CALIFORNIA HAS NEARLY EIGHT MILLION SINGLE FAMILY HOMES IF ONLY 10 PERCENT OF HOMEOWNERS
BUILT AN ACCESSORY DWELLING
UNIT OR ETU THERE WOULD BE
EIGHT HUNDRED THOUSAND UNITS
OF HOUSING CREATED WITHOUT ANY
COST OR BURDEN ON THE STATE.
SOUNDS GREAT, RIGHT? BUT WHERE
DO YOU START OR MAYBE EVEN
YOU'RE WONDERING IF YOU CAN
AFFORD ONE OF THESE. JOINING US
THIS MORNING FOR SOME ANSWERS
AND SOME ADVICE, CAITLIN
BIGELOW, THE CEO AND CO-FOUNDER
OF MAXWELL. IT'S A STARTUP THAT
CONNECTS CALIFORNIA HOMEOWNERS
WITH THE TOOLS AND SOME OF THE
RESOURCES THEY NEED TO NAVIGATE
THIS PROCESS. THANKS SO MUCH
FOR COMING ON. ABSOLUTELY.
THANKS FOR HAVING SO YOU'RE
COMING TO US LIVE I UNDERSTAND
FROM YOUR MOTHER'S SO-CALLED
GRANNY FLAT AND LA MESA THERE.
YEAH. SO THIS USED TO BE A
GARAGE AND YOU CAN SEE RIGHT
NOW I'M IN KIND OF THE DINING
ROOM KITCHEN AREA AND IT IS NO
LONGER A GARAGE. SO THIS IS IT
.IT'S A LITTLE ONE BEDROOM AND
IT HAS A FULL KITCHEN AND YOU
KNOW SHE RENTS THIS OUT FOR
INCOME EVERY MONTH. THAT'S
INCREDIBLE. SO KIND OF WALK US
THROUGH THE PROCESS OF HER
PLACE THERE. WHAT DOES IT TAKE
TO GET SOMETHING LIKE THAT? HOW
MUCH IS SOMETHING LIKE THAT
COST? WHAT'S THE SQUARE FOOTAGE
?ONE HUNDRED PERCENT. SO THIS
LITTLE SQUARE FOOTAGE ON THIS
IS ABOUT SIX HUNDRED SQUARE
FEET. A STANDARD GARAGE IS
ABOUT FOUR HUNDRED SQUARE FEET
WHICH BELIEVE IT OR NOT YOU CAN
MAKE INTO A ONE BEDROOM OR YOU
COULD DO A STUDIO. AND SO I
THINK THE BIG THING TO START IS
REALLY KIND OF UNDERSTANDING
THE REGULATIONS AND THE GOOD
NEWS THERE IS THAT THE STATE
HAS MADE IT SO MUCH EASIER THAN
IT USED TO BE. THERE'S BEEN
SOME REALLY BIG LEGISLATIVE
CHANGES AND THEN ON TOP OF THAT
SAN DIEGO, SAN DIEGO COUNTY
HAVE REALLY TAKEN BIG STEPS
FORWARD AND MAKING THE
ORDINANCE A LOT EASIER AND
EASIER TO NAVIGATE FOR PEOPLE
TO THAT'S THAT'S REALLY BEEN A
HUGE BENEFIT. YEAH, I THINK THE
NAVIGATION PROCESS IS IT SCARES
PEOPLE AND THAT'S KIND OF WHAT
MAKEABLE HELPS OUT WITH. RIGHT.
HOW DID YOU GUYS GET STARTED?
IS THAT THE REASON THAT YOU
GUYS DECIDED TO LAUNCH AND HOW
ARE YOU HELPING FOLKS? YEAH SO
FUNNY STORY. I ACTUALLY GREW UP
WITH A TINY GRANNY FLAT ON MY
PARENTS' PROPERTY. BOTH OF THEM
WERE JOURNALISTS AND WHEN WE
WERE A YOUNG FAMILY THEY RENTED
THAT OUT TO A STUDENT AT CSU
AND THAT WAS THE DIFFERENCE
THAT PAID THE MORTGAGE FOR THEM
.SO WHEN I SAW ALL THESE BIG
BILLS PASSED A FEW YEARS AGO I
THOUGHT WOW, THIS COULD BE OUR
OPPORTUNITY TO HELP MORE
FAMILIES. MY FAMILY KIND
OF ACHIEVED THIS EXTRA INCOME
OR ACHIEVE THIS FINANCIAL
STABILITY AND I STARTED DOING
RESEARCH ONLINE AND I JUST
REALIZED THERE WEREN'T A LOT
OF EDUCATIONAL TOOLS FOR
PEOPLE. THIS PROCESS IS STILL
COMPLICATED. IT'S EXPENSIVE AND
I WANTED TO BE ABLE TO HELP
MORE FAMILIES LIKE MINE. AND SO
THAT'S ACTUALLY HOW MEXICO GOT
STARTED. OH, THAT'S VERY
INTERESTING. SO WHAT IS THE
PROCESS LIKE? LET'S SAY SOMEONE
REACHES OUT TO YOU OR THEY JUST
HAVE DECIDED THEY WANT TO DO
THE ADS YOU GO THAT ROUTE. WHAT
IS THE WHAT IS THE TIME FRAME
LOOK LIKE TO ALL THE PERMITTING
AND THEN ACTUALLY GETTING THE
FACILITY BUILDING IT AND THEN
BEING DONE AND READY TO MOVE
IN? WHAT DOES THAT TIMEFRAME
LOOK LIKE? SURE. IT'S OBVIOUSLY
DEPENDS A LITTLE BIT ON THE
SIZE OF YOUR UNIT IF YOU'RE
BUILDING A TWELVE HUNDRED
SQUARE FOOT THREE BEDROOM WHICH
WE ABSOLUTELY HAVE CLIENTS
DOING THAT VERSUS IF YOU'RE
DOING A GARAGE CONVERSION THE
CONSTRUCTION TIME ON THOSE IS A
BIT DIFFERENT BUT GENERALLY YOU
CAN FACTOR IN EIGHT MONTHS ON
THE SMALLER PROJECTS ALL THE
WAY UP TO MAYBE EVEN A YEAR ON
THE BIGGER PROJECTS BUT THAT'S
GOING TO INCLUDE EVERYTHING.
RIGHT? SO THAT'S KIND OF REALLY
LIKE LOOKING AT WHAT IT IS YOU
WANT TO BUILD GOING THROUGH THE
DESIGN PHASE WITH YOUR DESIGN
OR YOUR ARCHITECT. YOU KNOW THE
PERMIT PROCESS TAKES ABOUT TWO
MONTHS AND THEN YOU GET TO MOVE
INTO CONSTRUCTION. WHAT ARE WE
LOOKING AT ON THE LOW FOR ONE
OF THESE? AND THEN OBVIOUSLY
YOU CAN GO PROBABLY AS HIGH AS
YOU WANT. THE HIGHER END
DEPENDS ON HOW YOU KIND OF WHAT
YOU PUT IN THERE AND
EVERYTHING. BUT WHAT'S THE WHAT
ARE THE TWO ENDS THERE? SO
YOU'VE HIT ON A QUESTION THAT
EVERYONE WANTS TO KNOW WHICH IS
WHAT IS THIS COST AND EVERYONE
WANTS TO KNOW WHAT IS THE COST
PER SQUARE FOOT ON THESE AND
THAT'S A CHALLENGING NUMBER TO
GIVE BECAUSE THERE ARE SUCH
VARIABLES BETWEEN FOR EXAMPLE
IN THIS UNIT THAT I'M IN RIGHT
NOW, YOU KNOW, MY MOM PUT IN
SOME REALLY MORE HIGH END
FEATURES HERE SO SHE PUT IT IN
THIS LIKE BOBRICK WALL BEHIND
IT AND THINGS LIKE THAT. SHE
WANTED LIKE CUSTOM BUILT INS
AND THINGS. SO A LOT OF THE
COST IS GOING TO DEPEND ON THE
LEVEL OF FINISH THAT YOU'RE
CHOOSING FOR YOUR UNIT WHETHER
THAT UNIT IS A STANDALONE UNIT
WHICH IS GOING TO BE MORE
EXPENSIVE GENERALLY IF YOU'RE
ON A TIGHTER BUDGET, A GARAGE
CONVERSION IS GOING TO BE THE
WAY TO KIND MAXIMIZE YOUR
BUDGET THE MOST AND AND MAKING
SURE THAT YOU'RE REALLY KEEPING
THAT ORIGINAL FOOTPRINT YOU'RE
NOT KIND OF CHANGING AND OR
OPENING UP WALLS WITHIN THE
GARAGE GARAGE CONVERSIONS IN
SAN DIEGO START AT ABOUT NINETY
THOUSAND DOLLARS AND KIND OF GO
UP FROM THERE WHICH CAN SOUND
LIKE A LOT TO PEOPLE AND IT IS
A LOT OF MONEY BUT THE WAY I
LIKE TO ENCOURAGE PEOPLE TO
THINK ABOUT IT IS LET'S SAY YOU
TOOK OUT A LOAN FOR THAT ENTIRE
NINETY THOUSAND DOLLARS YOU
KNOW YOUR MONTHLY PAYMENT IS
PROBABLY GOING TO BE ABOUT FOUR
HUNDRED AND FIFTY DOLLARS WITH
INTEREST RATES WHERE THEY ARE
RIGHT NOW. AND I'M GOING TO BET
THAT IF YOU'RE LIVING IN SAN
DIEGO AND YOU'RE TRYING TO RENT
OUT A ONE BEDROOM, I GUARANTEE
YOU'RE GOING TO BE RENTING IT
FOR MORE IN FOUR HUNDRED AND
FIFTY DOLLARS A MONTH. I MEAN
IN SOME NEIGHBORHOODS ARE
SEEING RENTALS AT TWELVE
HUNDRED DOLLARS A MONTH FOR
THESE UNITS. SO EVEN THAT
UPFRONT INVESTMENT CAN BE A LOT
THAT CASH FLOW CAN REALLY BE
ATTRACTIVE FOR PEOPLE. SO DOING
DOING TRY TO DO THE MATH MAYBE
YOU'VE ALREADY DONE IT. HOW
LONG BEFORE SOMEONE CAN RECOUP
THEIR EXPENSES ON SOMETHING
LIKE THIS? YEAH SO AGAIN IT'S
GOING TO KIND OF DEPEND ON HOW
EXPENSIVE YOUR UNIT ENDS UP
BEING AND WHAT YOU CAN RENT IT
FOR. YOU KNOW WE'RE SEEING
PEOPLE RECOUP COSTS ANYWHERE
FROM FIVE TO EIGHT YEARS BUT
KEEP IN MIND THAT ONE YEAR CASH
FLOW POSITIVE OR NOT. SO YOU'RE
YOU'RE BRINGING IN MORE MONEY
EVERY MONTH AND YOU'RE SPENDING
ON THE UNIT AND TWO THAT
DOESN'T TAKE INTO ACCOUNT THE
VALUE OF YOUR PROPERTY. SO WHEN
YOU BUILD ONE OF THESE UNITS,
YOUR PROPERTY VALUE IS GOING TO
GO UP AS WELL. SO IF YOU WERE
TO RESELL THAT HOUSE YOU'RE
GOING TO BE ABLE TO RESELL IT
AT A MUCH HIGHER LEVEL THAN YOU
WERE BEFORE YOU PUT IN THE SO
OBVIOUSLY THIS IS A BIG PIECE
IN SOLVING AFFORDABLE HOUSING
CRISIS, RIGHT? ONE HUNDRED
PERCENT. I MEAN THAT'S THAT'S
REALLY THE MOTIVATOR AND WHY
ALL OF THIS REGULATIONS I MEAN
IF YOU THINK ABOUT KIND
OF TYPICALLY HOW SLOW
GOVERNMENT TENDS TO MOVE WE'VE
HAD SEVEN MASSIVE LEGISLATIVE
BILLS PASSED IN THE LAST FEW
YEARS AND SO THIS IS SOMETHING
THAT THE STATE IS REALLY
STANDING BEHIND AND REALLY
MOTIVATED TO HELP HOMEOWNERS
AND SINCE THAT LEGISLATION
CHANGE HAPPENED, THAT VERY
FIRST BILL WAS PASSED IN TWENTY
SEVENTEEN WE'VE ACTUALLY HAD
TWENTY THOUSAND EIGHT YEARS
BUILT. SO IT'S A REALLY
EXCITING THING TO SEE THAT
HOMEOWNERS ARE ACTUALLY REALLY
EXCITED ABOUT THIS. THEY'RE
MOTIVATED. THEY WANT TO DO IT
AND THAT'S WHY WE'RE WE'RE HERE
TO HELP THEM KIND OF NAVIGATE
THOSE INITIAL THOSE INITIAL
PHASES. CAITLIN, THANKS SO MUCH