All Forum Posts by: Dennis Maynard

You left one out...  Professionals in the business are there to help you.

You can do it, but there will be a split for it.  Obviously it's a case by case basis.  Happy to talk about it.

Nope, and I would run away as fast as possible.  Nightmare....

Yes you can keep your ADU. You just are not going to sell it as a duplex. It will be a single family with an ADU.

Lol.  Okay, unless you went through the process of getting a TTM, or did a small lot subdivide, it's technically not two separate properties.  (Semantics I know). Would it be profitable to an owner, potentially yes.  It's subjective to owner returns and what they are looking to accomplish.  Did you include the cost of the land in that equation? Cost of Acquisition?  Can you get those rents in todays market?  

Will you get a loan on the income? No.  Will you get a loan on the improvements? Yes.  Will there be a delta between the two valuations, yes.  

This was about appraisal valuations.  Cash flow, sure.  

True, but for how much longer. As I have mentioned in some of my other posts, there or over 33,000 listings on apartments.com right now. If an ADU is going to compete with an apartment, it is only a matter of time before rents fall and the values of the ADU's fall as well. Time will tell, the market is the ultimate determinant.

Right, so without being able to use the income on the loan, you don't get the full bump on loan valuation which allows for a higher loan. This means buyers have to come out of pocket more to purchase the income production, which defeats the purpose because it reduces returns. Therefore, investors will not pay more for a house with an ADU vs an income property if all other things are equal.

Bryce, I'm sorry for your loss.  That's tough.  It's really hard to say without seeing it, how much is incomplete, etc.  I would start by making a call to the LB planning department, and see if they can provide a status on the file.  Since there was a permit issued, they may have copies of the plans as well if you can't find any.  Another thing you could check is the permit to see if there is a general contractor listed on there.  If so, contact them and see if they have any knowledge of the project.

Reach out with questions, but that is where I would start, just gather info.

Yes I am aware it is based on comps. But you are allowed to include income as part of the financing of the property. So when you have income adjust, values adjust. You cannot do that with SFR loans and ADU's. Furthermore, investors look at income to create value for a property. What an investor is willing to pay for that income or benefit creates the comparable sale. So in essence, it is based on income.

They are not. Townhouses and condos are not zoned for SFR, they are not subject to the law. Furthermore, HOA's that have restrictions on additions in the CCR's are binding to the development and neighborhood. You cannot force it. Let me know if you have further questions.