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REPORT · SM-2026-001 · CONFIDENTIAL
The Property Potential Report™

More than they
told you.

A full analysis of what's legally possible, what each scenario earns, and what your property is genuinely worth — before you commit to a single builder.

Property
Single-family residence, Santa Monica, CA
Zoning
SMR1* — Single-Unit Residential
Lot size
7,987 sf · 50' × 160'
Delivered
48 hours from order
Your PrefabIQ Score™
Exceptional opportunity
92 / 100
Executive Summary

A 7,987 sf lot capable of three legal units.

This property is a strong candidate for ADU and JADU development under California's current state laws. The lot dimensions, zoning, and absentee owner status combine to make this a particularly attractive opportunity for a homeowner looking to add rental income or an investor evaluating density potential.

The analysis below outlines three legal development scenarios, projects rental income on each, and quantifies the construction cost advantage available through PrefabIQ's factory supply chain versus a California site-built equivalent.

Subject Property

The data we worked from.

LocationSanta Monica, CA · West Side
Zoning codeSMR1* — Single-Unit Residential (asterisk indicates overlay)
Lot dimensions50 ft frontage × 160 ft depth
Lot area7,987 sf (0.183 acres)
Existing structure1,435 sf single-family residence (1 story)
Year built1952
Owner typeAbsentee (investor signal)
WaterPublic — connected
SewerNot on record — verify connection (flag below)
2025 assessed value$360,912 · land value $240,076
Applicable Zoning Standards

What SMR1 allows on your lot.

Santa Monica R1 zoning establishes the development envelope. The ADU portion is governed by both city ADU ordinance and California state law (whichever is more permissive).

StandardRequirement
Max height (primary structure)28 ft · 2 stories
Max height (detached ADU)16 ft typical · up to 25 ft for two-story
Max parcel coverage45% new construction
Front setback (primary)20 ft minimum
Side setbacks (primary)5 ft each side on 50ft lot (10% of width)
Rear setback (primary)~15 ft typical
ADU side/rear setbacks4 ft minimum (state law)
ADU parking requiredNone — within ½ mile of transit
Short-term rentalsNot permitted (30-day minimum lease)
Density Scenarios

Three paths. Three outcomes.

The following scenarios are arranged from most straightforward to most aggressive. All three are legally permissible under current California state law and Santa Monica's ADU ordinance.

Scenario A · Conservative
ADU only — fastest path, lowest risk

Keep the existing 1,435 sf primary residence intact. Add a single detached ADU of up to 1,200 sf in the rear yard with 4ft side/rear setbacks. Ministerial approval — no hearing required.

Buildable rear envelope: 160ft depth minus 20ft front and ~15ft rear setbacks = 125ft of usable lot depth. At 50ft width minus 8ft of side setbacks = 42ft buildable width. A 1,200 sf ADU fits comfortably in this envelope.

Scenario C · Maximum density
SB-9 lot split — potentially 4 units total

A 7,987 sf lot qualifies for SB-9 lot split analysis (lots must be at least 2,400 sf with each resulting lot at least 1,200 sf). A split would create two parcels of ~4,000 sf each, with each parcel capable of supporting its own primary residence + ADU.

Note: Santa Monica's SB-9 implementation rules and the SMR1* overlay require specific verification at the planning department. Recommended only if maximum density is the primary goal and the timeline allows for additional permit complexity.

Revenue Model

What each scenario earns.

Rental projections below reflect current Santa Monica West Side submarket conditions. Numbers represent the recommended Scenario B (3 units total).

Unit Size Est. monthly rent Annual income
Primary residence 1,435 sf $4,500 – $6,500 $54k – $78k
Detached ADU (new) 800 – 1,200 sf $2,800 – $4,200 $33.6k – $50.4k
JADU (within primary) up to 500 sf $1,800 – $2,500 $21.6k – $30k
TOTAL ANNUAL — All three units rented $9,100 – $13,200 /mo $109k – $158k
Rental estimates reflect submarket comparables at time of report. Actual rents vary by finish level, unit layout, and market conditions at lease signing.
PrefabIQ Construction Advantage

Why we exist.

The factory arbitrage
A 1,200 sf custom ADU costs roughly half through our supply chain.
A comparable 1,200 sf custom ADU built by a Santa Monica general contractor using conventional site-built methods typically lands in the $420,000–$550,000 range all-in.
The same unit built through PrefabIQ's factory supply chain — delivered 75–80% complete from a factory where labor costs a fraction of California rates, then site-completed by our CA GC partners — comes in at approximately $240,000–$320,000 all-in.
CA site-built
$420k–$550k
PrefabIQ supply chain
$240k–$320k
Spread (instant equity)
$130k–$230k
That spread is equity created at the moment the certificate of occupancy is issued — before a tenant moves in, before appraisal, before any market appreciation.
Important Property Flags

What needs verification.

!
Sewer connection not on record
Public records show no sewer connection for this address. Verify directly with Santa Monica Public Works Department before any design work begins. If a new connection is required, budget $8,000–$25,000. This is the single biggest variable on this property.
!
SMR1* overlay designation
The asterisk on the zoning code typically indicates a special overlay or historic district condition. Verify with Santa Monica Planning what the asterisk references for this specific parcel before committing to any design path.
!
Short-term rentals not permitted
Santa Monica prohibits rentals under 30 days on ADUs. Units must be rented on 31-day minimum terms. This rules out Airbnb-style income but does not affect long-term rental projections shown above.
Absentee owner — motivation signal
Property is not owner-occupied. Absentee owners are statistically more receptive to development conversations and more likely to monetize property potential. Strong positive signal if this is an acquisition target.
Ministerial ADU approval available
Under current state law, an ADU on this lot qualifies for ministerial approval — no public hearing required, no neighbor notification, no discretionary review. Permit timeline typically 60–90 days from complete application.
PrefabIQ Score™ Breakdown

How we got to 92.

Density Potential
26 / 30
Strong — 3 units clearly viable, SB-9 split TBD
Prefab Feasibility
18 / 20
Flat lot, public water, sewer flag knocks 2 points
Market Yield
20 / 20
Santa Monica West Side — top CA submarket
Arbitrage Advantage
20 / 20
Maximum spread — high CA labor cost market
Regulatory Clarity
8 / 10
Ministerial approval available · asterisk TBD
Verification needed
3 items
Sewer · overlay · SB-9 eligibility
Total Score
92 / 100
Exceptional opportunity · top tier
Recommended Action Plan

Your path forward.

  1. Verify sewer connection
    Contact Santa Monica Public Works before any design work. This is the single biggest budget variable on the property. Allow 1–2 weeks for a clear answer.
  2. Confirm SMR1* overlay condition
    Contact Santa Monica Planning Division at (310) 458-8341 to verify what the asterisk references and any associated restrictions on this parcel.
  3. Confirm SB-9 eligibility (if pursuing Scenario C)
    If maximum density is the goal, request a formal SB-9 eligibility determination from Santa Monica. Otherwise skip — Scenarios A and B do not depend on SB-9.
  4. Schedule your Building Intelligence Session
    Included with this report. We walk through the full custom-vs-catalog comparison on this specific lot, including factory partner recommendations and a realistic timeline to certificate of occupancy.
  5. If moving forward — we activate your build team
    Step 3 of the PrefabIQ process. We introduce your vetted CA architect, GC partner, and direct factory access through our supply chain — and stay engaged as the strategic partner from feasibility through completion.
This is a sample report

Find out what's possible on your property.

Your Property Potential Report is delivered in 48 hours. Includes everything you see here — specific to your address, your zoning, your goals.

PrefabIQ is an independent strategic partner connecting California homeowners to proven prefab architects, GCs, and direct factory access through our supply chain. All projections are estimates based on current market conditions and publicly available zoning data. Verify all zoning and permit requirements directly with the relevant municipal authority before committing to any project. Sample report prepared from publicly available data for demonstration purposes.