How Much Does it Cost to Convert a Garage Into a Living Space?

Average Cost of Converting a Garage Into a Living Space

How much does it cost to convert a garage into a living space? The average cost of garage conversion usually adds up to $15,000 to $50,000. All conversions have different costs based on the details and scale of each project.

Some Cost Factors of Garage Conversions

Some cost factors include the size of the living space, amount of rooms, materials used, and more. In basic terms, the total amount of labor and material required in order to complete the accessory dwelling unit will determine its final cost.

Some conversion projects could cost much more or less than others depending on their complexities. Jobs with complex designs and expensive materials will surely have a much higher cost compared to jobs with simple designs and less expensive materials.

Property owners have plenty of flexibility when it comes down to the cost of garage conversions. Decisions can be made based on budget availability.

Another cost factor is location. Different cities and states will have different amount of costs involved based on supply and demand. Surprisingly, although many things in California are expensive, the cost of converting garage conversion in Angeles County is relatively low.

Professionals near you can provide you with a precise cost by going over the details of your project with you.

can remodeling your home be profitable img 1 by all american builders

Can Remodeling Your Home Be Profitable?

Are you wondering if remodeling your home can be profitable? Yes, there are various ways that homeowners can profit by remodeling a property.

How Can Remodeling Your Home Be Profitable?

Remodeling a home and/or property can be profitable during two main types of circumstances.

These two main circumstances include increasing home value for a sale, and increasing rent price for renters. As a matter of fact, these situations can be so profitable that many people do it as a business.

1. Selling Your Home for a Higher Price

Increasing a home’s value by remodeling and selling it for a higher price can be a very profitable thing for property owners.

The value of a home is strongly determined by the living conditions it can provide for the residents that will be staying there. As a result, remodeled homes can be sold for much higher prices as opposed to non remodeled ones in the same areas. A home’s value will increase proportionally to the extent of which the home has been remodeled.

Therefore, by investing in remodeling, property owners can receive much more money when selling their home.

1a. Example of Situation 1

Here is an example of situation #1 in order to provide a realistic point of view for you.

Let’s picture a scenario where a home is worth five hundred thousand dollars ($500,000) in its current condition. The homeowner invests one hundred thousand dollars ($100,000) on remodeling and upgrading the property. As a result, anything more than six hundred thousand dollars ($600,000) would be profit. Therefore, if the home is sold for eight hundred fifty thousand dollars ($850,000) a decent amount of profit would be made thanks to the remodels.

In this case, the amount of profit made by the property owner would add up to two hundred and fifty thousand dollars ($250,000) not including taxes and fees.

1b. Mathematics of Situation 1 Example

Original Home Value = $500,000 (This is how much you will receive if you sell the home without remodeling.)

Extra Cost of Remodeling = $100,000

Home Selling Value After Remodeling = $850,000

So New Selling Value of $850,000 – $100,000 Cost of Remodeling = $750,000 (This is how much you will receive if the home is sold after remodeling.)

The profit would be the difference of $750,000 and $500,000 which would add up to a total of $250,000 profit.

2. Renting Your Home Out for a Higher Price

Increasing a home’s value by remodeling and renting it out for a higher price can be very profitable.

The price of a home is strongly determined by the living conditions it can provide for the residents that will be staying there. As a result, remodeled homes can be rented out for much higher prices as opposed to non remodeled homes. Therefore, cost of rent for a home will increase proportionally to the extent of which the home has been remodeled.

Therefore, by investing in upgrading a home, property owners can receive larger amounts of long term income from the increased price of rent money they receive from their properties. The additional difference would be the profit that they make.

The profit that could be made in this situation would be based on the difference of the upgrade costs and the additional rent price.

2a. Example of Situation 2

Here is an example of situation #2 to provide a realistic point of view for you.

Let’s consider a situation where a property owner can currently rent their non-remodeled house out for two thousand dollars ($2,000) a month. The amount of profit that can be made is based on the difference of money they spend on the remodeling and the amount that they raise the monthly rent by.

If they invest one hundred thousand dollars ($100,000) on remodeling the home with 30 year financing, their monthly financing costs could add up to around four hundred dollars ($400) a month with interest. In this case, increasing the rent by anything more than the monthly financing cost would be profit. Let’s consider if the property gets rented out for two thousand seven hundred dollars ($2,700) as a result of the remode. In this case, the monthly profit made by the property owner would add up to three hundred dollars ($300) in the beginning.

This monthly profit will gradually increase as the cost of interest goes down over time.

2b. Mathematics of Situation 2 Example

Original Rent Price Before Remodel = $2,000 a Month

Cost of Remodeling = $100,000

Monthly Cost of Remodel With 30 Year Financing Based on Terms = Approx $400 a Month Including Interest

Home Rent Price After Remodeling = $2,700 a Month

Profit Made By Remodeling = $300 a Month ($2,700 New Monthly Rent – $2000 Original Rent – $400 Financing Cost)

These Are Just Some Basic Examples of How Remodeling Can Be Profitable!

The scenarios provided above are just some basic examples of how remodeling your home can be profitable.

There are many other ways of making profit with remodel. Another great example would be a garage conversion. Converting a garage into an accessory dwelling unit can be very profitable for the same reasons stated above.

Are you serious about making profit by upgrading your property? Experienced professionals near you can help you create a profitable situation for yourself. They can do this by providing you with detailed information and suggestions on what you can do to reduce costs and increase value.

Are you looking for some of the best home remodeling Los Angeles has to offer? If so, our team of master craftsmen can help you make profit by upgrading your house. No need to search on Google or Yelp anymore! Get the highest quality work for the most affordable prices around.

garage conversion ideas

Garage Conversion Ideas

Are you looking for garage conversion ideas to implement into your new accessory dwelling unit (ADU)?

There are a variety of ideas you can implement in order to improve a garage conversion project. We are here to provide you with free information that will help you know more about converting a garage into a living space.

Garage Conversion Ideas for Layouts, Space Efficiency, and Saving Money

In this article, we will go over different types of garage conversion ideas, including money saving ideas, space efficiency ideas, and styling ideas.

Layout Ideas for Garage Conversions:

There are various types of layout ideas you can choose from for you garage conversion depending on your desires of how the ADU will mainly be used.

1. Layout With an Entrance Near the Bathroom

This can be a good place to put the entrance if you would like visitors of the backyard or main home to have easy access to the bathroom.

By placing the entrance of an ADU near the bathroom, visitors of the home can conveniently use the restroom without having to walk through the entire unit. This can be a beneficial thing for people who plan on having plenty of parties in their backyard or main home.

2. Layout With an Entrance Near the Kitchen

Placing the entrance near the kitchen of an ADU can be a great idea if you plan on using the kitchen a lot.

As a result of placing an entrance here, there will be easy access into the kitchen, and easy access out from the kitchen, without having to do much walking through the rest of the unit.

3. Layout With an Entrance Near the Main Living Space

This can be the most efficient layout idea for units that are going to be rented out. It is also good if if there are to be many visitors coming in and spending time.

As a result of placing the entrance near the main living space, the majority of people in the main living area have easy access in and out without getting in the way of others. While at the same time, the visitors can conveniently have equal amounts of access to the kitchen and bathroom.

Space Efficiency Ideas for Garage Conversions With Pitch Roofs:

If you have a pitch roof, there are two different types of additional space you can get from the ceiling. You can either have extra storage space or extra open space.

If you do not currently have a pitch roof on your garage, it is possible to have one built, although additional costs will apply.

1. Regular Ceiling for Additional Storage Space

With this type a ceiling, you can have additional storage space for your ADU.

The ceiling will be flat above the room in this case. The higher unused parts of the room will be sacrificed in this case while creating additional storage space that will be blocked off from the rest of the room. You will sacrifice the higher unused parts of the room to create the Insulation of the ceiling will be placed within the newly built flat area.

2. Vaulted Ceiling for Additional Open Space

With an open voltage ceiling for a pitch roof, you can have a larger area of space within the room as a result of the higher ceiling.

Insulation used for these types of ceilings are special sheets that are placed on top of roofs.

Money Saving Ideas for Garage Conversions:

Here are a couple of ideas that can help you can save money on a conversion project.

1. Save Money on Plumbing by Placing the Kitchen and Bathroom as Close to the Main Home as Possible!

The locations of where the kitchen and bathroom are placed in an ADU affect the cost of the job.

This is mainly for plumbing reasons. The closer an ADU’s kitchen and bathroom and placed to the main home, the less expensive it would be to complete the plumbing. It is a good idea to build the kitchen and bathroom as close as possible in order to reduce plumbing costs.

2. Do Some of the Work Yourself (Caution!)

Be extremely careful if you attempt this. Doing some of the work yourself can help you save some money by reducing costs but it is only suitable for certain people with proper knowledge.

Demolishing is the main type of work that some homeowners can do by themselves in order to reduce costs. Anyone planning on demolishing should not do so without knowing the very specific parts that need to be demolished. Demolishing any more than you need to can actually end up costing you more money.

Always consult with experienced contractors near you to make sure you are doing the right thing before you attempt to do any of the work yourself. DO NOT ATTEMPT THIS IF YOU ARE NOT 100% SURE OF WHAT YOU ARE DOING.

Get More Garage Conversion Ideas From Professionals Near You

Professionals near you can provide you with more garage conversion ideas based on your specific desires of the ADU.

Are you searching for the best possible general contractor near you for California garage ADU conversion? All American Builders is known for providing some of the best garage conversion Los Angeles has to offer. We also have some of the most affordable prices around.

Find us on Google Maps or check us out on Yelp for more info! Check out our reviews and images of jobs we’ve previously completed!

How Garage Conversion Affects a Home's Value img

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? 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 all types of new room additions that can be used as extra living space!

Are you located in or around Los Angeles County, California? Don’t settle for anything but the highest quality work in your home. No need to search online any longer. All American Builders has over 13 years of experience in the industry. We are known for offering some of the best garage conversion Los Angeles has to offer.

Find us on Google Maps or Yelp 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?

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.