# How Garage Conversion Affects a Home’s Value

Are you wondering how garage conversion affects a home’s value?

Converting the garage of a single family home into an accessory dwelling unit (ADU) can increase a home’s value. It can also be profitable for a homeowner who doesn’t even plan on selling their home.

How can garage conversion be profitable? There are various ways that converting a garage into a living space can be profitable. One way is that it can increase a home’s value for anyone planning on selling a home.

## How Can Garage Conversion Increase a Home’s Value?

Let’s go into detail about how a garage conversion can increase a home’s value by going over some examples.

### First Example of How Garage Conversion Affects a Home’s Value in a Good Way

Let’s consider a home that has a value of \$600,000 USD and is 2,000 square feet large.

In this case, the value of each square foot is worth about \$300. If an ADU that is 400 square feet large is added to this home, the total square footage of the home will be increased to 2,400 square feet.

Therefore, the additional 400 square feet of living space multiplied by \$300 per square foot can increase the homes value by \$120,000 USD.

#### The Mathematics Behind the First Example:

Home Value Before Conversion = \$600,000

Home Size Before Conversion =  2,000 Square Feet

\$600,000 Divided by 2,000 Square Feet = \$300 Per Square Foot at Current Homes Value

Adding 400 Square Feet of Living Space x \$300 Per Square Foot = \$120,000

Home Value After Conversion \$600,000 + \$120,000 = \$720,000

In this first example, the home’s value is increased by a whopping \$120,000 by only adding 400 square feet of living space to the home. This is without a garage extension.

An extension could have increased the additional square footage of the home by even more than 400, which would have increased the homes value relatively. Therefore, if the ADU was 600 square feet instead of 400 square feet in this first example, the value of the home would have increased by \$180,000 instead of getting increased by \$120,000.

In this case with an extension of 600 extra square feet instead of 400 extra square feet, the homes value would have increased to \$780,000 from the extra 600 square feet instead of \$720,000 from the 400 square feet.

### Second Example of How Garage Conversion Affects a Home’s Value in a Good Way

Let’s consider a home that has a value of \$1,000,000 USD and is 2,000 square feet large.

In this second example, the value of each square foot would be worth about \$500. Let’s calculate how much value an ADU that is 400 square feet can add to this home.

The extra 400 square feet of living space from the ADU multiplied by \$500 per square foot can increase the homes value by \$200,000 USD.

#### The Mathematics Behind the Second Example:

Home Value Before Conversion = \$1,000,000

Home Size Before Conversion =  2,000 Square Feet

\$1,00,000 Divided by 2,000 Square Feet = \$500 Per Square Foot at Current Homes Value

Adding 400 Square Feet of Living Space x \$500 Per Square Foot = \$200,000

Home Value After Conversion \$1,000,000 + \$200,000 = \$1,200,000

In this second example, the home’s value is increased by a whopping \$200,000 by only adding 400 square feet of living space to to the property with an ADU. This is without an extension.

An extension could have increased the additional square footage of the home by even more than 400. The homes value could have increased by relatively more based on the extra square footage of the extension.

Let’s consider if the ADU was 600 square feet with an extension instead of 400 square feet in this second example. In the case of this second example, an ADU with an extension of 600 square feet could raise the value of a home by an additional \$300,000 compared to the 400 square foot ADU raising the homes value by \$200,000.

Therefore, in this case, if the ADU was 600 square feet instead of 400 square feet, the homes value would have increased to \$1,300,000 from the extra 600 square feet instead of being raised to \$1,200,000 from the 400 square feet.

## Increase Your Homes Value by Converting a Garage into an ADU

Are you planning on converting your garage into an ADU in LA County? We are known for offering some of the best garage conversion Los Angeles has to offer. A California garage to ADU conversion can be an extremely beneficial thing for your life and your future.

A recently passed law called Senate Bill 1069 has made converting a garage into an ADU easier than ever to legally accomplish in California. A garage conversion contractor near you can help with remodeling your old garage into a legal living space!

Don’t settle for anything but the highest quality work in your home. All American Builders has over 13 years of experience in the industry.

Find us on Google Maps today! Provide us with the details of your project and we would love to turn all your home improvement desires into a reality.

# What is an Accessory Dwelling Unit?

An Accessory Dwelling Unit, also called ADU, is what Senate Bill 1069 (SB-1069) refers to as a secondary housing unit for residential homes which have been been developed from a garage conversion.

Prior to the recently passed law SB-1069, converting a garage into a living space was a much harder thing to legally accomplish.

## Purpose of SB-1069 for Accessory Dwelling Units

This law was passed in order to provide additional low cost housing options for home renters. In addition, the law is also beneficial to homeowners due to the fact that it provides the opportunity to make additional income.

Are you wondering, how can garage conversion can be profitable? There are various reasons how converting a garage can be profitable. The main way it adds additional income for property owners is due to the fact that they can now convert their garages into these new living spaces that can be rented out.

This is a win win situation for renters and landlords due to the fact that renters can save money as a result of affordable rent for these ADUs, while landlords can make extra money as a result of them.

## Accessory Dwelling Unit Benefits Overview

• Provides additional low cost housing options for renters.
• Provides additional income for property owners.

Accessory dwelling units benefit the economy mainly for these reasons. Increased amounts of people get to save money while at the same time an increased amounts of people get to make extra money. This creates economic efficiency and has a positive impact on the economy.

Are you thinking about converting your old garage to an ADU? At All American Builders, we’re known for providing some of the best garage conversion Los Angeles has to offer.

Don’t settle for anything but the highest quality work. Get in touch for more information and to go over the details of a project you have in mind.

# How to Save Money on Remodeling

Are you wondering how to save money on remodeling?

There are various things a homeowner can do to save money on a project. By looking at the cost factors of a remodel project, you can decide on where you can possibly cut down on costs.

## Some Cost Factors of Remodeling

There are a variety of cost factors that go into remodel projects. You can save money on remodeling by adjusting some of the decisions you make related to the job.

• Demolition
• Materials
• Labor

## Save Money on Remodeling by Adjusting Cost Factors

These three cost factors can be adjusted in order to save a property owner money on any type of remodel job.

### 1. Save Money on Remodeling with Demolition

Demolition is a cost factor that homeowners can save money on by doing it themselves.

Although it may not be the easiest task to complete for the average person, demolishing an area does not require any advanced skills. If a homeowner really wants to save money, they can do this part themselves instead of paying a third party to complete.

### 2. Save Money on Remodeling with Materials

Materials are a cost factor that can be adjusted to save a property owner money.

There are a variety materials that can be used for similar types of jobs. Some materials are more expensive than others. Depending on budget, property owners can adjust the materials they decide to use based on whichever ones are priced better.

### 3. Save Money on Remodeling With Labor

Labor can be an adjustable cost factor of remodeling a home, although not in all cases.

Some companies can charge more than others for the same type of job. If you are really aiming to save money, get a free estimate from a few different companies in order to get the best price possible.

## You Can Save Money on Remodeling Your Home by Making Adjustments to the 3 Factors Above

Property owners can definitely save themselves money by making adjustments towards the three factors stated above.

As a result of making adjustments to demolition, materials, and labor, you will be astonished. The price differences of your original quotes compared to quotes after making these adjustments will be phenomenal.

Are you looking for some of the best home remodeling Los Angeles has to offer? No need to search around any longer! At All American Builders, we offer top quality services for affordable prices. If you are located in or around our area, get in touch to go over to the details of your project!

Experts near you can provide you with additional detailed information about saving money on a specific project that you have. As a result, you will be given a better idea of expenses.

# What is the Kitchen Work Triangle?

## Kitchen Work Triangle

What is the kitchen work triangle?

Kitchen work triangles are an important aspects that determine the layouts of new kitchens. This is done in order to make the most efficient use of the available space in the room.

## How Do Kitchen Work Triangles Help?

Further details about the benefits of kitchen work triangles.

The main used areas of a kitchen are the refrigerator, sink, and stove. As a result, a kitchen’s “work triangle” is an area that is formed by the space between the kitchen sink, refrigerator and stove.

New kitchens and kitchen remodel layouts are designed according to these main three areas in order to improve the usage of the available amount of space for the users. Therefore, if designed properly, a triangle of space between these three areas create a space that is beneficial to the users of the kitchen in terms of completing tasks and having space to move around.

## Who Uses Kitchen Work Triangles?

A kitchen work triangle is used by construction companies when considering layouts for remodeling or building new kitchens, in order to obtain maximum efficiency from the available area.

The idea is that these kitchen items need to be placed conveniently relative to each other and have counter space next to them for necessary food preparation. When they are placed separately forming a triangle, it allows for a good traffic pattern and adequate work areas around each of these vital kitchen components.

In basic terms, this allows users of the kitchen to have an efficient time completing tasks in the kitchen, such as cooking, using the refrigerator, washing the dishes, etc.

# Can Garage Conversion be Profitable?

Yes, garage conversion can be profitable for property owners. This is especially true if the main purpose of converting the garage is to make profit in the first place.

Although remodeling a garage into an Accessory Dwelling Unit (ADU) might seem expensive at first, there are various ways that it can truly be a profitable investment. Are you wondering how converting a garage can be profitable?

There are various ways that a conversion can be profitable.

## How Can Garage Conversion be Profitable?

Some ways that garage conversions can be profitable are listed below.

### Financing the ADU and Renting it Out for a Higher Monthly Price

One main way a garage conversion can be profitable is if it is financed rented out for a monthly rent price that is higher than financing cost.

In this case, if the property owner finances the payment and pays less monthly for the monthly financing price compared to the price of rent received from a renter, the difference in money would be profit.

For example, if a property owner finances the job for \$450 a month, and rents the unit out for \$1000 a month, the property owner will make the difference in profit every month, which would be \$550 profit per month in this case. After the financing is paid off, the monthly payment of \$1000 in rent can be counted as full profit. This is one main way how profit is made with garage conversion in Los Angeles, CA and highly populated cities.

### Paying for the ADU in Cash and Renting it Out for Monthly Income

Another case that a conversion could be profitable during a situation where it’s to be rented out is if the project is paid off in full up front.

In this case, a certain amount of months of renting out the unit would pay off the cost of the project. Then the payments of rent for the months thereafter can be considered profit. Therefore, if a homeowner spends \$24,000 on a conversion, and rents the unit out at a price of \$1000 a month for two years, the \$24,000 cost will be covered in two years and then the income from months of rent thereafter can be considered as profit.

### Increasing a Home’s Selling Price by More Than the Cost of Conversion

Another simple example of how a garage conversion can be profitable is during a situation where the house is to be sold.

If the is if a property owner spends less on the job compared to how much they increase the selling price of the house, the additional difference would remain as profit.

For example, let’s consider a situation if a homeowner were to pay a construction company \$20,000 to convert their garage. If the homeowner increases the selling price of the home by more than the cost of the conversion, the additional money would be profit. If they spend \$20,000 and sell their home for \$60,000 more than the original price they would have sold it for if the conversion hadn’t taken place, the homeowner would make \$40,000 profit as a result.