All Forum Posts by: Carlos Villalta

Will, thanks for your response. Existing parks are hard to find for sale around here and when you do find them they cost a fortune. As for per space construction costs, I've talked to people who've done it for $5-7K per space easy. Going storage only sounds tempting as it is so easy to set up but I feel like having the diversity of both would be a more solid business plan. I appreciate any input here. Thanks.

Hi all - new to the Bigger Pockets forums, so apologies if this has already been asked before, but wondering if anyone here has experience renting out. a private room in their primary residence? I am trying to figure out if people generally run these are sole proprietorships or through an LLC. I'm not sure it's so straightforward to put a room in your primary residence into an LLC but at the same time worried about the risk exposure if I don't - any thoughts on the pros and cons of either would be appreciated!

I would pay off the balloon for sure. Taking the cheaper rate seems to be best play always. HELOCs tied to prime have the risk of getting higher when it comes to the payment, yes - you have the flexibility to take and repay as you wish over time but in the long run the refi would win IMO in this strategy. Good luck!

Hi Carlos,

Have you run a cost benefit analysis over the period you'd be holding a HELOC/refinance during the ADU development? Over a long enough time, the cash out refinance may be cheaper due to the lower interest rate. If the new monthly payment from the new refinance is not manageable, a HELOC may make more sense.

 This is for a modular or SIP panel home?

The hard part is inspections by city/county. The first question the county asked me when talked them about modular is that if that is built in California. It has to be state approved.  

I know that cities/counties do not give approvals for smaller things, like dry wall installed before electricals are  inspected. So a modular home fully built in china and shipped here will be out of question. 

I was considering getting just SIP panels from china, and reputed SIP panel companies in china says they do not ship electricals and plumbing as local codes monitor them closely. Overall I think it is a next to impossible to buy a modular from abroad and get approvals. If it is a shed where people need not live in, it may work.  

HELLO @Jeffrey Anderson Gil. I AM DOING MY RESEARCH AS WELL REGARDING THE STEEL BUILT HOMES. WHEN I LOOK AT ALL THE YOUTUBE VIDEOS AND TALK TO CONTRACTORS THEY ALL SAY PRETTY MUCH THE SAME THING, THEY ARE VERY SIMPLE TO ASSEMBLE WITH LIKE 5 PERSON CREW, ONLY TAKES MAYBE 15 DAYS. MAKING SURE THE SOIL IS TESTED TO MAKE SURE IT CAN STAND THE PRESSURE I ASSUME, LAYING THE SLAB OF CONCRETE KEEPING IN MIND OF UTILITIES AND ETC. THEN THE PANELS COME WITH EVERYTHING DOWN TO THE SCREWS. CHINA HAS BEEN MANUFACTURING TINY HOMES WAY BEFORE THE US REALLY CAUGHT ON. FROM WHAT I CAN SEE, THEY HAVE MASTERED THIS CRAFT TO PERFECTION. IF YOU READ ALL THE DETAILS THAT THEY LAY OUT, YOU WILL NOTICE THAT IT';S MUCH MORE IN DEPTH THAN THE US COMPANIES. THEIR STELL IS GALVANIZED JUST LIKE THE STEEL FORM ANY OTHER COMPANY IN AMERICA. I AM NOT SURE HOW THEY CAN "FAKE" THAT. SO IF ANYONE IS SAYING "TRY AMERICA FIRST" WHEN IT COMES TO THIS SITUATION, I WOULD DO WHAT YOUR POCKETS CAN AFFORD. I FAIRLY WELL OFF AND DOING FINE BUT THAT DOESN'T MEAN I AM GOING TO SPEND $100,000 MORE FOR A STEEL BUILT HOME JUST TO SAY "HEY LOOK I PURCHESED THIS IN AMERICA AND GOT TOOK". I HAVE TALKED WITH CHINA COMPANIES AND AMERICAN COMPANIES AND IT'S THE SAME PRODUCT , SAME HOUSE SUQARE FOOTAGE BUT AMERICAN COMPANIES ARE CHARGING WAY MORE. MORE THAN HALF OF THE ITEMS ON AMAZON ARE FROM CHINA. IT'S CALLED E-COMMERCE  AND DROP SHIPPING. NOW THE DOWN SIDE OF SHIPPUNG SOMETHING SO MASSIVE AND HEAVY IS GOING TO COST AROUND $6K TO $10K. THERE IS NO WAY AROUND IT. BUT WHEN YOU LOOK  OUT THE COST OF ONE STEEL PREFAB HOUSE FROM CHINA THAT IS FOR EXAPMPLE $10,000 WITH ALL INCLUDED AND THE SHIPPING EQUALING AROUND ALL TOGETHER LETS SAY $25,000. THE SLAB OF CONRETE WITH UTILITIES THE AVERAGE IS $10,000. YOUR PERMITS. LICENSE AND FEES $8000, CUSTOMIZATION OF THE HOME $5,0000, CONTRACTORS (I HAVE NOT IDEA JUST FROM WHAT I HAVE BEEN TOLD $5-$10,000 BECAUSE THERE ARE NO HEAVY LIFTING, CRANES OR HEAVY TOOLS), AND LETS DO $10,000 FOR EMERGENCIES. YOUR LOOKING AT CLOSE TO $70,000. SOMEONE MENTIONED A CERTAIN COMPANY ON THIS THREAD AND THERE SMALLEST UNIT THAT IS 600SFT IS $80,000. AND THAT IS JUST FOR THE BARE BONES OF THE STRUCTURE.  SOMETHING IS VERY WRONG WITH THIS PICTURE.THE LAST TIME I CHECKED STEEL IS STEEL. BACK IN 2016 CHINA WAS BEING ACCUSED OF USING CHEAP STEEL TO BUILD METAL BUILDINGS. BUT AMERICANS WERE KOWINGLY BUYING IT FROM THEM SO WHO'S WAS RIGHT? I AM NOT GETING INTO POLITICTS BUT THE HOUSES HOUSES HAVE WARRANTIES ON THEM JUST LIKE THEY DO IN AMERICA, SOMETHING HAPPENS TAKE THEM TO COURT LOL. ANYWAY, I AM STILL CONFUSED AS TO WHY THE TINY  HOMES HERE IN AMERICA ARE 75% MORE EXPENSIVE FOR THE SAME EXAACT PRODUCT. IF YOU WANT TO DISCUSS THIS FURTHER, LET ME KNOW. I AM STILL DOING RESEARCH FOR SOMETHING TO CONVINCE ME TO TAKE OUT A $200,000 CONSTRUCTION LOAN FOR A $10,000 HOUSE. SORRY FOR ALL THE MISSPELLINGS I AM TRAVELING BUT I HAD TO PUT MY 2 CENTS IN.