All Forum Posts by: David Maldonado

@chrismason thanks for the information, I wasn't aware of that. Now I'm going to rethink my plan. Maybe just stick to 1 adu per sfh

Yes it is required and my unit has a heater. They also require a separate water heater, electrical sub panel and water lines.

Yeah I'm curious how these will sell and how it will play out in the future.

What's up guys,

I just finished building a permitted ADU (accessory dwelling unit) on my sfh. Converted my garage into a 488 sq ft 1cbed 1 bath apartment. final cost with permits was about 37k. I built most of it with my old man and only had to outsouce a few things. The cash flow is great from this unit alone and I plan on building another unit on the right side of my house. Ca just passed SB 13 along with 2 accessory bills effective Jan 1st 2020 that no longer require owner occupancy, city's can't charge impact fees, and can add up to 2 units per lot (not including the home itself). From what I read the bill allows 1 jr adu (under 500 sq ft) and 1 adu (above 500 sq ft, max 1200). Luckily where I live there is rarely ever any need for AC or heater use). Does this seem like a good market to hit in y'alls opinion? From my research, there is way more money in this at least for my area. A typical duplex goes for about 400k in my area and doesn't bring you cashflow nowhere near close to what an ADU brings. I'm just curious to see how much value the units will add to a home since this is fairly new (from a legal perspective anyway). The only drawback from this I see besides needing the cash to fund it, is for an investor who prefers to get all their cash invested back from a deal will more than likely not get everything back at the end especially if they contract everything out ( the lowest quote I got for the ADU was about 60-70k but that was just an estimate and could have been more).

Average rent for ADUs in my area:

1 bed 1 bath- $1000-$1300

2bed 1 bath- $1300-$1600

Something tells me they can go for a little bit more because I had tenants bidding for my unit within the first week of construction.

@Charlie Cameron First and foremost, thank you for your service brother. I agree with you on not wasting my GI bill on something I don't like, which is why I'm going the business administration route. Real estate has always interested me. I have read countless book on real estate and have learned everything from my father. My father achieved financial freedom through real estate and I want to do the same. So that is why I am going through the BA in Business admin with an emphasis in Real estate. But as for a Masters, I do not know which route would benefit me more.

So what go you started in REI? Yes I am still contemplating whether to rent out by the room or just the whole house. Yes you can charge more per the room especially if it comes furnished. A basic 3 bed 2 bath SFH in Clovis closer to the colleges will rent out for about $1400-$1600 depending on the condition of the house, or rent out each room furnished for about $600 but from what I have researched utilities and internet are usually included. Also it is more of a hassle to have separate rental agreements for each room and replacements for vacancies.

Thanks for the response Jeff

Can you tell me more about a degree in real estate administration? The only program I have came across were on Real estate and urban development. Right now I have enough time on my GI bill to cover up to a masters so I want to fully utilize them. Yes I want to make real estate a career, I just didn't pursue this path until now because of my lack of knowledge in real estate programs. The BA program in Fresno will qualify me to take the brokers exam, but I'm still not to sure if I want to be a broker, still need to do more research on what they do. I figured an agent would be a great start and a way to gain experience and build relationships. I wouldn't even know where to start on finding a mentor that is willing to show me the ropes. What I am looking for in a career in real estate is a position with many opportunities and pays well.

I am 100% with you on experience over a degree. I learned through the military and my father that a degree doesn't mean that someone can actually do the job. Yes coming back to college opened my eyes on how low the standards are when it comes to education. If it wasn't for these benefits, I would have took a job in a trade.

Hey everyone,

I am currently attending my first semester at Cal State LA for a BA in social work. I am switching majors to business for the Spring 2020 semester at Fresno State in Ca. The reason for the switch is that I do not agree with so far what the major entails in the Social Work field and the leftist agenda that all the professors are trying to push on their students. I just have no interest in this field like I thought I was going to have. My mistake was not fully looking into the program and I also had no idea there were business programs with an emphasis in Real estate. I have applied for a BA in business administration with an emphasis in real estate and urban development at Fresno state. All I can think about in class and all day is real estate so I figured that this degree option is for me. What I want to know is: is it worth it in y'all s opinion? I know that I can learn everything by reading and through experience (which I have thus far) but I have a GI bill that I want to utilize and save as much of the BAH as I can to fund my next deal so falling into student debt is not a possibility. I currently have 1 SFH rental and I am currently converting my garage into a permitted ADU. My plan is to buy my 2nd home in Fresno when I transfer with a 2nd VA loan and House hack and also convert the garage into an ADU and live in it (Ill live for free that way). I also plan on starting to get my real estate license as soon as construction of my ADU is complete. Any thoughts?

Hello everyone! 

My name is David and I am a Navy Veteran that is in the beginner stages of real estate investing. I live in Santa Maria California and I am transferring to Cal State LA this August and am looking to meet up with other investors and potentially have a mentor-ship relationship with one. I house hacked my first home with the VA Loan and am currently living for free and plan on fully renting out my home when I leave to LA. I also have an ADU conversion (with permits) in the works and plan on saving most of my gi bill housing allowance for another unit. I hope to meet up with like-minded individuals and help each other become successful (or bring more success for the already successful!).

Thanks Lauren! If you get the chance to house hack I highly recommend trying it out!

what's up everyone my name is David and I'm from Santa Maria California. I served 4 years in the United States Navy and I am just starting out on my road to financial freedom through the brrrr method! I bought my first propety with a VA loan, house hacked, and am now renting out the empty rooms and living for free! I am currently waiting on my permit approval for an ADU for extra income! Looking for a mentor (preferably local) to take me on as their apprentice and maybe someday as a potential partner. Looking forward on hearing about everyone's successes!

Investment Info:

Single-family residence other investment.

Purchase price: $366,000
Cash invested: $1

2 story single family home with 3 beds and 2.5 baths. 1600 square feet and close to 7000 square foot lot. In progress of building a 2 bed 1 bath ADU for extra income!

What made you interested in investing in this type of deal?

The home already had tenants renting for over 2 years and offered to continue renting my home. I pretty much pocketed first month's rent. It had a huge back yard and has potential for an ADU for extra income.

How did you find this deal and how did you negotiate it?

Came across it on Zillow.

How did you finance this deal?

Used a loan with no money down