All Forum Posts by: Alex U.

Here are the streets in question Tait and Kelly. Real estate is not an efficient market.

Good conversation, I would personally avoid anything on Kelly and Tait.  Lot's of people shot at Kelly park over the years. LV had a big gang problem in the 70s-10s.  It's gotten better, but anyone who knows LV well, would avoid certain streets.  Real estate is certainly more than spreadsheets and cap rates.

https://www.biggerpockets.com/blog/2024-rental-market-foreca...

Since July of 2023, rents seemed to have topped for the time being.  More units coming online, and more people sharing spaces due to a lack of affordability.  We have had to cut rent for new units 8% from the previous lease.  This could be seasonality.  We saw rents go up 50% between Mid 2020 - 2023, at some points rents will revert to a long-term mean graph.

In California if you are build I g duplexes… do you need an architect or will a “designer” be okay.  ?

So one interesting thing to note, when contractors throw around numbres of $sq/ft. It actually does not make much sense. For example, take a look at Snap ADU ( https://snapadu.com/adu-floor-plans-1-bedroom/) . Here are 2 1/1 floor plans

1/1 - 425 sq ft = $529 sq ft 425 sq ft, $225,000

1/1 - 993 sq ft = $342 sq/ft 993 sq ft $340,000

If you are building multiple units lets say 4-20, the $/sq ft makes absolutely no sense at all.

If you want to get down to $150, one has to manage the project entirely.  With rising interest rates, rents are getting squashed as the cost of capital is becoming too high for construction (12% construction loans).  This will trickle down to the build side, and GC will have to start settling for $250/ft and less.  Give it 6-12 months, and I think we see prices coming back down to earth, as the Fed keeps rates very high.

Does anyone know of a basic construction calculator or Work Breakdown structure?  It would be great to enter total sq footage, number of bathrooms, linear feet of kitchen, and finish quality( low, med, high) and get a breakdown of labor and material, roughly speaking.

For example
- 8" foundation, $/per sq ft

- Framing $/sq ft

-no of bathrooms/kitchens cost of rough plumbing

-rough electrical

etc etc etc

Typically if an architect is designing a duplex ADU, with the same floor plan on the top and bottom. They may charge $8-12k.

If this design was going to be replicated 8 times, ie 16 units total, what is a fair cost to pay for design, given it is a copy and paste of the first one?

Thanks appreciate your feedback.  I guess my only option is to cash out refi property A, and roll into construction costs for B.

1. Property A was purchased 10 years ago.  

2. Property B was purchased 3 months ago.

I would like to sell Property A, and 1031 the proceeds into an account.  Then use those funds to pay for the new construction build contractor costs on 2 units next year on property B.

Is this possible?

Does anyone have a cost breakdown for a new ADU Construction? Contractors are bidding $300/ft. But I am looking for a construction project management breakdown for a simple 1/1 bed bath 400 sq, ground up construction ADU. Additionally, looking to see, if we build 1 unit what the cost would be, and for each additional unit we build, the cost should go down by 2% or something like that. So if we build 10 of these, maybe we save 15-20%.

Looking for something like this:

Design - 

Permit fees-

Site prep - 

Foundation - 

Framing - 

Rough Plumbing -

Rough Electrical -

Insulation-

Drywall - 

Finish plumbing - 

Finish Electrical

Cabinets and backsplash

Flooring and trim

Misc  finshes (closets,  

Site cleanup