All Forum Posts by: Jake Weir

Is there room on the lot to do an ADU?

@Emil Pinlac The City and County have detailed information on their websites. The City waives some of the fees if the property is in certain areas (downtown, etc). Do you own the property or are planning this into a potential purchase? I've not developed an ADU, but done some of the digging. There are lots of criteria like setbacks and maximum percentage of ADU SF compared to the main building that affect permitting costs or whether the ADU is even allowed.

https://www.cityofsacramento.org/Community-Development/Resources/Accessory-Dwelling-Units


https://planning.saccounty.net/Pages/Accessory-Dwelling-Units.aspx

@John Moore I don't see that exemption, but if you are sure, you're sure!

My opinion would be Yes, if utilities are now included in rent, that new value would be subject to how much that X.X% max increase could be.

I'm commenting on the 10% number you cite...Are you in the City of Sacramento limits?  If so, there is an ordinance on how much you can increase rents.  It's tied to CPI.  Website below says max increase is currently 8.3%.

https://www.cityofsacramento.org/Community-Development/Code-Compliance/Tenant-Protection-Program

You can look up the rates for water, sewer and storm drain. Here is a link. You'll want to clink on the separate links for water, sewer, and storm drain. If you end up with a PDF with many different rates for different sizes and types of properties, you are in the right place. https://www.cityofsacramento.org/Utilities/Services

If you bought 5 years ago, you should have significant appreciation AND cash flow. The question is: if you sell one or two, where do you go for superior returns? That is the challenge.

That large employer is Centene. This is out in the public...More pressure on housing with quite a number of new, high paying jobs.

Oleg P. Just curious, did you decide on a direction?

@Quang Tran Here is some information to help you with you sharpen your numbers:  

I'd budget 2% for closing costs.

This is a lender that can be very picky with qualifying, but you can check live rates as you wish and do not have to provide them any personal info. No hounding or selling. https://www.provident.com/QuickRatesCalculator

Also, there is payment calculator at the bottom of individual properties on redfin.com that estimate the mortgage payment (based on whatever downpayment you enter), taxes and insurance, and will list monthly HOA costs (if any). Not bad for a ballpark monthly estimate.

You can look up water, sewer, and storm drainage utility costs for the City of Sac here: https://www.cityofsacramento.org/Utilities/Service... County: http://www.sacutilities.org/Pages/default.aspx

Take a look at craiglist-room share advertisements for what other listings are asking for.  This will give you a few data points for different areas.   Your estimated rents look conservative.

Where are you seeing 5BD/2BA single families for $350K?  I'm seeing on a couple in South Sac... 

Does the cost of land include going through entitlement (all the fees and plan reviews)?  As an exercise, I made a quickie spreadsheet to run numbers on new build, renovation, or 2nd units a year or two ago.  The cost of entitlement could easily be in excess of 30k depending on what you propose to build.  Some areas in Sacramento have slightly cheaper developer fees, and if I remember right, Oak Park is included.

Take a look at the fees for yourself at the website below:

https://www.cityofsacramento.org/Community-Develop...