All Forum Posts by: David Frandsen

I've stumbled into the idea of flipping a mobile home (A mobile home RV might be a better description of this one). I'm looking for feedback on the process/feasibility for those that have experience. I'm in talks with a seller in South Bay of San Diego. It is a very run down unit. 

1) How does one acquire title of a mobile home? Can a title company transact the deal? 

2) What are the transfer fees/Closing costs associated with a transaction like this? 

3) Is a value-add on an old RV feasible? (I know construction but have admittedly never worked on an RV Trailer :)

4) Red flags to look out for? (how to check for liens, back taxes, ect...) 

Thanks in advance for your help. 

You could get away with using a draftsman to consult you through the ADU process. No need to use an architect per se although they are arguably more "qualified."

What is your goal with the ADU? If you are building an attached ADU I would consider adding more square footage to get more return when you rent it out (maybe enough to do a 2 bedroom 1 bath). 210 square foot is small. If you are only converting existing living space I believe you can classify that as a Junior ADU though.

@Jason Gettler Well thought out plan. My mind is stuck on the same problem. If the ADU won't appraise how will the refi turn out? I'm curious what some experienced investors/lenders thoughts are on this.

I don't believe it matters where on the property you live if you were to purchase this property using a 1031 exchange. although I don't have personal experience with this. 

To be clear you cannot "Short Term" rent an ADU ( in California at least that is the case) .

If that is the drop to your existing residence as indicated it shouldn't be a problem. I can only tell you how it works in San Diego County with SDG&E. Maybe there is some similarity... Here is what I do: 

1) Submit a ticket online for an "upgrade to service" with SDGE. This happens after you get an ADU address from permitting. (beginning to end it takes 12 weeks)

2) Provide existing and new gas/electric loads to SDGE planner along with plans. 

3) They will walk property in 8-10 weeks from submission date. 

4) At 10-12 weeks they will provide a drawing with your new meter location and instructions for how to get it hooked up. 

Note: SDGE started requiring the meters to be grouped. So for example: If you put the new meters on your existing house you will have to trench from the meter to your new ADU to supply power. (or vice versa)

Hope this helps. 

@Vi Nguyen I heard you mention septic? How much land is there? ADU's can trigger needing larger septic tank and leach fields. This can be a problem if there is not a lot of land. There are work arounds from what I understand (ATU's) that can use much less space. But I have heard they can cost $20-40k and have annual maintenance fees in the hundreds of dollars. Something to consider.

@Vi Nguyen What city are you in? As others have said check with the building department to see what permits are completed as well as if any are in process. There are only a couple of options if the dwellings are truly permitted. Either they were permitted as Accessory Dwelling Units (ADU or JADU) or the property is zoned multifamily and they built additional dwelling units on the lot. Of course you can do an Addition on the house and add bedrooms/offices ect. and this would not count as a dwelling unit but as an expansion of the current home. The permits should be able to reveal all of that information.

@Hemant Patel I would recommend working with an architect or draftsman that is familiar with the coastal process. 

@Hemant Patel I'm not familiar with Santa Barbara but here in San Diego a detached ADU that goes through the coastal commission will add about a month to the timeline and 10-15k in added expense. I had heard that if you attach the ADU to the main house you can avoid going through coastal because it is now not considered "new construction." But I have yet to see.

@Drew Chance Thanks for sharing. Sounds like a fun project. Best of luck.