All Forum Posts by: Ernie Espinoza

I purchased a SFR in east Oakland in 2017, The garage had been converted into an in-law unit many years ago. Is there a way for me to get the already existing ADU permitted? I do not currently rent it, I actually live in it and rent the main 3BR 2BTH house. Can anyone point me in the right direction or do I just need to tear it down and start from scratch legally?

Thanks you all for the advice.... I agree, the first thing I need to do is fix the issue. I’ll seek damages in parallel…. If I am able to get any. After reading the fine print on the inspection report, they do cover themselves prey good.

I am in need of help please. I closed escrow in mid-August 2017, but I did not move into the house till September 1. I started doing some additional work on floor and painting though the month of September and October. I am single so I had been using minimal electricity. On November 1st I had a family move into the house. Now that there were additional people in the house besides just me, more lights were being used. A week ago I started noticing lights flickering and electrical breakers going out. I contacted an electrician and he came out to look at my electrical box. First thing he said is it was a mess. The breakers are not wired correctly and the wrong breakers are being used. He also quickly noticed that the PG&E meter is being bypassed. He did not want to continue to work on the electrical box and informed me to contact my real state agent since it was a new purchase.

I did my due diligence and hired a home inspector. After re-reading through his report, and looking at the pictures he took. There is no mention of any meter bypassing or any wrong breakers.

I need to get this fixed ASAP….. am I completely liable for this fix…? Does the Inspection company or selling agent hold any liability…?  Do i need to go after the seller...?

Any advice would be greatly appreciated…. Thanks.

Berry,  

Thanks for that bit of information....  That i was not aware of.  My long term goals are to keep this property at least 10 to 15 years if not longer.  From what i am seeing/reading, this area of Oakland should appreciate nicely over the next few years.  Knowing that, what would you recommend for my property.... rent it right away or just live in it for a few years?

My applications reads;

“I, the Borrower or Co-Borrower will occupy the property within 60 days of signing the security instrument, and intend to continue to occupy for at least one year;”

My Wells Fargo Mortgage consultant and I interpret living in the in-law unit as occupying the property. I’m hoping I am in the right here….. unless someone knows something different.

i do intend on claiming the rent as income and would want to add all my expenses i am doing to get the main house ready for rental. I do want to look for my second investment in one year, so i would like to show the extra income from rent on my taxes to help my with my DTI in a year.

I just purchased my first single family 3 bedroom house that came with a non-permitted detached in-law unit in the back, typical for Oakland Ca. I am planning on living in the in-law unit since I got an owner occupied FHA loan. I am planning on living in this Oakland property for a year, then purchasing my second property as soon as I can. I am new to this so I have a few questions.

1. Are the repairs to the main house such as paint, carpet, HW floors deductible since I’m renting it?

2. Is the rental considered income…?

3. I do have home owners insurance, would I need to get an additional renters insurance…?

4. Is there anything else, good or bad that I need to be aware of in doing this? My loan officer said as long as I am living on the property which I am, I am not committing fraud. All utilities are in my name, just in case i need proof that i live on the property.

Thanks,

Ernie