June 17, 2025
Be Your Own Developer: How an Interwoven Home gives control back to homeowners.
“All-In” ADU Cost Exposed: Real Prefab Prices in California
How One Bay Area Homeowner Used SB-9 and Modular Construction to Unlock Passive Income
- ADU Income, ADU Law, Modular Home Construction
California’s SB-9 (the HOME Act) has opened a rare window for property owners to rethink what’s possible on their land. From lot splits to increased density, the law offers a creative—and profitable—way to build in urban areas.
But turning a great idea into a reality comes down to execution.
Take one of our current Bay Area clients, for example. He was torn between traditional construction and modular homes. He’d heard the promise of SB-9: split your lot, add units, and start generating rental income.
But like many owners, he was overwhelmed by the permitting process and worried about timelines.
Ultimately, he chose to work with LiveLarge for two reasons:
So whether you’re an investor, homeowner, or aspiring developer, here’s what you need to know to do what he’s doing—and unlock the potential of SB-9 with modular construction.
Step 1: Build an ADU
Before You Split the Lot
Yes, the order matters.
Under SB-9, you’re allowed to place one ADU per parcel. So if you build the ADU before splitting the lot, you’re essentially doubling your future development potential—adding one now, and another after the split.
This approach:
- Makes the lot more valuable right away
- Gives you rental income while working through permits
- Lets you double-dip on the ADU rules legally
Step 2: Know the Owner-Occupancy Rule
SB-9 requires you to live in one of the units for at least 3 years if you’re doing a lot split. It’s a smart rule designed to limit speculative flipping, but it’s something to plan for in your financial model.
If you’re trying to rent or sell, factor that into your timeline.
Step 3: Consider a Modular Timeline Over Traditional Construction
Traditional builds can take 12–18 months or more—especially with permitting delays.
Modular homes, on the other hand, can be delivered in a fraction of the time. That’s exactly why our Bay Area client chose LiveLarge. He didn’t want to miss the chance to:
- Split his lot
- Get the unit permitted and installed
- And start renting out the second parcel ASAP
Modular let him move fast—without sacrificing quality.
Step 4: Use the Extra Unit to Pay Off the Mortgage
One of the biggest SB-9 opportunities is turning a single-family lot into multiple income-generating units.
With two primary homes and two ADUs (in some cases), you could:
- Live in one
- Rent out the rest
- Or sell one parcel entirely
Even just one new unit can offset a mortgage or fund your next project.
Step 5: Check Local Requirements (Then Call Us)
Each city has its own interpretation of SB-9—what works in Berkeley might not fly in Los Angeles.
But this is where most homeowners get stuck. Navigating zoning, planning, and permit requirements is no joke.
At LiveLarge, we’ve done this before.
We know the process, the paperwork, and the strategy behind making your SB-9 project pencil out. Just like we’re doing now in the Bay Area.
Final Thought: SB-9 + Modular = Your Fastest Path to a Smarter Property
If you’re thinking about splitting your lot or adding density, now is the time to act. SB-9 offers a once-in-a-generation opportunity—and modular homes are the smartest way to take advantage of it.
Want to see if your property qualifies? Or just want to chat about how a project might work?
Or get in touch and let’s walk through it together.
Discover More
June 11, 2025
Just Delivered: Our Flagship L-795 Prefab ADU in Santa Cruz
June 2, 2025
A Backyard That Pays: Sunnyvale Homeowner Secures $3,700/Month in Rent