All Forum Posts by: David Sisson

That's hilarious. If that was true, I couldn't say Amazon, Apple, Microsoft, Ford, Bigger Pockets. LOL LOL LOL. 

I think there is a market for it, niche or otherwise. I don't believe they are investments, unless they are tied to land. I do believe they are not for everyone. 

Option 1: a 400 square foot 'tiny home'. Needs to be on wheels to avoid zoning requirements. This makes it difficult to site it, and therefore it's a RV or a mobile home. This means it'll lose value over time. Still could be an investment, if you did a mobile home park just for these tiny homes. Still could be an investment if you were able to place it on a permanent foundation and attach it to water, sewer, electrical. It does fulfill a need, because it does provide a place for people to live. In terms of this website, I don't think many people here would be interested, because we are all about investment. 

Option 2: a 600 square foot home placed on a site, on a foundation, connected to water, sewer, electrical, gas, etc. It's an investment. It'd "cost" more to build in the first place, mainly because of the cost of land and the cost of the utilities. The cost of the home would be about the same. Maybe the foundation would cost more. This is an actual investment, because it's real estate. It may or may not be allowed by zoning, because of it's small size. 

They are mobile homes, just better looking. Honestly, develop a mobile home community that's just for tiny homes. IMHO, tiny homes have the same challenges as RV's or mobile homes. 

The biggest issues:

1) Zoning

2) They lose value because they aren't attached to land

3) They don't have permanent plumbing or electrical unless they are attached to land

Your best bet:

1) Develop a tiny house community / park

2) Work to change your local ordinance to be more accepting of tiny homes

3) Some other idea that at least solves the water/sewer/electrical problem. 

I had a similar situation. I did a "cash for keys" with the tenant (essentially, guaranteed her full security deposit back, if she'd leave early). I had her sign a waiver / agreement to end the lease early. PM me and I'll see if I can dig up what she signed. I don't think it was a big deal. 

Honestly, I don't think this is very serious. It does indicate movement, but all buildings move. 

In my experience, if you rehab, you'll always get minor cracking a year or so later. This is because:

1) you often move walls around, which changes the load path. This means that things will re-settle eventually, causing minor cracks.

2) You install new drywall, or patch old plaster, etc. Some of these locations will move and settle too. 

3) If you remove old plaster, and install new drywall, you'll change the amount of load on the building, This can change the settling. If you put new drywall over the old plaster, the walls become heavier, and again, the load changes. 

4) These cracks will often happen near doors and windows, because these are the weak spots in the walls. 

Patch and paint the cracks, you should be fine. 

Welcome to both of you! 

I can't answer your legal question.

But I have dealt with roots before. You:

1) Get the line snaked, with the big root cutting saw

2) Put copper poison down the drain, this will kill off the roots

3) Repeat the poison every 6ish months

4) If the roots come back, either repeat the snaking, or get ready to replace your sewer line

5) If the line is broken or collapsed, then you'll need to replace or repair it regardless. 

You would be at the mercy of the local building dept. A couple of scenarios I can imagine:

1) Building dept discovers you have illegal units and makes you remove them.

2) Your insurance company discovers you have illegal units and doesn't cover you

3) Your tenants discover that they are living in an illegal unit and refuse to pay the rent.

4) Etc. 

Clearly  they are making their money on the 6-9% charge to the homeowner. I mean, you make an offer at 50% below retail, then back charge another 6-9%, do a lick-n-stick upgrade and sell at 25% below retail, winning. 

DBA= Doing Business As = the name you call your business.

Get a business account, otherwise you can’t deposit checks written out to the business. Some banks have free business checking, so call around