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I Spent $58K to Convert My Sunroom Into an ADU That Earns $18K per Year
This blog post details a couple's experience converting their sunroom into a 485-square-foot accessory dwelling unit (ADU) to generate passive income and potentially house their parents. The decision to undertake this renovation was made during their home search, with the general contractor even reviewing the space before they made an offer on the house. The couple initially sought professional design help for the ADU plans but found the designer's ideas didn't maximize the space. They subsequently took on the design themselves, adding a bump-out to create a fully contained bathroom, which increased construction costs but was necessary for functionality.
For the kitchen design, the couple utilized the IKEA website's CAD tool, which offered 3D renderings and assistance with cabinet selection and measurements. An IKEA representative provided valuable input, including suggesting a rollout trash can and advising on sink compatibility and installation. The couple installed the kitchen cabinets themselves, saving $1,000 on labor costs. The entire renovation process spanned seven months, with two months dedicated to permitting. This included waiting for an engineer to finalize plans and undergoing four rounds of city inspections covering footings, foundation pouring, plumbing, and electrical work.
Having prior renovation experience, the couple stated they encountered no major surprises during the project. They funded the ADU conversion with $60,000 set aside from the sale of their previous home, aiming to stay within this budget. Ultimately, the project cost approximately $58,000, which was within their allocated budget despite experiencing "scope creep." The general contractor's initial estimate was $30,000, but the final payment for labor and materials (foundation, plumbing, electrical, drywall, and stucco) amounted to $50,000. Additional costs included $2,355 for kitchen cabinets and light fixtures, $2,000 for kitchen appliances, a washer, and a dryer, and $3,000 for bathroom tile, vanity, and lights.
An example of scope creep cited was the shower walls; a $750 budget for prefab walls was initially set, but supply-chain issues led to months of delay. The couple ultimately opted for tiling the shower, which cost $2,000 even with the cheapest available tiles. A key piece of advice offered by the couple to others considering an ADU addition is to choose a general contractor who is highly responsive and provides design suggestions and cost-saving tips. This proactive communication and guidance were seen as significant value additions to the project.
The couple's strategy for renting out the ADU involves short-term rentals on platforms like Airbnb and midterm rentals during the off-season. Based on similar rental properties in their neighborhood, they anticipate renting their ADU for $1,500 per month. This income is expected to significantly help with their $4,000 monthly mortgage payment, which they had been covering entirely since October, indicating a clear financial motivation behind the renovation project.
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