Case Study: Architectural Development of a 1200 sqft Detached Accessory Dwelling Unit by Yifu Design Studio

Background

Yifu Design Studio was commissioned to design a detached Accessory Dwelling Unit (ADU), with the objective to create a private residence with potential for rental income. The maximum allowable floor area of 1,200 sqft and a height of no more than 16 feet. The project revolved around a unique piece of property where the permissible design could embrace an ADU with the desired 1,000 sqft while complying with the height restriction.

Notably, this lot is also eligible to apply for SB9, which opens doors for a two-unit development. The legislation would allow for the addition of a second dwelling unit with a height of up to 33 feet, potentially enabling a two-story construction. With the given specifications and options, the task was to create a flexible private space that could generate potential rental income.

Yifu Design Studio rose to the challenge. The studio initiated an in-depth design process that took into account the client’s desires, the site’s characteristics, potential future users, and the potential benefits under the SB9 legislation.

Design Process

The studio’s design process began with a client briefing and comprehensive site analysis, understanding the client’s vision and the specific characteristics of the property. With the client’s desires for a flexible, private space and the property’s orientation and sunlight in mind, the team moved to concept development.

Preliminary design ideas were produced, exploring different architectural styles, space usages, and sustainability factors. These ideas were refined through several iterations, employing axonometric views and section box views to better visualize the spatial and functional relationships within the proposed ADUs.

After presenting the design schemes to the client and incorporating their feedback, three distinct and refined design schemes emerged: Scheme A (garage conversion), Scheme B (two-level layout with upper-level master suite), and Scheme C (two-level layout with additional bedrooms).

Design Proposal & Key Architectural Features

Scheme A: Cost-Effective Garage Conversion

This design turned the existing garage into a practical one-bedroom ADU.

This design involved the cost-effective conversion of an existing garage into a one-bedroom ADU. The practicality and affordability of this design could appeal to property owners seeking a budget-friendly ADU solution. By transforming underutilized space, the ADU could offer additional income through rental opportunities or provide a private, separate space for family members.

Key architectural elements of this design included:

• Open Floor Plan: The space was designed to maximize functionality, with a fluid layout combining the kitchen and living area to create a sense of spaciousness and encourage interaction.
• Window Placement: Thoughtfully placed windows ensured optimal natural light, reducing the need for artificial lighting during the day.
• Outdoor Space Integration: A small private outdoor space was seamlessly integrated into the design, blending the indoors with the outdoors and providing a tranquil retreat.
• Material Use: Sustainable, locally sourced materials were used wherever possible to reduce the environmental impact and enhance the design’s overall eco-friendliness.

Scheme B: Two-Level Layout with Upper-Level Master Suite

This design proposed a two-story layout, with a master suite secluded on the top level.

This design presented a two-level layout with a master bedroom on the top level. The benefit of this design was the creation of a secluded, private space on the upper level, offering inhabitants a sense of separation from the main property. This design could increase the property’s desirability to potential renters seeking a balance of privacy and shared spaces.

The main architectural features of this design included:

• Ground Floor Design: An open plan kitchen and living area on the ground floor created a welcoming, communal space, promoting a sense of connection.
• Private Upper Level: A well-designed staircase led to the private upper level, housing a master suite complete with an ensuite bathroom, providing a private oasis within the ADU.
• Balcony Design: The large balcony, accessible from the master suite, was carefully designed to offer panoramic views of the surrounding area while maintaining privacy.
• Lighting and Storage: Innovative storage solutions were embedded into the design to optimize space. Large windows and strategically placed skylights ensured an abundance of natural light, enhancing the spacious feel of the unit.

Scheme C: Two-Level Layout with Additional Bedrooms

The third design followed Scheme B’s two-level configuration but added two additional bedrooms on the ground level.

The third design proposed a two-level configuration similar to Scheme B, but with two additional bedrooms on the bottom level. This design maximized the ADU’s rental potential, allowing for higher occupancy and, consequently, higher rental income. Despite the increased capacity, the exclusive master suite on the top level ensured privacy for all inhabitants.

This design’s key architectural elements included:

• Space Optimization: Smart architectural design allowed for increased occupancy without sacrificing comfort, with carefully designed shared and private spaces.
• Privacy Design: In addition to the private upper-level master suite, the design offered individual private gardens for each of the ground floor bedrooms, adding a unique touch and enhancing privacy.
• Sustainable Features: Emphasis was placed on sustainability, incorporating energy-efficient appliances, a heat recovery ventilation system, and solar panels to maximize the ADU’s environmental friendliness.

Projected Impact & Benefits

The choice between these designs would provide different advantages. All designs prioritize natural light, sustainable materials, functional use of space, and aesthetic consistency with the main property, factors which contribute to the property’s overall appeal and value. To illuminate this, an ROI Analysis was prepared for the project, assuming Scheme A, which encompasses a cost-effective one-bedroom garage conversion.

Property Value Increase

The construction of the ADU is projected to increase the property value instantly by $605,466.3, a notable boost given the net construction cost of $231,380.0 after accounting for grant programs.

ROI and Break-Even

The analysis projects a 1-year cash ROI ranging between $11,814.3 and $15,795.7, with an ROI break-even length of approximately 5.68 years. This suggests a strong investment potential, particularly given the long-term benefits.

Rental Income

In terms of rental income, depending on the selected scheme, the ADUs could attract varying demographics of tenants, from single professionals (Scheme A), couples or small families (Scheme B), to larger families or shared tenancies (Scheme C).

The ADU provides opportunities for substantial rental income, projected annually between $32,565.6 and $64,798.7, depending on the year. This recurring revenue significantly contributes to the ROI.

This analysis projects a substantial increase in property value, a strong return on investment (ROI), considerable rental income, and impressive future projections, all derived from implementing Scheme A. However, it’s noteworthy that these estimates represent just the starting point of potential earnings.

Schemes B and C, which feature additional living spaces, present opportunities for even higher returns. Scheme B, which offers a master bedroom on the top level, and Scheme C, featuring a master bedroom on the top level plus two additional bedrooms on the bottom level, provide the flexibility to accommodate more tenants and hence generate higher rental income.

Therefore, while the ROI Analysis for Scheme A already suggests a compelling investment opportunity, Schemes B and C would likely amplify these benefits further. They offer the potential for even greater property value increase, rental income, and overall financial returns, showcasing the substantial potential of well-planned, architecturally designed ADU projects.

Future Projections:

By 2043, the value increase from the new construction is projected to reach $1,046,245.7, an impressive appreciation over the initial property value. Monthly rents in 2043 are projected at $5,399.9, representing a significant increase from current estimates, indicating a continuous positive cash flow from the investment.

Conclusion

Given these projections, each of the design schemes offers a strong potential return. With careful management of construction costs and rental operations, this ADU can provide a lucrative and sustainable investment, enhancing property value, delivering substantial rental income, and contributing to long-term financial gains.

Through a comprehensive and creative design process, Yifu Design Studio provided three exceptional ADU designs that balance aesthetic appeal, functionality, sustainability, and potential property value increase. The studio proves that, with the right design approach, ADUs can serve as both a comfortable home and a valuable asset.

Discover the Potential of Your Property Today

Is your property sitting on untapped potential? Are you considering an ADU but unsure how it might work with your specific lot, layout, or constraints? Let Yifu Design Studio guide you through the process and eliminate the guesswork.

Schedule your free architectural consultation with us today and let’s explore together how we can:

• Maximize Your Space: Even within the strictest zoning regulations, we can devise an ADU plan that makes the most of your available space.
• Increase Property Value: Our expert team will show you how a well-designed ADU can boost your property’s market value.
• Generate Extra Income: An ADU could potentially turn your property into a lucrative rental unit, providing a steady stream of income.
• Navigate Regulations: With us, you won’t have to navigate the complex planning and zoning regulations alone. We’ll assist you in understanding the implications of laws like SB9 and how to utilize them to your advantage.
• Create Sustainable Design: If you’re keen on eco-friendly living, we can integrate sustainable design elements to make your ADU an environment-friendly haven.

Don’t let uncertainties hold you back. Your property holds possibilities you may not have imagined yet. Click below to schedule your free ADU consultation today. Yifu Design Studio will take on the challenge to unlock the full potential of your property.

GET A FREE ARCHITECT CONSULTATION