All Forum Posts by: David Maldonado

Would it be a loophole to avoid solar if I were to build an ADU of 1000 sqft and "attach it" to the home even though their will not be an entrance to the house just like the JADU? Wouldnt it fit the "has to be part of the house" criteria from a legal standpoint?

I agree with you John that's its well worth it. It will pay itself off in a few years and after that its all cash flow. Thanks for the advice, I'm going to start calling around as the year comes to an end. I first need to wait before I add to my Debt to income ratio because I'm coming up on my 1 year occupancy requirment next month so I can house hack my next home.

 I can't find it anywhere on the Ca title 24 part 6 bill but from all the articles I have read it is only required if the unit is detached. Sorry I just realized you said yours is detached, so yes you're more than likely going to need solar. It would have to be attached to the house to be considered a JADU. I've called a few places for a quote and they couldn't help me because its not built yet. I just wanted a ball park number.

I have spoken with my county's city planning and building department and they are not very informed on the new bill. The whole conversation was pretty much me educating them on it. They're just waiting on the new guidelines to come out.

 Thanks! I'm trying to keep this new unit under 60k but I don't know how much the solar will be. I've considered helocs but I don't have enough equity in my home for that. I have about 12% maybe and there aren't other homes with ADUs for comps. I'm waiting on the new year as well to save on the fees. As for the solar, I believe if the detached unit  only needs the solar, not the entire house. And a garage conversion does not require it either since its an existing space and its also considered a JADU (under 500 sq ft). Yeah right now biting the bullet on the higher interest rates seems like the better choice. I plan on paying it off ASAP.

Hey y'all,

Anyone know of or have experience financing an ADU? From what I have been researching, their are renovation fixed rate loans like homestyle loans that fund the ADU but don't display the rates on their sites. I built my first 1 bed 1 bath 488 sq ft ADU using a personal loan but the rates were high (11% for 3 years). Just paid itself off from the rental income the ADU brought but I'd rather not go that route as this time I will be building a 2 bed 1 bath 1000 sq foot detached ADU and CA has a solar requirement that will go into affect Jan 2020 and the interest will add up. Expected rental income from that unit is $1700-$1900 (I live in an area in CA where this is a fair price and the demand for ADUs are extremely high).

Also I know some loans require a contractor, but I'd prefer to do some of the work myself.

I personally believe investing in an ADU in expensive markets in California is a great idea. I would wait on it until January of 2020 when sb 13 kicks in and you'll save a lot of money on the permits. How many quotes from contractors have you gotten? 100k just seems too high especially for a conversion of an existing area. If you're handy and have time, I highly reccomend you do some of the work yourself and you'll save a lot of money. I conveted my garage into an ADU for 35k (with permits) I outsourced and managed the electrical, plumbing, drywall and texture. Im planning on adding a detached 2bed 1 bath adu on the right side of my home early next year.

Having a stranger live close is not bad and will depend on if you properly screened them just like any other tenant. I fenced the backyard for the adu so they have their own backyard.

Vaguely. Doesn't it only apply to fha loan users? Also not 100% sure but I think that also requires that the work be handled by a contractor. I'm trying to rehab it myself.

 Thanks for your input. Yes conventional seems like my best option as of now. I have also been reading up on homestyle loans that can be used to fund fixer upper owner occupied homes.

Hey BP community!

I am coming up on my 1 year occupancy requirement next month and will need to move to Fresno ca for college (also because the market is so much more affordable). I have used half my entitlement of my va for my current home. I am debating whether to go with the no money down with the va loan, but won't have full entitlement. Or go conventional (Navy fed has 5% down no pmi) and qualify for a higher loan amount but ultimately I want to find out about how to get a rehab loan in order to buy a fixer upper that I want to live in. I know the va is more strict when it comes to "livable conditions."  I would prefer to buy a home in Clovis ca if the deal is right.

I agree with you on that. But from what I have been reading and listening to the bp podcasts, isn't it important to find out what they're needs are? I just think going in like that from the beginning won't separate me from others that have probably tried to do the same.

Hey BP community!

I decided to go give driving for dollars a try to hopefully land an off market deal. I managed to find a house that looks run down.  The backyard looks like a dump and the entire neighborhood can see it. Sits on a corner lot, front yard is hideous and when I knocked on the door, the door almost opened up. The owner wasn't home but managed to get information from the neighbors. They say the home is free and clear and the owner (obviously) doesn't maintain it. I plan on sending direct mail and from time to time pass by in hopes of him being home. How should I approach the owner if he decides to get in contact with me? 

Also anyone reccomend any books on finding off market deals?