All Forum Posts by: David Maldonado

Hey Everyone,

I have been successful building ADUs in my hometown while utilizing the house hacking strategy. I built my first ADU (now known as a JADU) as an owner builder and did most of the work myself. From the cost to build it and the rent it generated, I made my initial investment back in about 16 months. Now it is like owning a property free and clear. ADUs are cash flowing machines in California if anyone didn't know. I bought and moved into my 2nd house and immediately pulled permits to build a detached 745 sq 2 bed 1 bath ADU AND an additional attached ADU on my first property (SB13 allowed 2 units on a SFH after 2020), again as an owner builder. I built both of them last year and I will be making my initial investment on both units at the end of next year. Managing 1 project was tough, but two!? I then understood the significance of hiring a licensed contractor, and why they charge what they charge is mostly justified. I learned a lot acting as my own GC and especially, saved a ton of money on labor. I realized I love building and turns out I qualify to take the California GC license exam (combination of a college degree and owner builder experience)! I recently closed on my third deal to house hack and I will be working on pulling permits for my 4th and 5th ADU after I finish renovating the house (Needs a TON of work and I'm surprised it passed VA!), but might as well make it look nice since I will be living in it)! I'm thinking ahead and I had always had an interest in investing in the Fresno area (that's where I got my BA in Business/Finance!).

I kept up with the laws pertaining to ADUs and Tiny home on wheels (THOW) over the years so I am well informed on them. Fresno is much cheaper than the area I invest in and my money can go further their while getting a pretty sweet return. Anyone have experience building THOW, getting them certified (can't remember the name of the THOW certifying agency), registered with the DMV, and then throw them on the back of one of your rentals (permitted) for cash flow? I was going to start building tiny homes anyway, but I figured if this is another avenue for THOW/ADUs, then lets make some money! I just wouldn't know where to start, who to talk to, permit process information, etc. Any guidance would be greatly appreciated! 

I am also open to talking about my ADUs if anyone is interested. I'm an ADU enthusiast!

The reason I don't want to use a construction loan is to avoid the headache and pre-approval process and extra costs associated with working with a lender, not to mention that most lenders require a licensed GC. I can avoid all of that and be in complete control of the build by using my own or private funds.

I'm still a little guy in the game, so I do as much of the work on my builds as I can to save on labor costs. Plus I built 2 of my ADUs simultaneously, in under 4 months. GCs in my area take up to 6 months for a similar build.

No, I'm planning on taking the GC license exam sometime early next year. I am aware of those limits for owner builders, but that only applies to selling a new build correct? I don't plan on selling any of my future builds. I want to BRRRR with new construction.

Has anyone had experience being an owner builder and built from the ground up on vacant land while using cash or private funds to fund the entire project, and then get a mortgage (getting all money invested back) and repeat? I'm pretty much describing the BRRRR method using new construction.

I figured, why compete with everyone else on a house that's more than likely going to need a renovation and pay above asking price? have built ADUs, all in, for $85-$95 per square foot per unit. I have done extensive research on the permitting process and all soft costs associated with predevelopment costs.

I'm looking at $40k-$60k on predevelolment costs

$100-$150 per sq ft for construction build. There is land with all utilities included in my area under 300k and 1200 sq 4 bed 2 bath single family comps in the area go for around $700k.

i want to build a 1200 sq ft single family home, 1200 sq ft ADU, and a 500 Sq ft JADU.

one of my propertys has both a jadu and adu and it appraised a little over a million (would be worth around $550k without the units).

With the numbers I've ran, its a no-brainer to go owner build, but I haven't taken on something this big. Just would like to hear anyone's experience and thoughts on this.

Thanks!

So my city will consider an ADU DIY kit build as a manufactured home. Still waiting on a response from building about the shed conversion.

Hey everyone,

has anyone tried to buy a large tuff shed or steel home kit and turn it into an ADU? There are tough sheds as big as 2 stories and 1000 sq ft. I also saw that home depot has a bungalow style 1000 sq ft steel home kit and it specifically mentions ADUs. According to the description is that they will design the unit in accordance with your local code. This can be a game changer for me because I am an owner builder and I only sub out the work for the structure. Once the structure is up, I diy the rest. I'm calling the city on Monday to ask but I'm just curious if anyone in California has tried it.

As far as construction and blueprints costs go, I can build each unit for around $140 sq ft (basic finishes) but I'm still in the process of calculating soft costs (permits, fees, school taxes, impact fees etc.). I have a contractor that I've worked with and he qualifies as a VA builder. I know that number seems low, but I also built 2 ADUS last year when prices were high, as an owner builder for $78 per square foot, all in (only subbed out the build of the structure and did the rest of the work myself.

Regardless, it will still be expensive but 40 year 4plexes go from 1-2 million depending on the size of the units.

 As in getting a Va new construction lender to loan me the funds for the build because I heard that new construction loans are difficult to get.

Hey everyone, i want to use the va new construction loan to build a quadplex with 4 bed 2 bath 1400 sq ft and a 34x24 garages per unit. I'd basically want to house hack a new build. 

i know this would be really tough to sell, but would i  increase my chances if i came up with a solid plan? I'd include

land info

if the city will allow it

all preliminary costs before the okay to actually start building

cost of construction 

length of construction 

contractor info

comps in the area by sales and income approach due to it being multifamily.

market rents comps

and basically a price for the entire project from start to finish.

I'm coming up with a plan so i can start contacting lenders....especially if my offer doesn't get accepted haha