All Forum Posts by: Andy C.

@Tyler Rowland great advice thank you Tyler

Hi BP,

My wife and I are looking to get a HELOC or home equity line of credit on our Primary Home Care in San Mateo / Bay Area, CA.

The challenge that we are running into right now is that we had a credit score ding because of a late payment. Subsequently as a result of talking to two of the larger institutions they cannot underwrite because of this. That being said, we are in great financial standing with steady W-2 income and multiple investment properties that generate great cash flow for US. However I've been told that because of strict underwriting regulations the larger institutions we'll have trouble looking past this.

Has anyone experienced a situation like this before and can potentially point us in the right direction with any thoughts, advice or recommendations on where to look next? Feel free to PM if easier to communicate.

Much appreciation advance.

@Matthew Forrest thanks for thoughts here.

I can't speak for David but I don't think that everyone on average can afford (even with refinancing home and heloc available - 150-200k).

San Mateo County has loosened their requirements and I do think that there will be a surge in interest to be able to take advantage of this opportunity for those that can afford it.

@David Hartman hi David, great thoughts here. To be fair the cost Associated that I shared would have been for roughly 800 square feet and attached to the home. (versus detached)

That is my goal actually is to find a way to financing without dropping entire amount ie. 150-250k. I've looked into a few pre fab, and they're costing about that much actually. Not cheap!

@Cecilia Coyne hi Cecilia, I have not yet submitted plans and I'm in the thick of the entire process right now edit starting point. I am trying to figure out if there is a way to finance this thing as opposed to funding the entire amount from a HELOC. I'll send a direct PM TY!

@Heather Wilkerson hi Heather I am familiar with Guaranteed Rate and have worked with them successfully before would you be able to direct message me CJ's contact info I will gladly reach out to him! TY.

HI Bigger Pockets,

I'm looking to add an attached or detached ADU(granny unit) on my existing home here in San Mateo in SF Bay Area.

The rough estimated costs for contractor, labor and materials is between 280-320k. (about 6-800 sqft)

Is anyone on here familiar with or aware of any programs or products out there that would allow for financing this? And or has anyone been successful with this sort of a project?

Thanks in advance for any tips!

Andy

Ps. Last we talked we had a few blemishes on our credit report hopefully that does it make an impact but I want to see if there are any other products or programs out there that would not affect a loan like this. 

@Bill S. Good to know. The purchase of this property in question was not a 1031. But could be a possibility on the exit. Cost seg study and feasibility study are all net new topics for me!

@Greg Scully I didn't even know a separate professional could provide a service like this. Always assumed it was or could be a CPA.

We are in that boat. Bay Area folks(yes. One of those...) but the consideration is to help offset our W2 + cash flow incomes.

Thx @Matthew Baltzell!

I dove into MF but with informed research of course - Reading and hearing about all the benefits. I try and buy properties that cash flow from a cash on cash perspective. This makes it easier to have multiple exit strategies. First of which I suppose would be the intent to buy, increase value/rents, and then buy and hold and cash flow. Maybe some appreciation but increase NOI. That period could be mid or long.

The other that comes along with it is the same as above. But now with the idea of cost segregation and Depreciation, and getting the advantages of that, I'm curious if applying this could or should impact how tax strategies. Or...vice versa?