All Forum Posts by: Daniel Savage

I am looking to finance the construction of an ADU in Oakland. I own a duplex and there is an existing ~550sqf building that I am going to convert into an ADU. I haven't been able to find anything better than a personal loan because banks I've spoken with will not give financing for an ADU on a multi-unit property. Has anyone else overcome this hurdle?

I'm totally new to real estate. Ideally, I'd like to buy a 2-4 unit building, live in one unit and rent the remaining units, and have my monthly payment be pretty close to or below a market value for rent. I've started doing research in the past few weeks, and I'm finding that it seems near impossible to generate cash flow buy purchasing property in San Francisco. Is that typical in expensive real estate markets like SF? Or am I thinking about this the wrong way? A local real estate agent is sending me listings every couple days, but the rental income on these properties isn't close to 1% of the home value. Other things I'd like to learn about are how you structure deals when you get help financing. Right now I can't afford a down payment and I might get help from Bank of Parents, so I'm wondering how have you guys split property in the past? Based on percent of down payment?

Other things about me: I'm from Detroit area originally, but I've been in the Bay for 4 years, 2 of those in SF and the other 2 in San Jose. So I moved from one of the cheapest cities to one of the most expensive. I work for a small consulting firm in SF doing financial due diligence for mergers and acquisitions mainly related to private equity deals. I've got a bachelors and masters in accounting from Michigan State (go green!) and a CPA. Very open to thoughts on good meetups in the area or best practices on using BiggerPockets. I love the Podcasts, btw! I've listened to 3 or 4, and #48 with Darren Sager is my favorite so far.

Best,

Daniel