All Forum Posts by: Calvin Pringles

1. The value is increased by heated sqft, bedroom and bathroom count and property condition. In my past experience in st pete one appraiser did comps on an ADU as a Single family home and the other appraiser as a multifamily. I fell like it depends on your lender underwriting requirements and the appraiser that shows up to the property.

2.  Interesting i’ve heard rumors about this flood insurance, Until then i will stay away from flood zones since the policy will decrease your cashflow.

3.  This criteria will be based on your overall budget and also the type of roommates you want to attract and or live with.

City of St Pete is easy to work with ADU's we've done it a couple of times as investors. I would advise to separate the water and power meters.

@Calvin PringlesThank you for a very helpful article! I'm looking to house hack, renting out open bedrooms and have a few questions pertaining to that strategy if you and anyone else can help answer!

1). What average percentage are ADU's in this area increasing the SFH property values in the St. Pete area? I'm tryin to understand if the percentage ARV based on the cost to build the ADU($100K for easy math), so a property value increase of $20K or is it based on the SFH as well. So, if the SFH was purchased for $400K and the ADU cost is $100K is it in fact raising the property value by $100K?

2). Also, would you advise of stearing clear of any and all flood zones due to the outrageous flood insurance costs if looking to house hack? Or is that a mute concern, since the new phasing of everyone having to adopt flood insurance in Pinellas county by 2027?

3). Do you think it's a better buy, buying close to downtown St. Pete in an older/rougher neighborhood, but very close to downtown(less than 5min drive) or a little bit nicer of a neighborhood, but further away(15-20min drive)? My thoughts are if looking to rent on a bedroom basis, it is most likely going to be to single adults, whom I would like opt to live as close to downtown St. Pete as possible?

4). Does anyone have any solid insight into the historic gas plant district redevelopment of the Tropicana area? Do you think it's actually going to get passed this time by city council in May?

Any thoughts would be greatly appreciated, thank you!

@Calvin Pringles, I've been looking around Saint Petersburg largely for this reason, I noticed coincidentally that unlike many/most other jurisdictions, their city ordinance doesn't seem to require owner-occupancy to lease an ADU, so I thought the same thing as you. Buy a SFH, build an ADU, have a pseudo-duplex at a lower cost. But then I got some quotes on how much local builders actually charge to build an ADU, and I balked a little.

Actual example: I almost bought a property on the north side for 400k. The home itself is maybe 300k of that and was a 3/1 with 1200 sqft. It has a ~480 sqft detached garage in good shape. So I got a quote from a local construction company to convert the garage into an ADU, and they said 90k - 125k, probably toward the high end of that range. 125k. To finish the interior of a 480 sqft garage.

If an efficiency ADU costs 33%+ of the total value of the existing improvements, it's really hard to make the numbers work. Rent in Saint Petersburg is high... It isn't THAT high.

If I'm approaching it the wrong way and you have secret strategies you're willing to share, I'd love to hear them. 

(FYI I'm working with an agent in St Pete already, but if the first one goes well I'm sure we'll buy more.)

Anyone thinking of doing this approach should check out Cask Construction in St Pete, they do an amazing job. I have only heard good things - And if you STR your ADU or ASL it can acheive up to a 17% cash on cash return (assuming you dont finance the structure, if you do obv higher CoC)

Those are some great points Calvin. I would just add that people should be cautious to only buy properties that have a legal, properly permitted ADU. In Tampa there are so many that are done without permits, and it can mislead a beginner into thinking they are getting a great deal when in reality it can be a big headache and money pit to legalize after the fact.

I verified with the city and investors can add them with meters on single-family homes as long as there are no deed restrictions. I 100% agree with this being better for cash flow and appreciation in neighborhoods with limited multi-family. The numbers look a little high for quotes on adding ADUs and I am working on finding a contractor that specializes in affordably converting two car garages. 

Is it possible to legally build one as an investor and not an owner occupant though? 

The cities information seems like it’s only allowing ADUs to be added when it’s your primary property. 

Are we talking about buying properties that already have an ADU or buying St. Pete properties that have a 2 car garage in order to create an Affordable 1-1?

The city has made ADUs very easy to permit if it’s your primary but I don’t believe an investor would be able to add one with a separate meter. 

I would agree and much rather buy a single family with a two car garage to value add for cash flow if the city allows.