All Forum Posts by: DG A.

@Arlen Chou That's an AMAZING DEAL in Oakland! How did you negotiate that building down to 770K? Does that building need a lot of work?

 

Could my SDIRA invest in a 2nd position note secured to an investment property I own? 

For example,  the SDIRA loans $200k as a 2nd position loan against a $1,000,000 property I want to buy. Then I go get $800k in a mortgage loan from a bank,  and I buy that $1M property. 

I personally am not getting any income from the debt I borrowed to buy the property. And every month I repay the SDIRA according to the loan amortization schedule. 

could we do this as a means of getting funds for a down payment? 

Kind of makes sense. It's about the right distance from San Francisco for people looking to get out of the city and covid.

If you have the equity, you should consider taking a HELOC out on the main house to fund the construction. Otherwise, there are a couple of pretty good products from US Bank that can help you finance the construction of the ADU. Try reaching out to Karyn Jones at US Bank, I can send you her contact info, just PM me.

How much did you pay in impact fees for going above the 750 sq ft ADU size? I've heard the Impact Fees are pretty hefty but proportional to the number of sq ft over 750.

I'd suggest holding on to that property. Ask the folks who bought in the 90's what their bay area property has done for them.  Some folks bought their homes in San Francisco for $50,000 back in the early 90's ... how's that working out now? You won't be sorry if you hold for the LONG term. 

Hi Folks, 

I'm planning a bathroom remodel. I live in this home now, but it will be a rental some day. I'm looking for input from folks with experience. 

How do you handle waterproofing your shower? There are a lot of systems out there from RedGard to Schluter Kerdi. What do you use in a rental and why?

For the shower enclosure, do you use tile or a 3-sided plastic shower enclosure? Which do you prefer and why?

What can you do to prevent water vapor from traveling from the shower into other rooms and causing mold in the bathrooms or rooms around the bathroom? How do you prevent mold?

My current thoughts:

• Insulate exterior walls with basalt stonewool, like Rockwool
• Use cement backer board behind the shower
• Use DensArmor Plus Drywall in the bathroom because the gypsum is wrapped in fiberglass mats and should prevent mold
• Encase the whole bathroom in Schluter Kerdi Water membrane
• Still deciding between tiling the shower, or using an acrylic shower enclosure.

This is probably overkill, but I'd rather have a belt and suspenders on, than find out I need to remodel a bathroom again in 5-6 years.

I'm in Oakland, CA, in the Fruitvale. Curious what other folks in the San Francisco Bay Area think. 

awesome article! So, you can have the mortar and the brick tested.  And it seems the chances are,  you can keep the existing brick foundation and do an earthquake retrofit using a few (3X) more bolts through the mudsill.

Hayden, congratulations! The place looks great,  and it sounds like a solid deal in the end.  Covid has blown up the permitting process! I'm working on a remodel now,  and it looks like it will take me a year and 2 months to get through it. 

It's up side i hadn't thought about for rent controlled units rented below market rate. They're recession proof in a certain manner. 

You can do this if you buy a duplex. I did it in 2016. I went from renting a 2 bedroom for $2,000/month to owning a duplex and living in 2 bedroom apartment that I owned for  ~$1800/month in mortgage payments (after rent is paid). 

You should also look into the NACA loan for a 0% down loan product with no PMI. https://www.nacalynx.com/naca/...

And look into the American Dream Loan from US bank. It allows you to buy a duplex for 3% down with no PMI. You need to ask for that product specifically they don't advertise it because it's not a profit center for them, it helps them conform to requirements in the Community Reinvestment Act. https://www.usbank.com/corpora...