All Forum Posts by: David Maldonado

@Steve Graves some local restrictions could be placed when permit is approved for ADU/JADU that will reduce the pool of home buyers. Sunnyvale in Bay Area for example, places a owner occupied deed restriction when approving JADU permit (not for regular ADU though).

“ Owner Occupancy Required/Deed Restriction (JADU Only): The property owner must live in either the JADU or the primary dwelling. Prior to issuance of the building permit, the property owner shall sign and record a deed restriction that states that the property shall be owner-occupied from the date of recordation as long as the JADU remains on the property. The deed restriction forms and recordation instructions will be provided by the Planning Division.” From https://sunnyvale.ca.gov/civicax/filebank/blobdload.aspx?BlobID=23584

Hi David thanks for the update. I wonder if the city of Long Beach will require solar on my detached garage conversion. I've heard that some cities do and some don't. In any event my plans are in plan check and I'll find out soon enough.

Thanks David, I actually just had that same thought yesterday. Seems easy enough lol !

I closed today on a SFH in North Hollywood CA (91601). It's a big 10,400sf corner lot which currently has a 1,614sf 2Bed2bath home. This is an investment property (buy/hold) that I'm planning to develop considering the new 2020 laws. Here's my plan that I have done extensive research on and have already been talking with an expeditor (I recommend using one if your doing one of these ADU/JADU projects right now since the city is backed up and honestly confused).

1. Add small bedroom to main house in existing space so I now have a 3bed/2bath SFH

2. JADU 1bed/1bath attached garage (Maxed out at 550sf)

3. ADU 1,200 SF 3bed , 2bath MANUFACTURED HOME place on permanent foundation.

This plan allows me to cash flow almost $3,500/month with all 3 rentals. (used bigger pockets calc.) 

Im funding the project with a 10/1 Arm (3.65% !) and then using a HELOC on my primary and some cash for the JADU/ADU projects.

I have confirmation from the city that the manufactured home is permitted and I have been to two factories to see the units in person.  They are an amazing value at almost 40% of stick built cost and are built extremely well these days.  A renter in my area would pay the exact same amount for a brand new manufactured home as they would a stick built (they probably wouldn't know the difference since its put on a proper foundation anyway).  I advise you to research them. I'm not talking modular or prefab.  "manufactured homes" yes previously known as mobile homes, but they have advanced tremendously in the last few years. 

I'm hoping appraisers start to see the value of these additional units in the next few years so that I can Refi into a traditional 30yr while rates are still low. If anyone has information re: fannie mae freddie mac NOT lending on this type of property structure please post.  I'll continue to update on my progress with this project for anyone interested. Thanks for sharing all the info. -Eric

Hi David did you get your place appraised? If so then what was the value? Thanks!

Have you considered converting the garage into a JADU thereby avoiding the solar requirement, and then using the rental income from that to qualify for financing your ADU? Garage conversions are cheaper than detached, especially when you consider the solar requirement. You would then have at least two units on the property earning income, three if you aren't living in one of the units.

I’m not sure what you mean by “attach it”?