All Forum Posts by: Gabriel Rodriguez

Regarding how an ADU will impact a house's selling price, if a home already had a finished detached garage meeting the requirements for an ADU, is it worth the money (permits plus any other minor changes necessary to bring it up to code) to get it officially designated as an ADU?

In other words, is it adding any additional value to it's selling price (not it's additional value as a rental as that makes sense in that you can rent the ADU separately) above that which you could already get just by showing and listing the finished detached garage?

 Thank you for the encouragement and advice. I will definitely look into connecting with some local investors. I think I had resisted doing this to this point since my goal is to invest out-of-state. However, I'm sure there are other investors investing long distance who are located here in San Diego.

I've followed many of your posts here on BP, and I've heard you on the BP podcast multiple times. The fact that you are so actively engaged in helping other investors and the way you reached out to clients even when they posted grievances on BP was one of the reasons I made the decision to invest with REI nation, so thanks for everything you do.

@Anish Tolia

Like I said up front, my primary goal was just to get started. I know myself, and I definitely think I am prone to getting stuck in the “analysis paralysis”, so a low risk option like this was a way of getting started and not getting stuck.

I have a W2 job that pays well, and most of my investments are in the stock market. With stocks I can expect about 8% annual returns or so. On this property, even with modest numbers, I calculated a cap rate of 5.2%. Along with that, I am still leveraged so I am having my mortgage paid down by the tenants which adds to my return. Appreciation while I expect to be modest, I figure can probably be expected to keep up with inflation over the long-term. Therefore, overall my expected returns on this deal are pretty similar to what I could expect with stocks. My goal is financial independence. The truth is I can expect to be fully financially independent within 10 years even without real estate investment.

I like the combination of investment and business that real estate investment represents, and I would like it to be part of my financial independence plan. Additionally, real estate returns are biased in terms of the "dividends" (i.e. rent) rather than capital appreciation like in stocks. This means I don't have to spend my principle whenever I do start relying on my investment returns to live. I see my long term plan of having a modest portfolio in the range of 15-20 single family homes or possibly small multifamily properties and eventually paying them off. I realize that this will not maximize my ROI, but maximum ROI is not my goal.

However, I see my next step is by starting to do some active investing. Hopefully as I learn I will start being able to identify better deals and force higher returns. Because I have a good job that I enjoy I’m not in any hurry to scale quickly. I’m happy with a slowly growing portfolio that I can manage the risk on.

@Ben Saad

The Turnkey property was purchased while I’ve lived in San Diego. However, I lived in Memphis many years ago, and I still have family and friends in the area.

@AJ Singh

Thanks. I’m still educating myself and saving up money. I figure even if my first “solo” deal is mediocre I’ll hopefully learn a lot.

@Douglas Tucker

Honestly I didn't. I was looking for a low risk investment. REI nation kept coming up as one of the largest turnkey companies and the reviews seemed very consistent. They had a pretty immaculate reputation as far as customer service and providing a passive investment. The returns were on the lower end, but I knew that going in. In truth I probably should have looked into more companies and compared them, but at the time I just wanted to get started.

@Joseph Crunkilton

Thank you for the feedback.

I think for my next property I’m going to try doing it without a turnkey provider. I’d like to “learn by doing” since I’ve spent a lot of time reading and educating myself.

@Twana Rasoul

Thank you. I think my next step will be to branch out without a turnkey company.

@Dmitriy Fomichenko

Thank you.

@Bryant To

Thank you.

I went with Dallas with my second property because it was one of the markets my turnkey company works in (REI Nation). Since it was my second property with them and my first property went smoothly I felt comfortable going into one of their other markets.