All Forum Posts by: Jeffrey Suarez

I reached out to my lender US bank about the potential ADU build, and they are doing research on this.

Does any one have documentation that supports allowing this under a fannie mae conventional primary residence loan? 

I already put a job cost together for this. I build for a living, just haven't done an ADU yet, but shouldn't be much different than what I already do.
  Materials came in around $11k. 10% overage so basically 12%. (lower if I substitute some finishes, polished concrete floor instead of lvt then I can save another $1k)
Permits I only need a building/plan permit est. $3500, and fire dept for $700.  Drain I can keep since I am within the 3 toilets per drain rule here. 
The variable here is if water dept. lets me use the same water meter. If not then it could be $2500-3500 for a bigger one. 
No gas since I only am building an efficiency kitchen. 
This garage is already permited with its own electrical panel, drywall & windows in it.
The majority of the project is already done. Frame in rollup doors, interior walls, plumbing. My city is extremely relaxed for permitting, I don't need any of the other impact inspections since I'm under a certain square footage. 

Last year a neighbor here had to permit an unpermitted already built adu. He just paid $5k in fees & penalties. 


I'm at $16,200 here. Some permits may sneak in, but to say $10k more of permitting is excessive. This isn't the Bay area or coastal SoCal. 
 

Thank you Kenny. 
Yes, I am remarried, so 500k. Even If I have the rental can I claim Primary on my home? 

Not looking to refi(2.85% right now it would be dumb to change this) but am looking at a home equity or HELOC to fund the ADU build. I already brought it up to my lender and am waiting for an email response back on this.

Drawings I have under control, I do a lot of commercial construction, and design is in my scope of job title. I am familiar with all current codes. I have a callback with the city today. 

Arizona we love, We want to move there full time once the kids are grown up. 

Looking at converting our detached 3-car garage into a 2-bedroom standalone adu home.  Current 5 bedroom home has its own 2 car garage & carport. 

Bought my home this way with 3 car garage already permitted. 

I am looking to move out of my current home, and rent in orange county.  The idea being that I can either rent the adu or the main home. Keep one of the homes for my personal use when I do come visit and use the rental income to help fund my new place. I work 10 miles from my current home. 

I am potentially making this move to be closer to my kids school(shared custody) and I want to spend more time with them. I currently have them 50% of the time, but am getting pushback from them not wanting to come over as much. They are teens, so this move would only be until they graduate from High school. I love my current home and don't want to sell it.I want to be able to come back to it in a few years. 

From a personal standpoint I spend more time with my teenage children, which has no value on it,....only gray hairs and the joy of watching them become young adults.

I have a vacation home in Arizona(vacation home loan) that I rent out via Airbnb & VRBO and go there about 1 weekend a month. I am already familiar with Landlord duties and the time vampire it is.  With this move I would potentially be travelling between 3 homes, with the wife and kids mainly being where we move to (Orange County). 

 1.  I am looking at this from a Tax standpoint that "if" I sell in a few years I can still claim that I lived there, to claim the 500k profit tax free, or the mortgage deduction. Can I still claim this in my scenario?. 

2. Reached out to my lender USbank to ask if there are any issues with this. I last refi'd about 16 months ago.This is my primary residence.  I did let them know I would still be living part time on the property, and only renting part of the property. I know they are the strictest lender on the planet. Waiting to hear back about what they say.   Any advice here?

3. I am a carpenter by trade, and am CAD savy. I can do drawings myself ,....so the adu build would be a DIY very cost effective. Building is already there, built 20 years ago so its still very up to code as a structure and has its own permited electrical 100 amp panel.  Only interior walls would really need to be built along with plumbing. Permits would be the most expensive.  
 I could probably do this adu for $15-20k with a potential return of $1500 month rent, or rent the main home for $3000+ . This would be a wash if I were to rent a home where I move. Since I work close to this property I could dedicate 1 weekend a month to attend to slumlord duties.  Any advice from anyone with a duplex? Does this lower the rental value? 

From a monetary standpoint I am looking to not increase my tax burden.

I currently operate the arizona vacation property at a loss, could I use this to offset gains on my Riverside home?

Any advice from either a Tax standpoint, Landlord standpoint, or any other general advice?