All Forum Posts by: Brian Larson

@Ryan M. - Thanks for the commentary.  It sounds like there is a mixed bag of experiences out there.  Boxabl may be a good solution.

However, in my limited experience and research, for every one decent prefab company, there are loads of bad ones.

Welcome @Elvis Nguyen.  I am a realtor that lives and works in San Jose.  Send me a PM if you would like to connect more.

@DJ Dawson - Thanks for the first-hand knowledge.  Much appreciated.

It looks like I can make the numbers work in Vallejo, whether I want to manage it directly or are hands off. Either way should work but the CoC return is not really where I want it to be. The investment will also require a sizeable chunk of money so I will continue to do my research and watch the market.

I'm finishing my ADU project at my primary residence in 1-2 months. Then, I will do a cash-out refinance and should clear about $150K. At this time, I am still weighing if it makes sense to invest in California or just take the money OOS.

@Brian Garlington - Very good point.  I was hoping to hear something like this from you and other active investors.  Thank you for your time.  

Thanks for the article.  I agree that Hayward is solid entry point for many investors.  However, the other 2 cities  command a larger capital investment to enter the market.

As someone looking at a lower entry points for the Bay Area, would anyone recommend Richmond or Vallejo?  If not, why?

@David Song - Lots of people leaving but even more coming / staying.  I think your reasons for the strong prices are spot on.

"There are two categories of people that move into CA:

1. New employees hired from high tech companies: usually highly educated, well paid. Those folks will have company paid relocation benefit and have no problem bidding on a house.

2. New immigrants: those folks are hard working people trying to find jobs here, that pays better than other areas. They are the workforce in the bay area, and are typically renters.

There are a few main categories of people that move out of CA:

1. Retirees: They do not need to work and choose to sell their million dollar house and retire comfortably somewhere else. They may move to FL, TX, or other cheaper regions.

2. People who can not afford the rent here: Those are people who are middle class people and who are struggling with the high cost of living here. I have a few tenants who are contemplating moving to TX, however, they have not moved yet and are still trying to survive here in Bay Area.

3. People who choose to move out, based on tax considerations and other business and employment opportunities elsewhere, or remote work."

Thanks for all the comments guys.

@Jason Hsiao - Are you confident that there is a savings?  Has that been your personal experience? I would love to hear details.

@Rick Trivedi - I appreciate the offer but I am very aware of companies in the ADU field. Have you had any personal experience with any of the companies though? I'm trying to wrap my head around why people choose this option.

@Jay Hinrichs - I have heard of Boxibl.  Have you ever used them?

For anyone interested, here is a great video link to many, many prefab ADU options (I think Boxibl is covered too).

https://youtube.com/playlist?l...

@Kevin Tsai - correct. Those items traditionally translate into a higher appraisal value.

@Matthew Forrest - I am almost done with my personal ADU project. I plan to do a cash-out refinance at the end to consolidate the date but I seriously doubt the new appraisal will be anywhere near my expense to build. In the end, like you, I hope that appreciation and increased rents over time save this investment. Only time will tell.

@Kevin Tsai - I would use caution when incorporating ADUs into your investment plan.  They work but they are not considered a traditional "value add" for appraisals.

@James Carlson - This is a great thread.  Thank you.  I think your position is admirable.

As an agent that dives deep into the niche of ADUs in the Bay Area, I can truly understand your comments.  In fact, you make me want to reconsider my own value to clients.

I regularly spend loads of hours reading online real estate forums and local city rules to keep abreast of the ADU rules. In the past, I have bombarded clients with my un-edited knowledge. I primarily used this knowledge to differentiate myself from competitors. However, in the future, I may decide to hold back more key information until folks sign-on as clients.