Thinking about buying a home, but not sure how to afford it? Welcome to the Down Payment Diaries, where real people spill about how they saved and splurged on their path to homeownership. If you’d like to submit your own Down Payment Diary, please fill out the form here.
Today, two conservation biologists share how they built an accessory dwelling unit to house a parent, allowing her to age in place and for them all to make better use of their land and resources, all while increasing the value of their California home.
The basics
Age: 48
Pronouns: She/her
Household setup: Married
Occupation: Conservation biologist
What was your home experience when you were growing up?
My parents owned a home, but they divorced when I was 7, and my mom and siblings moved from that place. Growing up, home ownership was normalized for me, but it wasn’t an expectation. I wasn’t locked into the idea of owning.
What has your home ownership experience been like so far?
Looking back, it’d be easy to think that my husband and I made a series of very strategic decisions, but a lot of it was just luck and timing. Even though we both work for nonprofits, we were able to cobble together a down payment and buy a foreclosed home in 2008. We lived there for six years, doing what we call a “slow flip.”
What happened next?
When we had kids, we bought a starter home in the suburbs of San Diego, California. We owned that for just two years, selling for a profit of $150,000. With that money in hand, we were ready to buy the house we live in now.
What was the house like?
We bought the worst house on the block. It was a mess, and it had structural issues, but we were interested just the same. The house had been sitting on the market for two years, and the sellers had reduced the price by $100,000. Plus, my husband is great at remodeling and was ready for a project.
Where did the idea for an ADU come from?
From the day we moved into this house, we had the idea that we wanted to expand. Our home is already two stories, and our city ordinance doesn’t allow three, so we knew we would have to build out, which works for us because our lot is so big.
What was your mom’s housing situation?
She retired early and unexpectedly. She decided to sell, but since she bought and sold at the wrong time, she only broke even on the property. I talked to my sister to see if, together, we could buy her a townhome in a nearby 55+ community. We talked about this idea for four years, but just couldn’t make the numbers work. Instead, my mom decided to rent.
How much did her rental cost?
The monthly rent and utilities cost $3,000 a month. She doesn’t travel a lot or have a lot of expenses, so she could afford it, but it still seemed like a lot of money to be spending on rent.
What made you decide to move forward with the ADU?
My husband and I had approached our financial adviser several times about renovating and expanding our house, but the numbers didn’t work. Finally, things lined up when my husband and I, who both have excellent credit scores, learned we could do a cash-out refinance without changing the terms of our loan. We still have a 30-year fixed loan, which is what we wanted.
Did your mom have any non-negotiables?
My mom wanted a full kitchen and her own washer and dryer. She also wanted space to do activities with her grandkids.
Were there any restrictions?
During the pandemic, the city of Poway loosened restrictions and made it easier to build ADUs. Still, they require ADUs to match the main house. To meet the requirements, we needed to redo our roof and chose terracotta tiles, which is what the ADU has. In the end, it looks like our house had a baby.
What did the neighbors think of your plans to build an ADU?
Before we committed, we talked to all the adjacent homeowners. We shared our plan and followed up with an email. We welcomed any concerns. Everyone was on board. In the end, our project inspired several neighbors to build their own ADUs. Snap ADU is popping up all over the neighborhood now, which is great to see. ADUs help add housing, and they’re cost- and resource-effective, which we love. They make so much sense in this neighborhood because we have big lots.
What was the build process like?
We ended up working with Snap ADU, thanks to a recommendation from a co-worker, who was finishing an ADU for her mother. We liked their set floor plans and met with them to talk numbers.
How much did they quote you?
They said they could do it for $250,000 all in, including adding a foundation for the ADU at a cost of $20,000. That number sounded reasonable. We knew that the average cost to build an ADU in California is $150,000; for a one-bedroom ADU, that cost can easily rise to $300,000 depending on size and finishes.
How long did the build take?
It took less than a year. We didn’t make significant changes to the floor plan—just changed the placement of a couple doors—so the permitting process was relatively fast. We also made every design decision within 24 hours to avoid holding anything up. We were already paying the higher mortgage, and we didn’t want to pay that any longer than we had to without help.
How much did your mortgage increase?
Before the ADU, we were paying $4,000. Once we started construction, it increased to $5,100.
How did the ADU affect the price of your home?
This house has an interesting appraisal history. When we bought the house, we were under contract for $749,000, but the house only appraised for $767,000. Now, the house is valued at $1,500,000.
What’s the long-term plan for the ADU?
We built the ADU for my mom, and she helps contribute every month toward the home mortgage and groceries. If she isn’t in the ADU in the future for one reason or another, we like that it’s detached and could easily be rented. It also has its own electric meter to make it easier should we ever have a renter in the future. That future renter would allow for extra income to help us cover our mortgage and maintenance.
What do you love most about your multi-generational living setup?
My mom, who is 78, has the built-in company of me and my family, and we have a built-in babysitter for our girls. It’s nice for them to come home from school and know that she’s there if they need anything. My mom also really likes how safe she feels here. This way she can age in place, and if there’s ever an emergency, we are right here.
The realtor.com® editorial team highlights a curated selection of product recommendations for your consideration; clicking a link to the retailer that sells the product may earn us a commission.