2 Story ADU: Elevating Efficiency

A 2 story ADU is a relatively new concept that offers an innovative approach to maximizing living spaces. These double-height floor plans allow homeowners to preserve significant outdoor areas at the same time as accommodating large square footage for the occupants. 

With the growing popularity of 2 story ADUs, we at RenoFi are dedicated to guiding you at every stage of the ADU planning process. Our provided resources and expertise assist you in making well-informed decisions and building a practical and efficient living solution for visitors and family members. 

We know that ADUs can be expensive, which is why we offer financing options that are based on the after renovation value of the property. This way, you have access to the financing you need to build your dream ADU.

This guide delves into the details of 2 story ADUs, their benefits, types, and factors to consider that help you decide if these dwelling units align with your housing visions. Read on to learn more about the latest style of ADUs and how they can be improved to elevate the efficiency of your residential property.

Can an ADU Be Two Stories?

Yes, building a 2 story ADU has become the new norm across many municipalities, including cities such as San Diego, Oceanside, and California. Each city has its specific height limits and restrictions regarding these ADUs but as a general rule, a two-story ADU can only be built if the main property has two stories itself. 

Additionally, it is important to note that the height of the ADU should not exceed the highest point of the main property and must adhere to other state-defined rules. These independent units, attached or detached from the main residence, are used to maximize lots measuring up to 120 square feet. They feature all the essentials you would expect from a one-story ADU, including a bathroom, kitchen, living room, and one or more bedrooms with an additional storage area near the staircase. 

What Are the Benefits of a 2 Story ADU?

ADUs, with their flexible nature and easy-to-build design, make a great addition to any property. It is important that every single and double story ADU is built to last and strikes the perfect balance between functionality and affordability. Here are some of the most prominent benefits that come with adding a 2 story ADU to your main house:

• Increased Living Space: Two-story ADUs are an efficient way to increase the square footage without taking too much from the existing lot. These granny homes make use of a vertical design to facilitate extra rooms and storage areas. A two-story ADU is ideal for areas that require the owner to leave a certain portion of greenery on the lot while optimizing the smaller footprint to the full extent.
• Potential Rental Income: Building a 2 story ADU is a smart and easy way to make extra money. The property could be rented out on a long-term basis or used for short-term rentals like Airbnb. The added living space helps accommodate various tenants and accounts for comparatively higher rental prices than that of a single-story ADU.
• Enhanced Privacy: The in-law suites can also be used to house elderly parents, adult children, or visiting family members. ADUs are a great way to ensure that the privacy of the occupants is kept intact while still being close enough to the main family in case of emergencies. The vertical design of a 2 story ADU usually features common areas on the ground floor and one or more bedrooms on the first floor, providing improved privacy within the unit itself.
• Increased Property Value: An elegantly designed 2-story ADU that aligns with the architecture of the existing residence greatly boosts the overall curb appeal of the property. Renofi caters to visions based on either a modern ADU plan or eco-friendly aspects. We ensure that the new space complements well with the main residence and offers an excellent return on investment during the selling process.
• Better Workplace Productivity: Another possible use of a 2-story ADU is to function as a home office and boost productivity hours. The lower level operates as a reception area or storage space for supplies; meanwhile, the enclosed and private upper space improves concentration and productivity. The separate entry also helps keep your personal space protected from clients and customers and maintain a professional demeanor.

What Are the Types of 2 Story ADUs?

To make the most out of the benefits of a two-storey ADU guest house, it is significant to learn about the different types of layouts available. The three most popular types of 2-storey ADUs include:

• Traditional Two-Story ADUs: The traditional two-story ADU is designed to mirror the classic layout of any two-story home. Both levels in this granny flat are dedicated to a single family and connected by an internal staircase. The shared areas, such as the kitchen and living room, are allocated on the ground floor, and the private rooms are on the upper level. This style of ADU is perfect for families looking for a spacious, standalone home while still being connected to the main residence.
• Stacked ADUs: In contrast to the traditional 2-story ADU, stacked ADUs are built to accommodate two families at a single time. This modular approach facilitates a single family on each level and uses an external staircase to ensure privacy between both floors. Stacked ADUs are well-suited to homeowners looking to generate maximum rental income or shelter multiple families without breaching their privacy.
• ADUs Over Garage: Inspired by the historic carriage houses, ADUs built on top of garages are another functional type of 2 story dwelling units. As the name suggests, the ground floor consists of a garage and is connected either by an internal or external staircase to the upper level. The upper floor offers a practical and independent living space with one or two bedrooms and other basic amenities. This carriage house style ADU is sought after by rentals looking for adequate parking space in their homes or by property owners occasionally looking for a private retreat.

Factors to Consider When Building a 2 Story ADU

A 2 story granny flat is an incredible addition to any homeowner’s property. However, to make the most out of the benefits of these double story accessory dwelling units, it is significant to keep a few pointers in mind. These cover factors like:

Construction Cost

Depending on the complexity of the design, the construction cost of a 2 story ADU varies greatly in price. The vertical style of ADU requires the use of extra materials, labor, and structural components that are considerably expensive. 

The cost of running utilities on the second level, building a staircase, installing air handling units, and fire blocking between each floor also accounts for a higher construction cost as compared to that of a single-story ADU. 

How RenoFi Can Help

ADUs not only increase your home’s value after renovation but can also generate rental income. However, ADUs are costly. If you don’t have enough equity in your current home, funding ADU construction with a home equity loan is impossible.

For example, let’s say your current home value is $500,000, and your outstanding mortgage balance is $400,000. You are planning on adding an ADU and expect the value of your home to increase to $640,000. Your current loan-to-value ratio (LTV) is already at 80%, which means that most home equity loans are out of reach because that’s the maximum LTV they allow. So, your borrowing power using your current equity is $0.

RenoFi, on the other hand, would allow you to go as high as 150% LTV of your current value or 90% of your after renovation value, whichever is lower. So, in this example, while using a standard home equity loan results in your borrowing power being $0, a RenoFi loan allows you to borrow up to $176,000 by using the after renovation value of your home!