All Forum Posts by: David Maldonado

Hey everyone!

I am planning on buying a multifamily property in Fresno Ca (triplex or quadplex). I haven't decided whether to use my remaining VA loan entitlement or go owner occupied conventional (Navy Fed offers a good rate with 5% down and no pmi). With the VA loan I can put 0% down but it will be tougher to get a good deal with it due to their strict move ready in standards or with the conventional Ioan I can put 5% down, get a higher loan amount and have more leeway when it comes to move in ready standards (from what I heard). I believe I would have about 230k of entitlement left for Fresno county. Also for move in ready conditons: If I find a fixer upper quadplex that needs work, do all the units have to be move in ready? Or can I find a property with at least 1 unit that is move in ready and rehab the rest?

That's what I'm going to find out soon when I order an appraisal. This is still fairly new (at least legally) and then won't be much comps well at least in my area. What I could say is that people that converted their garage into a "master room with a sink and a bathroom" had much higher appraisals and sells prices due to the added room and square footage. All depends on the area. In my area conveted garages are highly desirable by buyers because they know it can pay for more than half their mortgage.

 Yes the structure was already there. But that still nowhere near constitutes a price above 100k. I did most of the work myself so I can see where I saved on labor but a breakdown from the cost was 15k in materials, 11k in permits and impact fees, 2k in architect fees and the rest was in labor that I had to outsource.

Well said John M.!

 160k-300k? That's pricey! What constitutes this cost? I built my first adu converting my garage into a 488 sq feet 1bed 1 bath unit for 35k with permits. I hired subcontractors for a few things (electrical, plumbing, and drywall). And I went with durable materials for long-term. 

 Thank you might have to take you up on that!

Whats up BP community!

I have decided to build a detached ADU for my property and will getting funding from a family member as my investor/partner. With this new CA SB 13 the cost for the permit will be cheaper and will not pay impact fees (maybe some impact fees if I decide to go above 750 sq ft). I have a GC quote of 60k for a 2bed 2bath unit of 740 sq feet that will have its own private entrance, yard, and laundry. The unit will rent out for $1600-1800 (includes utlities). My investor will pay for it all and I will have it built on my property. My question is: what would be a fair split between the both of us? I will provide the property, rent it out and manage it whioe he only provides the cash and won't have any direct involvement but I feel like a 50/50 split won't be fair to him because he is dropping a lot of capital in this investment. It will take about 6 years for him to make his money back and then start seeing his returns. The goal here is for both of us to win and I don't think refinancing is a viable option to pay him back sooner due to ADUs still being fairly new to the market. What do you guys think?

 I don't plan on building ADUs in Fresno. I personally don't think it's worth it there because of the weather. Splitting utilties would be difficult and expensive if considering adding seprate meters. Plus the roi isn't too great. I'll probably take you up on the help soon when I move.

 Yes Clovis was my first option but there isn't much available for multifamily (at least on market) 

Hello everyone! I'm still a beginner in the real estate investing world. Read countless books on real estate investing and own my first sfh with an ADU. I am currently house hacking and have all my extra rooms rented out to live for free until I fullfill my 1 year occupany (ends in Dec 2019) in Santa Maria. I am moving to Fresno for school in Jan for the spring semester, but the main reason is to move further in my real estate business. Fresno appears to be more affordable than most cities and from my research thus far, returns are pretty good for mulit family homes and is filled with college students looking for places! Just want to hear opinions from experienced investors in Fresno area. I plan on getting a quadplex and live in one of the units while I go to school and house hack and repeat until I finish school. Once settled in, I plan on partnering up with my old man (experienced investor in my hometown and the person who taught me the business) and tackle our first flip since we can compete with cash buyers there.