Many people wonder where to start when planning their ADU. You need to draw up floor plans, fill out paperwork for permits, secure financing, and make countless decisions. It can be overwhelming, so knowing where to start is crucial.
When Kol Peterson, author of the definitive guide to building an ADU, gets this question, his answer is clear: Figure out the cost of what you want to do, then think about financing. Bounce back and forth between these two factors until you have a project you love that you can afford.
Watch the video to hear it from the ADU expert himself.
4 First Steps to Building an ADU
- Estimate ADU Costs
- Secure Financing for the Project
- Research Zoning Requirements
- Consult with a Architect and/or Builder Experienced with ADUs
Estimating ADU Costs
Kol Peterson suggests starting with figuring out the ballpark ADU costs. It can be challenging to come up with a figure without all the details, but you need a starting point.
- Are you planning a detached ADU with custom construction or a prefab/modular installation?
- Are you converting part of your existing primary home into an ADU (such as a garage or basement)?
To estimate costs quickly, use these techniques:
- Example Quotes Sheet: Check out sample costs for typical projects from resources like BuildZig.
- ADU Cost Calculators: Utilize tools like the Napa/Sonoma ADU Cost Calculator.
- Average Actual ADU Costs of Finished Projects: Study the figures reported by other homeowners for their ADU projects.
These methods provide a ballpark estimate to move forward with your planning.
ADU Financing – How to Pay for Your ADU
There are numerous ways to finance the construction of your Accessory Dwelling Unit.
During the COVID-19 quarantine, mortgage rates hit all-time lows. Many homeowners found themselves in a favorable position for a cash-out refinance, which offers two benefits:
- Get Cash for Construction: This provides the necessary funds to finance the construction of the ADU.
- Lock in a Lower Mortgage Rate: This can result in long-term savings on your mortgage payments.
Right now, many Rhode Island homeowners might be in a perfect position to take advantage of this financing option.
Research Zoning Requirements
In Rhode Island, it’s crucial to understand the zoning requirements and regulations surrounding ADUs. You can do this by searching through our other blog posts for summaries of each zoning ordinance by town. Or you can do the research yourself by looking through your town laws. These regulations can vary significantly from one municipality to another. Generally, Rhode Island has become more ADU-friendly, with recent laws aimed at increasing housing options and affordability.
Consult with a Builder or Designer/Contractor Experienced with ADUs
Consulting with professionals who have experience in building ADUs can save you time, money, and headaches. They can help navigate the complexities of zoning laws, design a functional and aesthetically pleasing space, and ensure the project stays on budget.
Conclusion
Starting an ADU project involves several critical steps: estimating costs, securing financing, researching zoning requirements, and consulting with experienced professionals. By carefully planning and considering each of these aspects, you can create a valuable addition to your property that offers both financial and personal benefits.
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