Two Story ADU Rental in SDSU College Area of San Diego
Campanile Way, San Diego, CA 92115
Homeowner Story: Generate rental income
Homeowner InterviewExplore the transformation of a College Area San Diego property into a lucrative real estate investment with the addition of a two-story ADU. Property owner Malka Nagle shares her journey of developing a rental unit that meets the growing demand for housing in the SDSU College Area. This project is a testament to the benefits of ADU investment properties and the efficiency of working with SnapADU.
Why build an ADU
Malka Nagle, a seasoned real estate investor with over 45 years of experience, decided to leverage her property in the College Area of San Diego by adding an Accessory Dwelling Unit (ADU). The primary house, which has been a successful rental for 15 years, sits on the property where Malka grew up. With the opening up of ADU laws in California in 2020, she saw an opportunity to maximize the rental potential of her family property.
The decision to build an ADU was influenced by Malka’s previous experience in property development. She needed a hands-off project management approach due to living out of the area. She chose SnapADU for ready-made ADU plans, a professional website, and the ability to handle narrow site constraints efficiently.
“The build was one of the most organized I’ve ever seen. Hardly a day went by without progress, and SnapADU had everything scheduled, down to when the inspectors would come. SnapADU’s project management was incredible. I don’t live in the area, and all I had to do was write the checks – they handled everything from start to finish.” – Malka Nagel, Homeowner in San Diego
ADU Design and Timeline
The selected plan was a two-story, four-bedroom, two-bath unit under 1,200 square feet. This design included amenities like a washer and dryer, which made the unit highly desirable for tenants. The construction process was meticulously organized, with SnapADU managing everything from the design phase, which took about two and a half months, to the permitting process, which was completed in six months. Read more about how long it takes to build an ADU.
The actual build-out of the ADU took approximately six and a half months, with minimal downtime. Despite a few rainy days and the Christmas holiday period, the project progressed smoothly. SnapADU’s systematic approach ensured that each phase of the ADU construction was executed with precision, even accommodating Malka’s request to add extra windows and an island for additional cabinet space.
“I initially considered modular, but I wanted something that looked custom and matched the existing home. SnapADU provided the perfect stick-built solution.” – Malka Nagel, Homeowner in San Diego
Investment and Returns
Malka highlights the financial viability of the ADU project, noting that the cost of building the unit was about 50% of the square foot value of ready-made homes in the area. This significant cost advantage promises a return on investment within six to seven years. The ADU was rented out even before its completion, underscoring the high demand and profitability of such projects in the San Diego real estate market. Read more about the ROI of ADUs.
The successful development of a two-story ADU in San Diego’s College Area not only enhanced the property’s rental income but also demonstrated the efficiency and professionalism of SnapADU’s project management. Malka’s experience as a real estate investor and licensed realtor underscores the strategic advantages of investing in ADUs, especially in high-demand areas like San Diego.
Read our Ultimate Guide to ADU Rentals.
Floor Plan:
Two Story 4BR/2BA 30×20 Long
With four bedrooms, this large two-story ADU of ~1200 sqft is a great option for landlords. A first floor bath and bedroom/office offer flexibility, while three bedrooms and bath upstairs complete the guest house.
Alternate Build Ready Option Pre-Approved in San Diego
An alternate 1200 sf build-ready floor plan pre-approved in San Diego features a similar layout with slight modifications to the floor plan and dimensions. The first floor bedroom has replaced with an office, and the plans includes a first floor patio and a second floor balcony that comes at an additional cost.
About Build Ready Floor Plans
Build ready floor plans are pre-designed layouts developed from real projects, ready to be used or modified into a semi-custom plan. Choosing a build ready plan saves homeowners time and money by utilizing designs we’ve already permitted and built. These plans also minimize risk, as their engineering and construction processes are already well-documented.
For homeowners seeking more flexibility, semi-custom options allow for modifications to standard designs without significant additional fees. Adjustments can include layout changes, such as flipping or rotating the plan, customizing windows and doors, or altering finish materials. With semi-custom plans, you get the perfect balance of personalization and efficiency.
Additionally, build ready plans allow us to more accurately forecast costs in early planning phases. Since we’ve built similar units, we understand the engineering and potential expenses involved, providing homeowners with greater confidence and clarity during the process.
Learn more about build-ready and semi-custom options.
Pre-Approved in San Diego
Government Code Section 65852.27(b)(2) requires cities to approve or deny an application within 30 days if the application uses a plan identical to one already approved in that jurisdiction during the current code cycle. This floor plan was previously permitted in San Diego, so if re-used in San Diego, there is another time saving benefit to using this build ready floor plan. Read more about the benefits of pre-approved plans.
Community:
The City of San Diego ADU Guide
With more than 70 ADU projects completed or in progress throughout the City of San Diego, we’ve seen firsthand how the city’s regulations create opportunities that are not available in many other jurisdictions.
One of the biggest differentiators is San Diego’s Affordable ADU Bonus Program, which allows qualifying properties to add multiple ADUs when some units are rented at affordable rates. This has made San Diego a leader in ADU development and has opened the door for homeowners and investors to create additional housing beyond what is typically allowed under state law.
In 2025, the city became the first jurisdiction in San Diego County to adopt AB1033, allowing qualifying ADUs to be sold separately from the primary residence. As of June 2026, only the County of San Diego and the City of San Diego have adopted AB1033.
San Diego also offers significant flexibility in the types of ADUs that can be built. The city allows two-story ADUs, ADUs with garages, ADUs with guest quarters, ADUs with rooftop decks, front yard ADUs, and stacked ADUs for multi-unit projects. We’ve worked on all of these project types throughout the city.
Another unique aspect of San Diego is its setback regulations. Many single-story ADUs can be built with 0-foot side and rear setbacks, creating opportunities on properties where space is limited. However, building too close to property lines can trigger additional fire-rating requirements and construction challenges, which is why thoughtful site planning remains critical even when the regulations appear flexible.
San Diego ADU Permitting
Most ADU permits in the City of San Diego are approved within approximately 3 to 5 months after submission, although timelines vary depending on project complexity and city workload.
Compared to many other jurisdictions in San Diego County, the City of San Diego has some of the highest ADU permit fees. Permit costs often range from approximately $26-$28 per square foot, though smaller ADUs under 500 square feet can benefit from reduced fees closer to $14 per square foot. We maintain a detailed breakdown of City of San Diego permit fees, including plan check fees, building permit fees, impact fees, and inspection fees, in our ADU permit fee guide.
Approximately 10% of our City of San Diego projects are located within the Coastal Zone. While coastal properties often raise concerns for homeowners, many ADUs qualify for exemptions from Coastal Development Permit requirements under the City’s updated Local Coastal Program. Learn more about building an ADU in the Coastal Zone.
Working with an experienced ADU builder helps identify potential permitting requirements early and creates a more predictable path through design and permitting.
