All Forum Posts by: Gary F.

Here's a link to ADU information for California. It looks like I can't build one. Per these codes for Santa Clara County at least one of the units, primary or secondary (the ADU) must be owner-occupied. If I were going to live there the whole time that's ok.

Plus there's a time factor for the city to register the ADU on record before it can be occupied. An REA told me it's taking about 6 Months. That's a long time to front all those costs with no rental income coming in.

I'm out. 

http://www.hcd.ca.gov/policy-research/docs/ordinan...

Hi Adil

Yes the garage conversion does reduce value of the main home. I've been looking into an attached or detached unit in the backyard as that would add value plus the rental income. However the tax advantages usually associated with a business rental unit may not be the same as a unit not on a primary residence. I'll have to research this more. Or if someone else with more experience can chime in that would be helpful. 

Let's connect 

The laws have recently changed in your favor for ADUs. SJ is now allowing unpermitted ADUs a grace period to come into code. Check out the city website. As for the rest of the house that's a hard one. Sad when neighbors do that kind of stuff.

Anyone?

Hi Jeongmin

That's interesting for new cheaper than older. The other benefit of a newer construction is you're less likely to get hit with a special assessment since the complex common areas, roofs, and amenities are also newer. But the HOA might also be higher than the older complex.

Hi folks 

I'm finding the same thing. Everything so high priced especially with our high property tax, which is even greater on a newly purchased home or multi family. 

If you own your own home and have space for an ADU that might work out. But the ADUs typically get less than market rent. The numbers still might work out above 1% depending of course on total building costs.

I'm looking into this for my San Jose home since the codes have now been changed allowing more ADUs to be built. I'm just in the beginning stages and look forward to seeing how the numbers work out 

Hello Bay Area BP folks and others. I've been wanting to invest in real estate for awhile. To get started with a low budget I've always thought an in law unit aka ADU, would be a great way to start. My backyard though didn't meet the setback requirements per city codes. However now the State and subsequently the city, have relaxed the codes to encourage homeowners to build. Lucky thing

For those that have an ADU, please share your experiences. Are rental prices on these necessarily lower than the market?

I'm looking into building types. My side area is only 6 ft wide.  Not quite enough for a BobCat to be used. That'll add to the costs since foundation work will have to be done manually. 

Panel prefabricated homes look to be the best choice maybe. As long as they can carry them through that side yard area. 

Any other advice to share is appreciated. Mahalos 

Good advice, everyone.  Yeah, the prices seem on the high side now and going up. And certainly the drought doesn't help with the local population since it is a resort community.  The local economy is driven by the seasons.  However, in the summer it is still a very popular area. On most weekends, holiday or not, the motels are full by weeks end. 

Another way to look at it is that the weather will sooner or later improve and the ski  resorts will be busy again. Once the ski seasons are consistently at pre-drought levels, I'd assume the local economy will also. 

In the Bay Area and Tahoe, REI 4 years ago was a better buy then now. Waiting for the next "crash" could be years and seems impossible to predict when and if it will happen. Is there ever really a "good" time to buy anywhere? How can one predict or make a more educated guess?

A quick Craigslist perusal shows a few RVs for about $5k to be 20 yrs old ballpark. 

Do you have particular brand RVs you found more reliable or better maintenence-wise? Used cars are always a gamble unless you are a good mechanic or know one. 

I imagine you've set up a network of resources for used RVs, parks, and mechanics

Wow, this is very cool!

So:

1) Purchase an RV already housed/parked in an RV park?

Or do you purchase, then rent a space until you find a buyer?

Or just store the RV somewhere, like your house, until you find a buyer?

2) Obtain buyer on a rent-to-own contract. You're charging financing interest

What interest rate and what terms?

3) Buyer pays all maintenance on the RV and space rental fees

You pay nothing for maintenance, insurance, rental.  So once they sign, you only have to wait and receive payments. Then if they default you repossess the RV. 

Is this correct?'

Thanks

gary