Income-Generating ADU in Linda Vista
Coolidge Street, San Diego, CA 92111
Homeowner Story: Generate rental income
Video Tour
Special Feature“To put it simply, the cost to build an ADU is about half of what the value of the unit will be worth upon completion. To use round numbers, you essentially build for 100 and it’s worth 200 at the end. Building that amazing equity, and eventually cashing out your initial investment with a cash out refi to do it again when the time is right. After listing for rent at the price, this unit rented within one day. There are very few nice detached rentals in San Diego County. The rental market will always be strong in San Diego County and there will always be a housing shortage because of limited space and population growth. San Diego will never not be the most beautiful city in the country.” – Sherry Chen, San Diego Realtor
Built by an investor-owner on a lot with a duplex, this ADU was designed to be an efficient, income-generating unit with two bedrooms. Read more about building an ADU as an investment and renting out your ADU.
Floor Plan:
2BR/1BA 30×21 Long
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.
