All Forum Posts by: Chakri Dew

Thank you all for the replies and a Pointer to reach out to the city building inspector. To my surprise they are so nice and ready to answer any questions. 

According to them, bedrooms doesn’t need a door. 

Hello BP fellows - Any requirements for a bedroom to have a door? I'm converting a basement into a unit and trying to understand the building code for having a door? I'd like not to have a door and keep a simple opening for a reason (Tight space). I researched, and none of the articles said door as a requirement. (Of course, we will build an egress window and closet.)

We already pulled a permit with a door; I'm leaning to change it and have a straightforward entry without a door. Any thoughts?

The property is in Northern California.

Hi - Any contractor contacts from Fairfield/Vallejo/Benicia area? I would like to remodel a unit. 

1. Kitchen (Install range, Window, Exhaust, Dishwasher, sink)
2. Bathroom (Convert Half to full bath)
3. Install a Door

Exactly Greg. 

Lately, most of the cities have eased the ADU rules and big-brother (Freddie Mac and Fannie Mae) rules are still uninviting.

Some good info from the previous posts.

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

Thanks again Dan.

As per my loan agent, even if get permitted ADU (now it becomes Duplex+ADU) I might not get the FHA loan. This is a surprise to me.

Here is my plan,

• - Buy a duplex + unpermitted place with hard money loan
• - Get a permit and convert the unpermitted place to an ADU (Already spoke with City planning personals)
• - After conversion shop for FHA loan.

My loan officer (he is experienced) says it is not possible. His lender pool doesn't give loans to a duplex(multi-unit)+ADU.

I just wonder how come all these multi-units in SF, LA, Oakland cities with ADUs get a loan. If my loan agent is correct, how are others doing? I have 15 days to decide and I am still stuck at exploring loan options.

In some forums most of the investors got FHA loans in the above scenario, I am confused. Can someone guide me?

I just don't want to trap in hardmoney loans despite having a permitted ADU.

Thanks for the info Dan.

It is surprising, in some cities (Oakland, Berkeley) ADU permits themselves cost 60k or more plus construction cost and it does go into worthless if the appraiser doesn't consider it in the property value. Most of the cities/towns ease the ADU restrictions lately and owners are leveraging it. How do the properties get sold with an ADU at a market price?

My worry is more toward the time when I sell the property.

• Do I find any buyer to buy if the appraiser doesn't consider the permitted property into the value? Buyer has to chip in more cash to buy, risky.
• How are other investors doing it?
• Loan programs with ADU are limited, not many lenders coming forward to lend loans with ADU, it is true?

Hi Folks - 
First time investing in a multi-unit.

I am on a contract and might close in 30 days if everything goes well. It is a duplex plus a garage converted without a permit as a studio according to building code. I spoke with the city and got to know I can get a permit (with the 2020 new ADU rules) without much hassle.

Question: According to my loan officer, Freddie-mac and Fannie-mae loans do not come forward to loan the Multi-unit + adu. Single-family + ADU is more favorable. Is it true? Even if lenders consider to loan, permitted ADU does not come under appraisal value, this is shocking. Is it true?

I think my loan officer does not have enough experience with multi-units or maybe I am too noob to understand.

Edit: I just found some info from https://sf.freddiemac.com/faqs...

• Q1. Is a Mortgage secured by a property with more than one accessory unit eligible for sale to Freddie Mac? click for dropdown

  No. A Mortgage secured by a 1-unit property with more than one accessory unit is not eligible for purchase by Freddie Mac. Additionally, a 2- to 4-unit property with one or more accessory units is not eligible.

Hi BP'ers,

I am new to the multi-unit world.

How do you calculate the ADU's price per sqft if it is not in the county records? I am assessing a duplex property and an ADU (ground floor unit) rented as commercial office space some years ago. (Property is eligible for duplex and hybrid according to the county zoning map)

The price per square foot is on par with the rest of the regular units.

Two units: 600x2 = 1200 sqft

ADU: 1200 sqft.

Listed price: 984,000 [(1200+1200)sqftx$410]

According to county records, it has 1200 sqft. I am under the impression, ADU sqft is not calculated as part of the regular footage price. (correct me if I am wrong.) How should I run the numbers with ADU in the price factor?

Additional questions,

- Do I face any legal consequences if I rent an ADU, not in county records?

- How does the property insurance work for it? Do I need to take hybrid insurance or unit-by-unit?

- How do I add the additional unit (ADU) to the county records? Is it a nuisance to add an existing build unit to county records? Building codes etc come to the play and redo some work? The city is ADU-friendly and encourages them.

- Property year is not listed in the county records despite property taxes are paid regularly. Is it straightforward to add to the records with the city clerk?

Thank you. 

Chakri

I am local to the bay area and planning to invest in multi-property units. Interested in knowing the thoughts of other members.
Read some positive feedback from Brian regarding section 8. Tagging him if he has any thoughts on Berkely in general. @Brian Garlington