to remember that the average person might not know what an ADU is (I meet people like this all the time!)
A lot of people I know are frustrated that it’s an Airbnb. I totally get that. I’d love to see more people turn these into long term rental units too. But it’s not my property and Krista is free to do whatever she wants with it. Many other people are building them with the intention of making them long term rentals, a place for elderly parents to live, etc. which is really cool to see. Not everyone is making them airbnbs - just in this case she did make it a 28 day+ airbnb.
Let me know what you would do with the property if you built one of these!
How did she pay for it?
Hi Shelby. Would you be so kind as to have a quick chat with me about your project? I would like some information on your build for an ADU.
Hey! I work for an ADU contractor in Upland, CA. I’d love to set up some time to talk and see how we can help! I’m sure your viewers would love to see another perspective on this topic!
@@ShelbyChurchDo you living in La Cañada Flintridge, CA, Shelby?
@@ShelbyChurch she set it at 28 days because when people stay for 30 they automatically become tenants and the owner will be forced to charge the market rate, not the Airbnb rate which is often double to triple market rate for rent. This is sounding more and more illegal the more I’m reading the comments! Well if anyone is interested the city of LA takes illegal housing very seriously and maybe the hosting authority needs to be involved. Because who only needs to stay somewhere for 28 days and not an actual month. I’m sorry not this is super trashy.
How to build a house for $158,000 in LA.
Step 1: Already have a (on average) $941,784 property
Lol. It's not a house but a garage )).
After I saw that in the video I clicked off for it being misleading
Came here to say this!
@@brokeboy87I reported the video because f* greed
*her husband bought it
I think it's controversial because so many people who build ADUs don't actually add to the housing supply for residents, just like this example. They built 2 new units and 0 of them will be available to local residents, because they prefer to and get more money from Airbnb. They contribute to rising rents while taking resources, like street parking, from the community.
People on Airbnb would rented a normal market unit.
So it is adding to the housing supply. Two shorter term rentals allow for a normal unit to be kept free.
It's her property.
First of all, She can do whatever she wants, it's her property... Also It's not her responsibility to add to the housing market... Blame the politicians you voted for... the reason housing is so expensive and there are no affordable housing is the high cost and the crazy hoops it takes to build here in california... So many permits that take years to clear, all the fees and taxes, even a homeless tax is added to the cost of building , the high cost of property taxes..In San Bernardino there is even some crazy Kangaroo Rat tax to pay for the displaced rats... It cost so much to build,the builder would lose money on affordable housing... If you all would stop voting for Bond Measures our property taxes wouldn't be so high..
When someone builds an ADU and rents it out on Airbnb, it can still indirectly free up housing in other areas. Here's how: if a traveller, temporary worker, or someone looking for short-term accommodation rents an ADU instead of a regular house or apartment, they leave those longer-term housing options available for people who need permanent residences.
Theres no new constructions going up in that neighborhood
just a bad take; infill = increased supply. not everywhere allows airbnb and not everyone wants to run aSTR… it could allow kids to live at home, elderly, or anyone who would value a small apace while providing resources for the local economy + taxes for LA
The architect did a great job designing that unit. Looks way bigger than 499 sq. ft.
It definitely felt way bigger!
Lol, she didn't "build a house for $158,000." She built an ADU (basically a shed) on an existing property with a home. So you'd have to count the price of that home and the lot. Also, she doesn't even "rent" them out, which is what the city wants to incentivize - she puts them up on Airbnb, just contributing to the housing crisis. She even skirts around the school tax with the
I’m just counting the Construction cost, but I feel like it’s common knowledge that there is a cost for the land as well but she didn’t have to pay more for the land. It was just with the house she already had.
Definitely not ideal that it’s an Airbnb, but technically it’s legal and she can do whatever she wants with it - but yes, would love to see more people leasing them to long-term tenants
@@ShelbyChurch Can you see how the title of this video is misleading? This is about building an ADU.
@@ShelbyChurch should have said that, the cost of land is what is actually expensive here in LA.
@@bparth1896 Airbnb needs to be taxes like a commercial space. Same with insurance and loans
Yep. Cheating everyone to make a personal buck.
First of all, the ADU is beautiful. But……. this is not adding “two new units to the LA supply”. From what she is saying, she’s renting them out as a short-term (or aka Airbnb rental) and that’s ALOT of money for such small units. This is money in her pocket (good for her) but does not help the housing shortage at all. Let just be honest. IMO this cavalier affirmation of $4000/month being an acceptable price is what’s driving housing and rent prices up.
It’s a midterm rental so different than a short term rental, but I totally get what you’re saying. I do think it would be cool if they were long-term rentals! I said to add to the housing supply because she sells these one day, they could easily be long-term rentals. They aren’t, but that doesn’t mean that they wouldn’t be in the future potentially.
@@ShelbyChurch Midterm rental is really not *that* different. Even if the stay is longer than a week or two, the ADU is not a primary residence like housing supply refers to... it's probably traveling nurses and other people passing through staying there. So it's not contributing to the LA housing supply. Which is fine, it's her life, but to position it that way feels ingenuine.
@@ShelbyChurch Thank you for adding some detail. It’s a great business model.
ADUs are a modest solution to the housing shortage. It is true that this ADU is adding to the housing supply and can reduce demand for local residences putting a deflationary pressure on rent and property prices
@@striketochill It still adds supply to the number of midterm rentals and makes other landlords less likely to pick doing a midterm rental versus long term rental
10:40 she didn't add any housing units. she added rentals for tourists. this does nothing for the housing market unless she rents long term to locals or sells.
They could be converted to long term housing at any point, so they are new housing units. If she sold them one day a different owner might prefer long term (it’s less work)
@@ShelbyChurch I hope so because the city already has enough hotels etc for tourists.
She has every right to do whatever she wants with her property. American dream!
@@EricWinsAtLife nope. doing this raises actual housing costs for locals. that's why some cities have banned Airbnb entirely, such as NYC, and I believe Palm Springs his began heavily taxing these short-term rentals for the same reason. Shelby made a video on it sometime last year even. these actions are not victimless and end up hurting the business owner in the long run as well.
@@AccidentalHorcrux yeah as a local that air bnbs out my house in order for me to afford a house I live in I have to disagree, airbnb is helping me afford housing and not just leaving money into the hands of the corporations but to the individual. That mindset is what will keep you in that Victimhood mentality forever. I probably won’t change your mind but just giving my point of view. I love meeting people around the world and welcoming them into my home chatting with them and having them pay my bills 😂
Kind of sucks that owning a house anywhere in Calif* nowadays requires inheriting an ADU with tenants. Everything that was once single family is now a tiny home shared with an ADU with tenants.
Sucks. I look for homes on zillow and every thing has a dumb ADU now. I spent years in an apartment.....I want an effing garage!
I mean you can withdraw the ADU from the rental market and remove it if you buy a property. Unfortunately a property with an ADU is going to cost more.
@@NatashaEstradathat’s true but like you said what could have been 900k with a garage and yard is now 1.4mil with an adu. thats pricing some of out.
@@NatashaEstrada not really you still pay the taxes etc and people will bid up those properties because of the cash flow not because they need a home
More density in CA is worse for prospective buyers who prefer a single family home with a garage, and for current residents who park on the street. It's better for renters, current homeowners, ambitious young people, schools, cities, the state of California, local businesses, the US economy, and by extension our chances of outcompeting China in the long term and remaining a prosperous democracy. Tradeoffs 🤷♂️
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
Exactly why I don't feel bad for anyone getting foreclosed and evicted in that crash. Opportunists spending money they didn't have to speculate, taking out adjustable mortgages and trying to take advantage of people who actually needed a place to live.
People with common sense and integrity took out fixed mortgages and actually paid them. Crooks walked away with bad credit and hopefully enough losses to learn their lesson
I think there is a huge difference with people who actually live on site versus the people who take multiple apartments and convert those into ADUs or people who rent party houses. They are the ones who are taking up existing housing and causing so many problems.
Exactly. It’s Greed.
LA should embrace tiny homes. Single people like myself really don't need more than 600sqft generally other than storing our stuff. Maybe call it 1000sqft max for storage. It would be nice if there were millions of these little starter homes available for purchase for people who don't need over, say, 1000sqft.
Yeah, it would be cool if there were more of these! I still think there’s an issue of limited land though. building up makes sense to me - more town houses like they have in Seattle.
@@ShelbyChurch Absolutely. LA doesn't have much land available, at least within the desirable parts of the city. Even the Valley is saturated. Maybe someone will decide to make Palmdale cool and expand out there.
The difference between 600sqft and 1000sqft can be more then a Grand each montth in places like LA.
It's actually not possible to permit the build of tiny homes on LA county land unless it's an ADU. Permitting in LA is wild.
@@vaughn6481 Yes, I know... that's the problem. LA should be doing everything they can to increase housing inventory. I do agree with Shelby on the street parking situation, but there simply needs to be more housing available.
Wow, that price of rent is insanely high and parking in los angeles is hectic.
Single bedroom should cost between 800 - 1,300 and that's already more than the $1,300 that I use to pay for a 1200 sq ft.2 bedroom with 2 car garage 10 years ago
She did a great job. I like it. My contractors had to pull a permit to replace my HVAC unit and a permit to rewire the electrical.
Great video! Amazing what she was able to do with such a small footprint!
Shelby, now this is terrific! This makes so much sense! Thanks for putting this together!! A+++
Thanks for the breakdown of the cost.
3000$ plus on the slow months is crazy rent for a studio, y'all LA people are crazy to live there.
Depends if you work in tech or not, silicon valley salaries are several times higher than those in the rest of the US and the developed world.
@@TomNook. Only for the top 20% who work for big tech. The startups do not pay nearly as well. Where are the rest of the workers supposed to live?
@@safeandeffectivelol- It's simple really, live where you can afford. If that's in the city, great. If not, it'll be outside the city.
Well I paid to stay here a few years ago and had the best stay. Free parking was a plus. I didn't want to stay in a hotel. To each their own!
It's great for homeowners, but it sucks for renters.
This is a perfect shared ADU information! Please continue to feature these series of ADU. I live around OC county that I’m planning on adding an ADU to my backyard which is a pool area right now, that we’re don’t even use anymore. Would love to learn and have more information on ADU and the processes. Would she be able to share the contractors and sources that she is using to do all the steps to build this ADU? If they’re great work experience I would love to use them as well.
lmao at the Maybelline ad >.
Hey Shelby - Would it be quicker and less hassle if Krista went with Boxable prefab casita? They start at $60,000 for 360 sqft. You need to add foundation/hookup of utilities for about $15,000 but you can skip architect fees and pass inspection way easier. I think im gonna to do it on my property.
I know Los Angeles has so many regulations when building/renovating a home but it is important because of safety issues. I watch lot of renovations in different states where additions are not up to code and potential putting habitant’s lives in jeopardy.
Totally agree
Yes people complain about all the regulations and I’m sure improvements can be made, but look at Florida where that condo collapsed because it was not built to code
Not true! Most of the regulation is great for safety but not all is necessary for safety. Have you ever built a home in California ? I’m not trying to be rude but when people like you make statements like this it implies there is no wiggle room to address the insane building code requirements.
@@calimolotov2000 Can you provide an example of an ‘insane’ building code requirement? I ask because speaking in absolutes doesn’t help either. In fact, you are doing exactly what you are accusing the commenter of doing.
Californias mandatory solar panels on all new homes.
Living in LA county, I can tell you it is not somewhat controversial it is VERY controversial because of the density that is already here, the irresponsibility of the owners which is clear in this vid and also the limits on parking, the noise and uncertainty of who is going to rent the property...😮
3:29 I cant believe they put an ad placement on this piece that is too obvious.
literally i thought it was hilarious but it def caught my attention
EXACTLY!
I think its funny too but get your bag Shelby!!
I'm all for ADUs everywhere.
If cities were more walkable with good transit parking should be an afterthought
Except these neighborhoods were built decades ago, so to demand that they suddenly be made more walkable now is absurd.
@@safeandeffectivelol A neighborhood isn't just the street the houses are on.. it's everything around it. It's walking a block or a few to a store or a transit stop. This is a street that is part of a neighborhood.
Also, cities just need to change zoning in unwalkable areas to bring work, shops, and entertainment closer to homes. Also, allow for more multi-family units and change some car lanes to bus and bike lanes
4k rent is still insane. That means you must make 208k after tax.
Yea it’s a month to month so if it was long term rental it would likely be less
@@ShelbyChurch I just stare at LA with horror. Not so much her, she’s charging market rate.
@@lucristianxoh no, she's horrible. She literally wanted to only pay for the least safe, lowest quality work, dress it up nice and rake in money.
She'd screw her renters, neighbors and her own house. People like this is why all these annoying regulations had to be codified.
I'd be willing to bet she never even notified her property insurance of 2 short term rentals, just to pinch some pennies.
@ welcome to capitalism. You don’t get great returns spending a lot to money.
Curious why they didn't add a door to the bedroom to make it a true one-bedroom ADU. I bet there was some interesting conversation about that with the architect. Would be great to hear about.
with how overpriced that adu was to build i estimate a simple door and frame would add on another $18,000 to costs.
I wish small ADUs also have to contribute to the schools. Everyone in the community from kids getting a good education and then eventually going on to become well adjusted adults.
They do with their property taxes I believe
yes! when they said families are not living in spaces under 500 sq ft i was like really? all i see on fb is families looking for adu or back houses. these used to be lower but they are now renting for like 2k+
Great video!
$3,500-$4,000 /Month is INSANE for a place with no view and a questionable parking situation.
A neighbor split their 2 story home into 4 separate units and it is HELL trying to find parking since everyone has 1-2 cars
LA should regulate how many cars each house should have…..controversial but I’ve seen one apartment with a family of 4 (2 parents, 2 kids) own 3-4 damn cars! And took up all the backyard space. Oh and don’t get me started on why ppl in LA don’t get ticketed for double parking.
@@chinchillin6280 my neighbors have parked in the fire lane for atleast 8 months. they leave their car there for days sometimes, and they'll even park another car behind it. all of this on a ONE LANE alleyway that has multiple garages (that they block)
@@redriver15262isn’t it annoying?! We need better enforcement 😢
@@redriver15262can you call the cops on them? Or street enforcement?
@@chinchillin6280 we let the cops know before when they were in the area for an accident and they said "yea......well u gonna make a report online and then we'll get to it eventually but other things take priority as u might imagine" so basically they dgaf. ive wanted to sideswipe them soooooo bad so the cops HAVE to come and do an accident report and give them a ticket or tow their car and then pay for my damages since they're illegally parked and partially blocking the lane, but im sure that would suck to deal with
Nicely done Shelby! For me, I like that Krista did her due diligence and contacted the neighbors and let them know if they had issues, to let her know so she could get them fixed. That is a VERY big hurdle to get over and at least let the neighbors know what's happening. Costs? Everything in California costs more...could probably build the same units in my backyard here in Texas for under $40k. The parking stuff is BIG there. Having off street parking is also key to keeping your neighbors happy. Especially if they don't have off street parking themselves.
As Krista found out, DO NOT do this without permits...if you do, even if the building inspector doesn't notice it...it will make it impossible to sell the property as you'll have to rip it down and put whatever was there back. UGLY and EXPENSIVE!
Unbelievable how this shoebox made of cardboard and pine can cost $158k to build. Crazy time to live
its not a house its an ADU so ADU does not need a garage and doesn't need fire sprinkler and other fees and you don't have to upgrade the water meter etc so basically you save 200k minimum on the fees and extra nonesense that the city asks you to do compare to a house that you can sell
So true
Loved this! This is what I was hoping you would do on your SFR journey... it would be great for content & you could live in any of the units based on how your life changes.
I know a contractor who can build this entirely just like above for 150k, 1 OAK Remodeling. Good Job Shelby above looks awesome!! Keep up the good work!
158k actually seems crazy expensive to build a small structure on land you already own.
And 3,000- 4,000 to rent that small space in that crummy neighborhood
@@KatWells-b6z It's actually a very nice neightborhood. Where did you get the impression that it was crummy!? Have you been to L.A?
@@kristinrodriguezrealtordmv3434 all the close parking . I was born and raised in Los Angeles
It looks south of Adams and near Hauser
I can see why she does short term. Landlords have no rights in LA with long term tenants.
You pick the wrong person you can’t get them out. Also, rent caps and other laws. Owners got screwed during COVID and many got no rent for years. They still had to pay for insurance and property taxes. Los Angeles is pushing the small landlord out. They are all selling to
large companies.
@@DPitt-ty4sd short term is worse since you have no real contract
@@ashishpatel350 I disagree because they have no rights till they have been there 30
days. Also, I believe you can do a contract for 30 days and get a security deposit as well.
You should have put "ADU" Iin your title. Would get wayyyy more views
I feel like a lot of people I talk to don’t know what ADU’s are!
I think it might just be a California thing
The hardest part of doing anything on your own is the permitting process since it takes absolutely forever. Super annoying. LA should be printing permits as fast as they can to increase housing inventory.
Very true! The insanity of the permitting process is enough to cause kill a project upfront
@@WildWest144 Wow!
I am pretty sure that currently building ADUs in all of California is legal and very recently the property can be split to sell the dwelling separately. 🤔
Did she mention how much was the permit cost per ADU? I have a massive front yard and want to see about putting 2 ADUs!!
She did yes it’s in the video!
this doesn't add to the housing supply. this takes away housing from residents that are long term people. things like this are the reason housing is so unaffordable. 3-4 grand a month for a studio is mental. youd have to make over 200k a year to afford that rent. and the only way she can get that rent is through airbnb
No, it doesn’t add to the housing, but it definitely doesn’t take away either… if she had the goal of renting a place out, she also had every right to buy a separate home to put on Airbnb (taking away from the housing market) but instead, she converted a garage and built another small home on her property (that weren’t used for housing before, and aren’t used for housing now) therefor, not affecting the housing market. Except that perhaps people would stay in her ADU for a few months rather than renting out a different home (which would take away from the housing market), so in that perspective, she’s helping the housing market.
@@payad4778 it takes away from housing and are meant to be a rental property not a hotel
@@ashishpatel350 okay based on you lack of explanation I’m gonna assume you don’t know what that means. I explained how it doesn’t take away., if anything, it adds
@@payad4778 those permits are on the idea that it will be rented out to a long term tenant.
She isn't adding to the housing stock she's part of the problem. It's one of the reasons why home owners insurance is off the charts is because people are using their property for commercial use
@@ashishpatel350 oh okay that does make sense about home insurances going up. Still doesn’t take away from the housing market though.
You might call one more unit in LAs housing crisis, but looks more like one more hotel room to me.
love videos like this!!
It took the inspector a few hours to draft a cease and desist. It takes them 14 months to issue a permit.
Yes basically lol. However there’s way more work that goes into approving a permit, it’s pretty simple to write a cease and desist. Still agreed, though that 14 months is crazy to get that permitted.
@@ShelbyChurch This video was helpful and inspiring. Currently planning to build ( in Santa Cruz Mountains). Considering modular for now. Loved what she did with trad construction!
I mean, it seems like a great accomplishment and everything but it’s still Airbnb so is it really increasing like actual rentals or I don’t know I mean, I get what you’re saying. I’m not saying that it’s bad necessarily, but the whole Airbnb thing is really not had a great effect on a lot of neighbourhoods and major cities, specially.
I think investors should always put their cash to work, especially In 2025, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2025
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
My CFA Julianne Iwersen Niemann a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
Crazy that she didn’t realize she had to get permits. I live in a tiny Midwest town and I know you have to get permits for a fence even. Surprised LA allows more than one ADU per residence.
That rent is stupid high. And under 500 sq feet, ridiculous. 3k for rent is absurd.
Question about your property taxes. Do you have to pay on the access value of your property based on the current market value or the cost of building the ADU? Thank you
Lol I love that she admitted to starting with planning permission and a proper contractor
The cost of the land?
Nice video, would like to see a floorplan of this ADU.
I loved this video!!!!!!! I love real estate development videos!! very interesting!!! Nice work once again, Shelbs!!!!
Hi shelby, do you mind sharing who were the direct crew of people who built this model? Thank you!
Who did you hire for your architect? I'm looking for one now for an addition. Did that cost also include structural engineer?
Living in an ADU is like living in your parents basement. always having to walk by the main house…. What is the point of a house anymore in LA if you gonna have people looking at you all day and night????
My dad built 2 adu in true SFV area. Basically a studio and 1 bedroom. Instantly rented out as he had no idea what the going rate was for apartments.
All the fees and permits (especially in California) are crazy what you have to go through before building a house, even a tiny house or ADU.
Imagine paying $3000 per month for that.
In LA this is like a fair price though 😅
You obviously don't live in California to write that. What you wrote isn't new. LA didn't just recently become expensive.
@@ronin7645 Yeah we all get that. My $550k (at the time) house is less. And in a not so cheap part of NJ. Sunshine not worth it.
@jasonfournier - Not worth it to YOU...and that's fine. But you do realize it's worth it to millions of other people right? 1 in 8 people living in the US lives in California. LA is the 2nd largest city in America. It's worth it to millions of people.
Krista is a boss
Funny how she did the bare minimum to escape taxes.
She does pay taxes! She pays real estate taxes on the property of course. I think you’re referring to the school fee?
@@ShelbyChurch School Tax
that's nothing, city of Los Angeles now charges a linkage fee for additions over 1,500 sq ft.
depending where in la you live it can run from $15 to $21 per new square footage.
Duh, anyone would.
I would love to have the contractor name that built that out for that price?
Me too! Please do share!
That is awesome! I would think it was that cheap!
Do you need approval from the city to built an ADU in your backyard? I mean for a non HOA house
You need to get it permitted, but in Los Angeles pretty much everywhere you are allowed to do it. I’m not a complete expert though so you need to check with the local jurisdiction because it kind of depends where you’re at
Neighbors also dislike them due to investors buying a home adding a home and flipping it or renting all units out. It would be interesting to know how long. The person in the video continues to live at the home. Or does she then move out to the suburbs with it's quite and not as dense.
Love the cross cutting editing in the interview! Like 60 Minutes!
SMART!!!!!!!!!!!!!! MAKE YOUR MONEY WORK FOR YOU!!!!!!!!!!!!!!!!!!!!
its very congested in LA. No green back yard. just a cement parking space. lots of crime in LA. must be easy to break into a small house. Come out to Joshua Tree. get a 2 acer lot for $30 grand. put your small house on the 2 acer lot. No crime in Joshua Tree. rural Joshua Tree. Not in town.
Rental price is criminal.
Girl that's a shed
It’s actually really nice! It’s nicer than my apartment lol
@@ShelbyChurch ok we should hook up maybe sometime help me sell some real-estate
I'm looking at this video and I'm like damn this looks so familiar! I went back in my Airbnb history and there it was. I stayed here in June 2021. It's a beautiful space and gorgeous neighborhood! She did a phenomal job and I own two Airbnb's myself. I love the ADU concept!
The world is small! Curious what neighborhood that is?
@@marinaromanova149 Very small World! It's a really nice residential neighborhood.
How did effect insurance and real estate tax?
Those would both go up according to how it’s appraised
Yes insurance and appraisef value would be higher but ir doesn't change basic cost a lot usually cover all by one month of rent.
So my dad's adu above his garage had neighbors mad because of street parking. So we then pointed out that the ADU has its own driveway parking spot in front of the entrance gate to ADU. Now only one neighbor has an issue, since his family used to park on our driveway when we weren't home.
Awesome video new sub
As soon as I saw the title I knew that she either built this on land she ( or someone in her family) already owned. Land is what is expensive in Los Angeles. My neighbors home got completely destroyed some months ago - crushed by a large pine tree . Leaving the home red tagged and inhabitable. And Yet- it was listed for sale for 499,999 - just under half a million for a demolished house on a super tiny lot.
@ShelbyChurch : We need to get the whole story about the cost.
What does the land cost?
The land cost will be different in every case, you can easily get an idea of what it would be if you go on Zillow. Usually a lot this size in this area would be around 800 K to 1.5 million depending on the existing house condition
@@ShelbyChurch : First off, thanks for your video and your reply! You are awesome, Shelby!
(Sincerely asking). Shouldn't the cost of the lot ($800K to $1.5M) also at the very least be mentioned, because it gives a full perspective?
@@NewtralHuman I don't think the land cost matters, because by the very definition of an ADU you already own the land it's built on.
@@Jeroen74 : Bruh! Ownership is all good. If I want to know what I'm going to financially commit to, then I want to account for all expenses, including my mortgage or full payment for the land.
@@NewtralHuman You have to remember they bought the main house that included the land. The cose of the main home/land have nothing to do with the cost to build the ADU"s.
You didn’t blur out the address at 5:28!!!
0:05 “under 200 thousand dollars” *shows > 200,000 on screen lmao*
Hi Shelby, just so you know, the thumbnail doesn't have the street number blurred like the video does.
And a few other places in the video as well.
"Two priveleged ladies gouge the marketplace as hard as they can through makeup advertising and AirBnB" should be the title. lol
Or a miserable commentor that would rather hate on these business women vs. learn from them.
It's a cute little house, I like it 😌 Inspectors are a pain in the behind, but this shows they really are useful 😅
I tried to build a 20x20 garage on my property. A literal box, not an ADU, cost estimate: 200k. I’ll be leaving California in the near future ✌️
Good balanced info about ADUs
Very nice. Whats the sqft 🎉
Do your guest know ahead of them the questions you ask them? How do you come up with content and not be repetitive?
Whyd u blur out the address in the video but not the thumbnail
Great job Shelby.
i'm not 100% sure, but I believe your guest is actually breaking the law in the city of Los Angeles. The ADU permit is great additional housing, not short term rentals. So her using it for Airbnb may be illegal. There was the ability to do that prior to 2017, but I believe now you can only post Airbnb in your primary residence. You may be able to do Airbnb for a secondary residence on the same property, but you are not allowed to have more than one Airbnb rental. This is as per Airbnb's website and their instructions on what is allowed in the city of Los Angeles.
What this looks like to me is that the guest of the show is actually playing fast and loose pretty much all the time she didn't pull permits to convert a garage into a residence, and had she not been caught, she would've continued to do this. She was lucky that she got caught, because she found problems she wouldn't have otherwise found. But I don't think that she's learned her lesson.
I suspect it's a very bad idea that she did this with you, as someone may discover that she's breaking the city laws.
She does 30+ day Airbnb stays which superseads alot of the Airbnb regulations in most areas actually.
you forgot to blur out the address at 5:28
most of the value in the average "home" cost is not the house itself but the property...
Clickbait. She didn't build a house. She built an ADU that she puts up on AirBnB.
They don't want you to know this one secret to building a house!
Own a house then build another cheaper one in your backyard.
Building in LA seems to not be too bad. I was quoted 500k for 3000sqft modern with box roof so the trick is to get a decent lot. And new is always best. The more hideous the tear down the better. It freaks other buyers out.
😱 Wow! The entire place is paid off in less than five years?
4:30
499 sqft (=>500 sqft will be taxed “school tax”)
$158,000
$317/sqft
Survey $2,300
Permit $2,500
Construction ADU $158,000 all materials
Architect $3,000
Foundation $10,000
Framing and roofing $20,000
Rough electrics plumbing HVAC $18,000
Insulation drywall stucco $24,000
Flooring and tile $10,000
Finished electrical plumbing $14,000
Paint $6,000
Windows and doors $3,500
Cabinets countertops $6,500
Shower enclosure $3,000
Solar $5,500 (minimum 5 panels required by city)
Rental $3,800-$4,000/month summer $3,300-3,500/month winter Airbnb
Her prices to build that actually were not bad.
Right, I think it was really good! She’s very smart!
What’s the point of blurring out the street address number on some scenes on this video and not all of them? Plus the numbers are visible on the thumbnail too?
Nicely composed video; I learned a thing or three! Thanks, Shelby! ^‿^
An ADU is not a "house." I like the video for the information it contains, but that title isn't just misleading, it's wrong.
Congratulations i have land also in los angeles plan to build as well. 😅
Please build a beautiful mission revival not those flimsy lifeless “modern” buildings. They won’t age well 😢
There's a lot of people here who loves to tell others how they should be spending their money.