All Forum Posts by: Jay Johal

I know there are quite a few on here watching/following this thread and it is time for an update (11/12/19). 

I started 2 months ago, it took 1 month to get plans going, but then another month for all the Structural Engineering, Title 24 Calcs, and some other paperwork to be put together.

We eventually now have submitted to the City as of 10/29/19. (I am PRAYING it will be approved before the end of 2019 but realistically late January of 2020).

I have attached the latest plans for your guys review and commentary; constructive criticism welcomed.

PLANS: Shortened Submitted Plans on Google Drive (the original document is > 24 pages long and has some personal information on it)

So far I have paid: 

So a total of ~17K and I am still estimating another 50K+ in just miscellaneous permitting fees and extra unexpected soft costs.

Update on Financing Options: My financing will come through a Construction Loan Via HomeBridge they are offering a 7/1 ARM (Interest only during construction) and we are looking at a rate of in the high 3% for an amount of probably 1.2-1.3 million. (They will take over the existing mortgage and become primary on the residence). I know construction loans are not ideal in terms of time efficiency and the headaches associated with them, but I could not beat this rate/price. Also the loan will automatically convert for a 30 year fixed at time of completion of the 2 units. I am only getting this loan as I am expecting the property to appraise for > 1.4 million.

Next Steps: I am super excited for this project to shape. So while I wait for the City and go back and forth with them on getting the plans approved, I've got my next set of steps in sight. 

1) Try to get comps of properties recently sold in the Area

2) Use said comps to justify a "Future Value Appraisal" by the Appraiser; I need the property to appraise > 1.4 mil

3) Obtain Bids from Contractors and select one (really nervous about this)

4) Close on the Loan and start interest payments while waiting for city approval. 

5) Find partners or more money to close on similar properties and start the process over again. =)

Hey There! Welcome

1) San Diego has multiple different niches. You should try to identify what market you want to get into first, college rentals, vacation rentals, young professionals, familys, military, latino areas, asian areas, section 8, la jolla upscale. Based on who you want to serve, you can then identify the neighborhoods you want. 

2) There are plenty but you will have to educate them on exactly what you want. I suggest the real estate networking events like @Jason Graves said. 

3) I haven't tried it so I don't know. You will now be competing with iBuyers as well. 

4) See Number 1, identify your customer first and work backwards. You'll easily see then what neighborhood(s) would be best for you to focus on

5) People invest out of state all of the time, it is just a matter of comfort level and what you are hoping to achieve. You may have a leg up in the Maine market if you have boots on the ground there. People have different opinions on this but in the end, you have to do your DUE DILIGENCE. 

Build now otherwise you'll fall behind. There is a huge shortage of units and as years go by you'll continue to lose income you could have been generated from the get go. 

You can put a Duplex and ADU together. I went down to City Planning Department to confirm this and my architect as done it.

The plans are about to be submitted to structural engineering later this week once i get some more feedback. 

The new builds for the Companion unit/ADU are going to be 2' and 2'6" aware from my neighbors fences. This was done to allow a construction crew work along the edges of my property to build this unit. If I could have it my way, it would be literally on the property line but unfortunately I couldn't. The area of North Park in San Diego is very dense and houses are almost literally stacked on top of one another.

Parking is more lax where I live because I fall within the 1/2 mile transit priority. I don't need parking for the Companion Unit just the second dwelling unit for the duplex. 

Hey Guys, 

I've taken the first steps into getting a drafter who's investor friendly and came highly recommended to take my primary residence and turn it into a Duplex + ADU (companion unit). My short term goal is to learn about development, zoning, and construction processes while building a 3 door rental property.

I have the first set of plans and was wondering if people could take a look and provide some feedback on them. I am located in San Diego, specifically North Park, in a multi-family zone. 

Google Drive PDF plans

More specifics on the project. 

Existing house structure is 1500 sq ft and will stand as is, no construction. 3bed 3bath Tandem parking (2 spots) and could rent for 3.5K+

Second Detached dwelling unit will be 1200 sq ft. 3Bed 2bath Tandem parking (2 spots) and conservative rent estimate is 3k

ADU/Companion Unit Detached will be 900 sq ft. 2bed 1.5bath (street parking) and conservative rent estimate 2k

My soft costs are expected to be 50-70K. My Hard costs for 2100 sq ft with need to replace main water line running into the street will be 300-350K.

I am hoping to take these plans to structural engineering soon and then submitting to the City of San Diego by first week of October. 

@Clint Harris

Hey Clint, love the post and discussions here. 

Can you break down the apps and websites you are using now to crush it. Like which cellphone apps, what sites are your rentals listed on, how do you manage all of them? Maybe even include the types of door locks, automation, etc you use to run your business. 

Hey Austin, Welcome. 

I am also from SD. Just wanted to say, if you haven't started investing yet look into building in your own back yard. San diego is hot for the companion units and there's a lot of info out there and may be you first best move to get started. 

I've walked several job sites now in SD but never done the actually gut myself. Most of these were in the SDSU area with college rentals.  

was the original home properly partitioned into 4 separate units with meters, kitchens, etc?

but from the sounds of it a complete gut job on a home that big in SD is easy 150K. If you start putting in custom or higher end finishes then 200K. also have an emergency fund for those unexpected findings.