All Forum Posts by: Darren Chang

Hi everyone, if I need cash for an investment project, which is preferred way to get it: selling a current property to get the cash, or keep the property, rent it out, and do a cash-out refinance? A few conditions are listed below:

- The existing property can be qualified as primary residence, and there will be no capital gain tax if sold.

- The existing property has a small mortgage left.

- If I rent out the property at the current market rate, the income is no enough to cover the refinance payment and the cash flow will be negative, assuming the refinancing amount is 75% of the home value and an interest rate of 3%

- There is a chance I won't get my rent income on time given NYC has suspended rent payment

- Given this apartment is in NYC and close to subway, there is a chance for appreciation over the long term. 

Some insights into the pros and cons of the two approaches would be highly appreciated. Thanks in advance!

Hi Sung, which state are you asking about? It varies by a lot from state to state.

Hi, it sounds like your goal is to add value to your house by adding room and sq ft. According to IBC, each room needs an egress window, and the rule about the window is "the minimum opening area of the egress window is 5.7 square feet. The minimum egress window opening height is 24” high. The minimum egress window opening is 20” wide. with an opening no higher than 44 inches from the floor." Note the 5.7sf must be opening area. So if you use a double-hung window, only about half of the window's area is considered "opening area."

For the attic, the 7ft rule applies to toilet, storage, laundry etc. For livable space other than the above, it needs to be 7'-6". So you cannot count the entire 1200sf. You can only count the area within the occupiable space.

You should get permit with DOB for adding a bedroom. This is what legitimizes the modification and allow you to market the house as a 5-br than a 4-br. It sounds like you are not changing the building footprint, just converting an existing room to a bedroom. I expect the DOB would have no issue with it. What's the zoning of your house?

@Sherief Elbassuoni Hi Sherief, did you rent out the ADU? Was the house bought like that or did you add the ADU? How was the experience?

@Vic V. please refer to my original post at the Seattle forum https://www.biggerpockets.com/forums/770/topics/836918-adu-and-dadu-in-seattle-and-bellevue?highlight_post=4922741&page=1#p4922741

And also offset by the high construction cost, I guess?

@Michael Haas yes, Oregon did it statewide. Lucky them! :)

Hi everyone, has anyone recently taken advantage of the new ADU/DADU regulation in Seattle? Any reflection/thoughts on it? Thanks in advance for any feedback.

@Julie Marquez do you live in Seattle?

@Michael Haas You are right, Michael. Owner-occupancy is not required. The link to the requirement is here http://www.seattle.gov/sdci/permits/common-projects/accessory-dwelling-units

Do you know any other cities in the greater Seattle area with similar regulations. I'm wary of the land cost in Seattle.