Milpitas police busted a marijuana-growing operation right across the street from an elementary school Friday morning.

The Milpitas team raided a house on Dixon Road Friday and found a drug operation that has shocked unsuspecting neighbors.

There was nothing unusual the outside of the house, but police found 400 marijuana in different stages of growth -- and worth about $600,000 -- inside the home.

"What we're finding is most of these grow houses are rental properties because they're causing thousands of dollars in damage," said Milpitas police Lt. Sandra Holliday.

"Oh my God, it scares me," said Shalimar Temero, a neighbor. "I was so surprised. This is a really nice neighborhood and everybody knows everybody."

Police arrested 38-year-old Liem Ho at another home in Milipitas in connection with the growing operation.

Neighbors said they didn't recognize Ho.

Police said he was responsible for the operation.

Police said there are signs a home is being used for the cultivation of marijuana, including that the tenant is never there, more ventilation is added to the structure, modified utility equipment and the sound of fans coming from the home.

"You would expect a back street in a corner, right? Somewhere where there's no traffic," said Bob Tempero, another neighbor. "This is traffic. This is busy. People are on the sidewalk all the time walking, so it's like hiding in plain sight."

Ho was booked into the Santa Clara County jail for illegal marijuana cultivation and the theft of utilities.