All Forum Posts by: Olivier S.

Hi there,

I am trying to assess what would be the added value brought by adding an ADU to my property.

Right now I am getting quotes between $300-375/sqft to build a roughly 450 sqft 1bed/1bath pool-house on my property in 78759.

The home itself appraises for around $500/sqft based on recent sales comps. 

I have asked one realtor who told me that based on current market, I should theoretically be able to value those extra 450 sqft at full price (ie. $500/sqft). 

I also found one recently sold listing near by who was adding the sqftage of the ADU in to the total property sqft and bed/bath count.

Any experience realtor / appraiser / investor in this forum who would be able to confirm this ?

Thanks for your help

Hi @Monty Panm, I am curious aout the rental price for your 4 BR, what are you going to ask ?

Thanks

Thank you guys for the guidances.

Hi guys,

I am originally from France where I own two rentals.

My family and I moved to Austin two years ago and I am trying to look at investment opportunities in the area, mostly multiunits.

Property taxes are putting a big toll in the yield but I am curious about the maintenance. 

I did ask the books of a fourplex (4*850 usd, 2/2 units)  I was interested in to and I see like 3,500 USD per year of "getting ready" costs.

Is that what you guys can confirm as average maintenance costs, roughly a month of rent ?

Thanks

Hi all,

I am trying to find a way to avoid a 25% downpayment on 2-3-4 units.

If I am correct the downpayment can be lowered to 5% if one of the unit is owner occupied. What is the definition of this ?

We will remodel our home this summer, the remodeling is expected to last for 3 to 5 months. In the meantime we were aiming at renting something. 

What about buying a 2/3/4 plex as an owner occupied to get the possibility of a 5% downpayment, live in it for 3 to 5 months then move back to the original location after the remodeling is done ?

Would this be considered as a fraud ?

I cant find any reliable info about that.

Thanks in advance for your inputs

Feedback from Austin, TX, where the local utility company, Austin Energy, gives a 0.5 USD subsidy per KWh. : 

I invested in to my own installation last year in June.

It felt like the new gold rush.

There are TONS of companies on the market because of the 30% tax incentives + subsidies.

They show you nice graphs with high IRR (min 10%) with inflated estimated power output and are making crazy margins thanks to the subsidies from the local utilities.

Make sure to challenge their assumptions and have them compete against each other to get the best price as possible. Use http://pvwatts.nrel.gov/pvwatts.php to estimate how many KWh you can produce based on your location and compare that to their business plan.

I ended up paying 3.05 USD per watt before the 30% tax and local incentives for a 4.16 KWh system. First quotes were at 4.00 USD.

The final net cost after all the incentives is 1.7 USD / watt and based on the first 9 months I expect a yearly yield of ~8%.
Still an ok investment and at least I am now a bit greener than before !

Interesting : I was having the same thoughts a couple of days ago.

A used travel trailer (say 2013), 6 sleeps goes for ~15k on the market. Not sure if used campers can be financed or if we are only talking new units. If so this is less interestng as depreciation seems to be huge.

I see the night rental is around 100/120 USD where I live, most of the time with 3 nights min.

Assuming it is rented once every other weekend this is ~8k gross.

Deduct maintenance, insurance and storage, that would still ,ake it interseting, especially with the leverage @4% !

I have no idea what is the maintenance costs on those vehicules, nor if they turn to junk after 3 years of rental.

The ideal would be to find a company that stores, do the maintenance and rents the RV for you, against like ~30% of the profit.

@Sara Peak, are you still looking ? Any thoughts on the above ?