All Forum Posts by: Cassie Chun

@Daniel Kong 

When I called Diane Sandlin’s office a couple of weeks ago I was told they are not currently accepting new clients. I was advised to call back in May. 

I’m still looking for a CPA. If I can’t find someone local, I may look to connect with some of the names listed above. 

@Leo Glazer

It can be a good idea if it aligns with your investment strategy and you have a SOLID team of professionals in Ohio to help you from afar. There are many people on BP that successfully invest out of state, but it’s not for everyone. If you haven’t already done so, take the time to learn from all the great resources on BP. Best of luck to you!

@Jerrad Shepherd

Just read a great article by @Brandon Hall that offers great advice related to your current situation. Give it a read.

https://www.biggerpockets.com/renewsblog/crafting-lifestyle-real-estate-business/

@Greg Gaudet

@Brandon Schlichter

Thank you for sharing your story! I enjoyed reading about your background and how your past experiences lead up to your real estate success story. I don't read much about individuals scaling as you have on SFH and small MFHs, so reading about your success been very inspiring to me. I'm interested in following a similar path. Was investing in your local area always a part of your investment strategy or had you considered investing in other areas as well?

@Loren Clive Thanks for the feedback. I think it’s unlikely that we would be forced to do anything since the ADU has existed without issue for many years...but I have to be mentally and financially prepared for the what if!

@Lane Kawaoka Yes, will remember this as I continue to evaluate the deal (or no deal). Appreciate the advice.

@Trey Brown You’re absolutely right. This property has flown under the radar as 3 units for 10+ years now. Thanks for the info.

@Jason Hirko Will do! Thanks.

What risks should I consider when buying a property with an ADU that is not permitted?

The property is located in Hawaii on the island of Kauai. It is currently used as 3 separate rental units, including the ADU.

The appraisal (without ADU included) came in right where it needed to satisfy the lender, so that will not be an issue to close on this deal.

Permitting office has no record of a permit for this ADU and says it may have been "lost" after Hurricane Iniki.

Property tax records show the ADU, so seller has been paying property tax on the ADU. Seller is willing to initiate the permit process, but will not commit to addressing any issues that arise in the event the ADU does not meet code/zoning ordinance. Our agent identified 3 potential issues with the ADU as it stands now - 2 are related to zoning ordinance setbacks and the other is land coverage exceeding 50%.

I realize I would have the same problems when I decided to sell the property in the future.

If it cash flows to my liking, is it still worth pursuing, or should I walk away?