Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Felix Shi

Felix Shi has started 2 posts and replied 6 times.

Hello,

I'm seeking guidance for a house project in San Jose, located in a city conservation area with historic inventory. The challenge arises as the city permits only true divided lite windows, leading to a cost of $40k for 4 custom-built wood arch windows to replace rotted ones facing the street. However, I've observed other houses in the area without original windows, some even rebuilt with new windows using a single-family permit. I'm puzzled by the apparent discrepancy in regulations. I also see a neighbor got code enforcement investigation from city inspector and applied a sfh- historic administrative to rectify their windows.

Can applying for a single-family permit offer a workaround from historic planning for window replacement? Any insights or experiences would be greatly appreciated. Thanks.

Post: Spent 250K to add an ADU in South Bay or buy a condo in East Bay in 2024

Felix ShiPosted
  • New to Real Estate
  • Posts 6
  • Votes 2
Quote from @Chris Miller:

@Felix Shi

I think it depends a lot on what you could rent the ADU for? Compare that cash flow to whatever you'd be buying as an investment property. If the ADU is in a high rent area, then maybe. I'm currently adding 3 ADU's in Santa Monica and spending $500k or so but rents from those units should bring in $10k monthly soo kind of a no brainer for me to go ahead and do.

Do you know if your local appraiser will give 500k to the 3 ADUs?

Post: Spent 250K to add an ADU in South Bay or buy a condo in East Bay in 2024

Felix ShiPosted
  • New to Real Estate
  • Posts 6
  • Votes 2
Quote from @Shiwei Qu:

I actually agree with @Rick Albert that appraisers usually don't giving enough dollar for what you spent. I personally asked one top appraiser in Bay area and she said the same thing because there is not enough comp to appraise ADU value. I would not go to ADU route since backyard is very important in bay area - land is valuable, garage too. You don't want to narrow your buyer pool when you sell your house in future just because they might don't want the ADU but decent size backyard is always good and has its potential.

If I were you, I would rather try to find deal in hayward/union city/san leandro single family house. If you are ok with 2 hours driving, try Sacramento metro.


 What's your thought on addition? Is 2000sqft 4b3.5b reasonable on a 6400 sqft lot?

Post: Spent 250K to add an ADU in South Bay or buy a condo in East Bay in 2024

Felix ShiPosted
  • New to Real Estate
  • Posts 6
  • Votes 2
Quote from @Wilson Lau:

I would say an ADU in San Jose would probably offer you a better return than a condo. Most condos don't appreciate much (especially in today's market), and I am seeing HOA fees continue to rise year after year.

In terms of value added, it costs about $400/sq ft for a standard ADU here in San Jose, so it would be worth it only if you are in one of the highly sought-after neighborhoods.

 @Wilson Lau Great insights. My current garage is not in a good shape so I'm debating btw fix the garage or convert the garage to an ADU. I have a 1500 sqft house on a 6300 sqft lot at 95126.
Does the garage add more value to the house or a 2B1B ADU? 

Post: Spent 250K to add an ADU in South Bay or buy a condo in East Bay in 2024

Felix ShiPosted
  • New to Real Estate
  • Posts 6
  • Votes 2

@Rick Albert

Aside from appraiser, how much does ADU add value to the property when you sell it? Do you see it more than the built cost?

Thanks

Post: Spent 250K to add an ADU in South Bay or buy a condo in East Bay in 2024

Felix ShiPosted
  • New to Real Estate
  • Posts 6
  • Votes 2

Hello everyone,

I'm a newcomer to real estate investing and this forum. I'm seeking insights into the pros and cons of investing in Accessory Dwelling Units (ADU) in south bay versus buying a condo in east bay, particularly in terms of appreciation and cash flow. My current understanding is that ADUs may offer better cash flow, although they may not necessarily provide superior appreciation compared to condo investments, considering the anticipated decline in interest rates over the next couple of years.

Thank you for your expertise and guidance!