All Forum Posts by: Gary F.

Originally posted by @Laura C.:

Hi all, this is my first post on BP (I feel a bit awkward without a profile photo, but will fix that later). I've been thinking about building a detached ADU (likely prefab, since the costs tend to be cheaper). This is for Fremont, maybe a 2br, 1 bath, 700 to 900 SQFT. I'm interested by Kent's post about trucking in one from out of state, since the costs will be cheaper, but a bit concerned about the logistics around that. Does anyone have any recommendations on companies either in state or out of state? I'm looking at one firm based out of Fairfield. Someone I know is using them and it sounds like they can handle all the logistics vs. other firms may not.

Hi, Laura.

Did you start on your ADU project?

Howzit, Matt.  Fun yeah, local kine talk. 

I'm in San Jose and have been researching ADUs too.  The lowest quotes I got start at $275sf so yours is much lower.  The upcharge here just because its the Bay Area.

To be "worth it" is almost a personal choice. For ADUs, consider the additional assessed property tax, and of course the initial upfront and holding costs. It may be better to rent out vs flipping for ROI. I'm not sure if the ADU would give instant equity above the initial capital investment. In this current rental market, you may have positive cash flow.

With the numbers you posted, to flip it looks like you're coming out with possible ROI. If you're in Irvine, I understand its a buying frenzy, even new construction townhomes with Mello Roos are being swallowed up. Crazy.

Yeah, either place just doesn't seem like a good investment.

Anyone?

Being that the Bay Area has many agents and there’s low inventory is this a bad time to become an agent? Or is there necessarily a good time to become one? I’m thinking of becoming an agent mostly for investing purposes (networking , MLS access, education) and for occasional sales.

I read that in Thailand foreign born folks aren’t allowed to own land by national law. But for condos it might not apply being that you’re only purchasing a unit not land. Someone who invests there could chime in maybe. For the Philippines I don’t know if they have such laws. The thing with both these countries is there’s so much corruption that I find it hard to trust what’s truth on paper and with the language barrier making it even more challenging. Again maybe some investors in these countries can share their experiences.

I’m playing with the idea of buying for cash flow and for occasional vacation use in either of these countries. I saw (online and YouTube) a couple very nice developments in Cebu (Mactan Newton) and Manila. I have no idea of the real estate climate there. I’ve visited Thailand years ago but not the Philippines. Any investors have good luck there?

Im almost in the same scenario. The ADU gives a very good ROI with the high rents and you might have instant equity. But for me, the fact that we can't rent out both units nearly kills it as I may want to move in the near future. I've heard that law may change though I've not heard any updates yet. I think its a silly law. The whole point of encouraging ADUs is to ease the housing crunch. But with laws like that the govt. is acting as an HOA.

Like everybody else said, the HOA is what makes condos a higher risk than MFs and even SFRs. It can go up at anytime and you either pay it out or exit out. But of course they're cheaper at the initial price to get into it.

For flips they can be easier as you only have to worry about the interior rehabbing. But again, you'll have to check with the HOA because they all have their own unique rules, like only using noisy power tools at certain times/days.

Hi, Shao. Thanks for the reply. Yes, my PT will go up but I'm not sure how much since I'm not adding sf, just converting. I have owned the property 18 years.  Do you mean they may reassess the whole property?  

Good to know about the formal room not being so popular. Do new homes even have the living room anymore?