[quote=EconProf]The main question is whether you can get a permit for it. Lots of hurdles involved, but if you can, your cost will be reflected in the new value of the property. If not, then you are taking big risks and could be adding zero value, in some cases even negative value.
The plumbing will likely be your biggest expense, but also your biggest contributor to an increase in value and usefulness.
If it is the typical 10′ x 20′ single garage size, you can just squeeze a br and small ba in.[/quote]
This.
As many know – we built a detached granny flat for my in-laws. And it was a nightmare to get permits, and we had less than wonderful contractor experiences.
Assuming you’re in San Diego county – different municipalities have different rules. Will this be a separate address or just an additional space to your primary home? City of San Diego has started easing up on the requirements for granny flats. Wish they’d done this before we went through the process.
As far as hiring a contractor. Do your due diligence.
* Check them out on the cslb.ca.gov site – look for complaints, license status (probation, cancelled or suspended are BAD). Look at bonding history. Changes in bond history not on an anniversary date could suggest a bond was paid out (and cancelled) so they had to get a new bond company.
* Check out whether they are being sued, or suing. sdcourt.ca.gov. Look at their company name as well as their personal name.
* Check them out to see if they’re lien happy. http://arcc.co.san-diego.ca.us/services/grantorgrantee/search.aspx – again do this on their personal name and the company name. If suppliers have liens against them this is a red flag. If they’ve issued a lot of mechanics liens – again a red flag.
* If they’re incorporated or an LLC, check their corporate status. This is very important if things fall apart. If their corporation or LLC is suspended when the contract is written – then the contract is invalid. (Assuming it’s written in the corporate name.) http://kepler.sos.ca.gov/
This doesn’t protect you entirely – but it will catch the worst of the worst.
FWIW – despite our bad experience… We found most tradespeople to be great. But GC’s seem to add to the cost without necessarily adding value. Consider going owner builder (hiring the subs yourself).
