All Forum Posts by: David Jarvi

sounds like you are doing a pretty good job.  -- While I have not built from ground up, I did do a full remodel. 

I had plans drawn up by a draftsman, stamped by a structural engineer out of the area... and this caused me all sorts of pain -- mostly trying to communicate with the structural engineer.  A lot of GC's in the high desert area grew up building homes in 1980's and don't understand the building techniques needed to comply with the 2020 codes.  many of the GC's I requested to quote remodel couldn't even interpret the 
confusing plans that the structural engineer created.    

So, I guess looking back You can take the long road or the short road  (either have it's benefits)

the long road is doing it yourself  (owner builder style) and learning how to find/manage sub-contractors/inspectors, get the best price, plan revisions to get exactly what you want, etc..

the shorter road - hiring a GC with his architect who has experience in the high desert.  these guys are hard to find (but perhaps doing some 4x4 driving up pipes canyon area would yield you a few builder names) 
a lot of the better builders up in the desert don't advertise (don't need to) and have 6 month wait lists.

but the hardest part of the whole process (IMO)  will be insuring the structural engineer is willing to understand 1) your goals  and 2) san bernardino codes  3) communicate clearly throughout project

good luck!

Hey. I just closed on a 3/2 fixer upper in yucca valley and will start work next week. 

If you want to stop by and check it out send me a message.   A lot of this estimating stuff isnt that complicated especially with cosmetic-ish flips

couple of ideas

1) ADU law (every single family zoned area is now zoned duplex essentially) the entire state is now zoned MF

2) desert hot springs is growing (no pun intended) but very little rentals available there... might be worth a drive through to see for yourself

3) yucca valley is a great place to invest in multi-family - there is a NEED... but most of the inventory is old.. hasn't been much built for decades.  

4) so that leads to building!  which I think is the best strategy at this point in the game... $125-175sq ft (not including land) 

Congrats 

Subbing work out in the high desert aint for the faint of heart.  Many on bp have shared stories of high desert fixers gone sideways  

If you can find a licensed gc — in my experience they will charge 10-18% on top of the subs work.  But may get a 5-10% discount (from what you would pay retail) or more on a loyal sub they work with. (Realtors are a good starting point for finding someone) 

I havent worked with a gc all the way through a deal yet— just many many subs/handymen i unfortunately cant recomend very highly

Great post!  There is a small live playhouse in morongo valley (groves theater) — and ive thought it would be fun to write a screenplay of this scenario.  As so many of us have had almost the exact frustrating/educational experiences. But in the end fulfilling as you say

I’ve done a few remodels which required a lot of engagement with the county but building in California and general construction costs/management are the larger issue imo 

The county doesnt seem to be anti-growth or anything like that.  Just a bureacracy with 2 month timelines for this or that. 

The county also is in process developing an ordinance to govern airbnb in the high desert area so beware. Its been the wild west with yurts, tents, etc.  

San Bernardino County health department approves wells - typically through the housebuilding permit process

In my limited experience, Well Drillers will not risk a license for drilling a well - I was told well drilling prices went up 50% in the past 18 months due to high demand in farm areas in the middle of the state. - so going price  ~12,000 is now ~18,000  or something like that.

Zoning dictates “dwelling units” allowed.  Some will say 120 sq ft or under you can do whatever (not true) a lot folks seem to be testing county enforcement - seems like if you pay the transient taxes (which is auto collected by airbnb at least) youll be good.  But at any point a govt official could show up and demand to see proof of x,y,z based on the advertised pics.   

Additions/remods dont seem overly complicated.  You submit electronically and county can give rough approval times -3-4 weeks i think for room additions. 

Prices have dropped a bit in recent months so a lot more inventory it seems to choose from and prob will continue imo

Regular Lots in DHS go for 15 to 30 and all in building costs probably 125to 175 a square foot - lesser if you do/sub out anything. 

If you live in it - I would do it. you gotta live somewhere. and you will lock in a lower interest rate and the numbers get a lot better. (3.5 percent down FHA) is only ~15k and 55K could be deployed elsewhere.

that said, even if you dont live there... If you are on the get rich slowly track (depreciation/principal paydown/rent appreciation), I'd probably do it.  buying quality and holding for 5-10 yrs always seems to work out.  and I've seen that nobody lately seems to be building duplexes anymore in CA. 

If you are on the get rich quickly track, I would not do it (and would prefer to deploy that 70K towards a few cosmetic fixers flips or just simply a better deal.   kiyosaki said he advices new investors to look at 100 deals before doing their first.  (35 though seems fine to me though ;)