Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
New Member Introductions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 6 years ago on . Most recent reply

User Stats

14
Posts
3
Votes
Missy Longshore
  • San Francisco Bay Area California, USA
3
Votes |
14
Posts

New from SF East Bay, CA looking for ADU/live in flip/travel tips

Missy Longshore
  • San Francisco Bay Area California, USA
Posted

Hi! I'm new to the Bigger Pockets Forums by way of the Bigger Pockets Money podcast by way of the FI/FIRE movement. I've owned my own business for 6 years and I work from home in my 859sf 2br/1ba San Francisco East Bay home I bought as a foreclosure with an FHA loan. While I love my place, I still owe about $23k in student loans at 1.75% interest and $300k on this mortgage and I'd like to continue to build my wealth. I'm looking for tips in three areas:

1. Building an ADU in El Cerrito, CA. Prefab ADUs come in around $100k but I'm hesitant to take on a lot more debt. What can I get that's between a shed and a tricked out high end one where I'll get a good ROI? Will this increase my property value or should I just think of it as a rental unit/place for me to live while I rent out the main house?

2. Live in flip: I could convert my home from a 2/1 to a 3/2 (there's a stand up basement, unfinished, in my home. How do I begin thinking about whether this would be worth it? Where would I live - it would be tough for me to get another property for under $1M in this area?

3. Travel rewards: Thanks to the FI community, I just earned my first 90k Chase travel rewards and I'm looking for someone knowledgeable to help me find the best way to redeem them for a trip from SFO to Geneva in Feb. 2019. Any suggestions for that and for how soon I need to redeem or to find if there's a travel partner with a good route/mileage bonus I should redeem through?

Thanks so much!

Missy

PS. I also have lived in Spokane, WA and could think about buying a rental or other property there in the long term so if anyone has stats on that as a market that would be great. Thanks again!

Most Popular Reply

User Stats

105
Posts
21
Votes
Lynn T.
  • Real Estate Agent
  • San Francisco, CA
21
Votes |
105
Posts
Lynn T.
  • Real Estate Agent
  • San Francisco, CA
Replied

Hi Missy,

I did convert my 2/1 into 3/2 (addition within envelope in the basement). It was one the best decision we have made. We lived in our house during renovation. I think that if you have a choice of making it into a third bedroom and private bathroom with its own entrance. You could also consider short-term or furnished rental if you so choose, that would give you back the highest return. The reason is that you will likely pay a marginal more for property taxes after you renovate, marginal insurance premium increase, tiny bit more utilities, and that's about it. You have then increased the value of your home (forever) by adding the living square footage and bedroom and bathroom count. And the ability of your home to partially be an investment unit.

If you want to discuss more, please feel free to DM me.

Lynn

Loading replies...