All Forum Posts by: Gabe T.

@Karla Talancon

Check out Tiner Properties. John Tiner (owner) lists his cell phone on the website and he really picks it up. They helped me renovate my investment first before putting it up for lease (helps if you’re starting out and don’t have all the contacts). And price is very reasonable, $150/mo for duplex and $100 for single home, minus half 1st months rent for placing the tenant. Professional accounting service that is always on time depositing. Good luck!

@Steve Knipping

I agree with @Dan Heuschele. I have two STRs. Management of STR is generally pretty easy when all goes well, once you have your team in place. But when things are not going well, it is usually pretty disruptive (Im also managing a couple hours away…if it's in your primary's ADU, that's a different story). A relatively small issue, when brought up by a STR guest becomes your big issue, because you now need to try to solve it, or receive a bad review. And reviews are all important, as they determine where you place on search results, and thus affect your cashflow.

Maybe if you don't care too much about reviews, and accept lower cashflow it can be less stressful. But if you're trying to offer good service and maximize your results, STR is not that easy IMO…but I'm doing it because it's worth it $$ wise.

I tried having a STR PM, and I took over after a few weeks. The amount of money it cost vs the quality of service…nobody will care more about it than yourself.

Hope this helps!

@Chen Zhou

Wow that looks amazing Chen! That should rent nicely in the Bay Area.

When it comes to ADUs I'm always interested to know how the unit is accessed and separated from the primary unit. I think that really impacts the appeal of the ADU. I can't really tell from the photos.

I've thought a lot about adding an ADU. But it keeps boiling down to: if I had $280k to spend, would I rather have an ADU or another property (or two).

For new properties, I can leverage at 25% down. For ADU, it's a gamble getting a chunk of that money back with refinance. Like others have said, best option is finding an ADU that's already built and permitted (usually separate address and electrical meter) second best option, a non permitted adu, or third an easily convertible garage would make a lot more sense than building from scratch.

@Yin Yang

Hi Yin,

I've got a great GC/interior designer that I've worked with on three projects (one bathroom addition, two full gut jobs) in Sacramento area. She is also a RE investor too, so knows what we're looking for, and how to maximize ARV for cashout etc. Her interior design skills also means I don't have to make all the decisions, helpful because I'm investing at a distance. Her crew is fast as well. I'll PM you her info.

Gabe

@Rodney Lorenzo

If you have a PM, then I would stay far away. Hopefully they don’t have your phone number. That’s what you’re hiring the PM for!

@Jacky Fan

Does anyone else think this is a nitpicking appraiser? I’ve had no significant issues with three unpermitted ADUs getting appraised and financed. Though I am investing in an area of california where there is a good amount of unpermitted work on homes. Perhaps give it another shot with a different lender/appraiser?

@Henry Murray

None of my unpermitted ADUs look shoddy or poorly done. They all look as if they were done up to code.

For my first unpermitted ADU, I specifically told my agent the situation prior to closing the deal and asked if there would be any issues. He said it would be fine, and any issues (fire, injury, etc) would be covered. I have a different insurance company on one of the properties, and they also said that it would be covered. Not sure whether anyone else has heard differently, but that's my experience so far. Fortunately haven't had to file any claims yet.

@Henry Murray

I have three properties that all have unpermitted ADUs, or second units. One is a garage conversion studio, a second is a pool house conversion, and last is a 2br/2ba garage conversion.

If your strategy is a buy and hold, I haven’t found that much benefit in getting them formally permitted. You’ll be able to get financing (haven’t had an issue yet; I once had to remove a stove and the appraiser returned to verify, and then I put it back in its place), you’ll be able to get insurance, you’ll be able to find tenants. You avoid the headache of getting it up to code/permitted. The property tax is lower with them unpermitted.

If you get it permitted, it does increase your property value significant. If you're doing BRRRR, it let's you cash out a lot more. It allows you to have a second address, potentially allows you to meter utilities separately (that's another questionable expense). But none of these are dealbreakers IMO. These properties are in demand because they cashflow in tight markets, and they are in line with the multigenerational living trend.

@Greg Todrank

I just want to point out that just because you waive the inspection contingency doesn’t mean you can’t still have an formal inspection done. And if a deal breaker is found, you can still walk away losing your earnest money, or even try to renegotiate.