All Forum Posts by: Andrew Maxion

@Diana Jing Thanks for posting! I've been looking at them for a while now, so it's nice to have a live feedback review about the process. 

@Robert Ring Love the detailed breakdown! I've been seeing a lot of investors using this strategy for their Buy n Hold strategy. As goes for STR for any ADUs tends to be tricky as most jurisdictions won't allow it or, in some cases, must be owner-occupied for the JADU specifically. You could, however, occupy the JADU yourself and rent out the SFR and the ADU with no problems. I would suggest verifying this with your city's planning department.

I love how many folks are pointing out ADUs! Either attached, JADU, detached ADU, this is a wonderful way to take advantage of land you already own and scale your portfolio!

Hi @Vijay Gupta,

I'm a huge fan of house hacking and perfect for folks just starting in real estate investing. One thing to note Multi-family investing in the Bay Area is competitive, and some folks would lose out on bids if they don't have cash offers at hand.

As you consider multifamily units, you can also look at building an ADU. I specialize in detached prefabs in CA, and a lot of investors that I speak with are purchasing SFR and build ADUs to effectively be a duplex for impressive cap rates and high CoC return. Another strategy you can also do is Purchase a multifamily unit, add two detached units, and rent out the rooms in the dwelling and the other ADUs.

Many things to consider, but at the end of the day, as long as you analyze your numbers and make sense, anytime is perfect for real estate investing.

Hope this helps and good luck!

Hi @Jonathan Feliciano,

Love the idea of investors maximizing the most out of their SFH!

I work with many investors around the Bay Area, and many are looking to add ADUs onto their properties. The reason being is that building ADUs can effectively turn your unit into a duplex and add more streams of income.

Most investors either Buy n Hold or House hack for their strategy, and these secondary units can have high cap rates and easily 15% CoC return!

As goes for doing it yourself, this can potentially save you money but can take a year or two out of your time invested in this. Most investors don’t want that headache, so they hire a service that would take care of everything A-Z.

Hope this helps Jonathon, and glad to discuss more!

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Hi @Daniel Krantz,

I work with many investors regarding their ADU investments, and as long as the property is zoned residential, you can build an ADU. With the new state laws that Gov. Newsom passed made ADU restrictions more relaxed than ever before!

Of course, I would still recommend checking on your city/county set back regulations and requirements as those are factors that will help shape what size you can build.

Also, there are a few things to consider, such as a prefab solution or a stick-built approach. I specialize in prefab solutions and recommend this method as a more cost-efficient and faster building process.

Hope this helps with your search, and glad to discuss more!

Hi @Wesley Yu,

I specialize in prefab ADUs in the Bay Area and discuss this with many homeowners/investors. Many appraisers follow sales comps analysis when conducting their evaluation, where they check for other SFH with permitted ADUs that are sold in your area. However, with the new state laws that relaxed these restrictions, many homeowners/investors are picking up quickly on this trend and are taking advantage of this opportunity. With that being said, using this as a House Hack/ Buy N Hold is the best strategy for ADUs as you'll find high cap rates and returns on this investment.

Hope this helps and happy to discuss more!

Hi Luis,

ADUs are smart investments that a lot of investors are looking into to have in their portfolio. I'm in San Francisco, and ADUs have been increasing in demand because of the new state laws. A few benefits to consider if you are thinking about building an ADU.

1. Adding an ADU will legally add square footage and # bedrooms to your property that will add value.
2. Building a brand new ADU can be just a fraction of the cost of buying a second unit.
3. If you build an ADU on SFH lot, you can effectively rent out both units to be just as effective as a duplex by adding multiple income streams.

Of course, location does play a part on how effective an ADU can be. Ideally would recommend considering it if you are renting the unit in a high populated area.

Hi @Paul Wolfson,

Beginning this year, Gov. Newsom passed a series of bills that relaxed regulations for ADU building! One of the new bills ,sb-670, states HOA can not stop you from building an ADU. Here is a link for reference: https://www.nolo.com/legal-updates/owners-of-california-properties-governed-by-hoa-may-no-longer-be-prohibited-from-building-accessory-or-junior-unit.html

Another thing to note, if the city/county says otherwise, these new CA state laws supersedes local regulations. Huge win, as CA itself is suffering from a housing shortage and thankfully with these new laws homeowners/investors can now start building.

Hope this helps and glad to discuss more!