All Forum Posts by: Kenny Simpson

In addition to our long-distance real estate investment, my husband and I want to build out an attached ADU out of our 3rd garage port. Does anyone have experience, successes, or failures they learned from, while building attached ADUs on their property, that they can share? Other questions we have for people with experience in ADU building:

• Are there banks people recommend for getting a reasonable HELOC interest rate?
• We've had a few ADU-building companies come to look at our potential ADU lot size and they've quoted us $270K-$400K which is outrageous, so our hope is that we can bring the total cost down to $100-$200K max if we do the interior design and project managing ourselves. Any tips on how to cut down costs without going the all-inclusive ADU builder route?
• How are comps for homes with ADUs? How much value have they added to your property? 
• Has it been easy to rent an ADU out in North County San Diego?
• Anything we should be aware of?

Thanks in advance!

Does anyone know the answer? I'd love to purchase a property that allows short-term rentals there but the city now requires a license for these and they are in very short supply/difficult to get.

The idea of purchasing a room at the Hard Rock Hotel seems like it may be a great way to get into the short-term rental market there and also have someone else manage all aspects the rental, which is ideal for me. But also, I see 13 rooms for sale there right now so it makes me wonder if there's something wrong with the building, a special assessment of some kind, etc. Does anyone have any intel on this?

@Kenny Simpson The latter, I believe the main bottleneck for scaling a portfolio using Conventional products stem from accruing recurring mortgage debt payments.  I'd like to know if there are ways to offset this.

Hi Kenny,

What is the best way to minimize DTI impact while maximizing unit acquisition utilizing a Conventional loan?

How many months of seasoning is required before rental income can be used to offset mortgage debt on the property when qualifying for a separate mortgage?

Looking forward to your response!

Hi Kenny,

Question about self-employment. I have been in real estate for 40 years and want to relocate out of San Diego to another state. I have social security income which helps but not by itself, and very good real estate sales income, however, even if I get licensed in the state I want to move to, they want a track record of income before a loan is funded, and will not consider my income from my real estate business here in Cali. To rent I face the same issue. Is there a way to get around this? I have a large down and would just pay cash if I could find something I like but at this time I am priced out unless I want a major fixer. I have excellent credit and no debt. Are there lenders who work with folks in this situation? I have contacted several and it is just a dead end. Help would be appreciated. Thank you.

Hi Kenny, 

I have found a potential private money lender to lend me 20% of purchase price for down payment. I plan to finance the other 80% using a commercial loan. This will be a turnkey rental. How do I offer the private money lender a security on this property as I plan to hold it long term? 

Put him as a second lien on the property? 

Any feedback is appreciated. 

Thanks in advance.