Newb/Engineer buying first home in CA with completed JADU

[Zach Stiegler]

Investment Info:

Single-family residence buy & hold investment in Lakewood.

Purchase price: $852,000
Cash invested: $42,600

My personal home, rent out JADU. PITI = $4520, current JADU studio rent = $1300.
Looking to save up for converting garage into ADU. Out monthly surplus of cash = $2500, so it'll take a while to save up to afford ADU.

What made you interested in investing in this type of deal?

First home desired to become a mid-life adult (30 yr old). JADU already built starts me off with tenants and rent immediately. Has AirBnB potential, but monthly rental also works.

How did you find this deal and how did you negotiate it?

Redfin, used a Realtor

How did you finance this deal?

5% down taken from stock portfolio.

How did you add value to the deal?

None yet, the plan is to convert garage to ADU.

What was the outcome?

Still living in it!

Lessons learned? Challenges?

Still learning, not sure what challenges will ensue.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Brad Hansen, EXP Realty

[Mike Birdwell]

Zach,

I am very interested in the title restrictions that came with the house as the previous owner had to sign the covenant to live on the property. This would have been conveyed to you.

Do you see any legal way to move to a new primary residence without selling or needing new approvals from Regional Planning and Building & Safety for the re-conversion to meet applicable single-family residential development standards under Title 22 (Zoning) of the County Code?