All Forum Posts by: Kevin Arceo

@Jordan B. Start calling local lenders and talk to smaller credit unions and banks. You don't need to go into a branch but it doesn't hurt to build the relationship. 

A HELOC is a tool. It's not something you want to leverage for an extended amount of time. We recently used one to finish a BRRRR property. You need a lot of equity to open a HELOC. The lender we order an appraisal. We were approved for $30k but only used $15k. Because we didn't pull all the cash-out after the rehab we essentially transferred equity from one property to another, but the equity went into a good cash-flowing rental (now on fixed rate debt). We made some HELOC payments and later sold the first property and closed out the account. It's a win win. It's just an example of how to use a HELOC effectively.

Update on Appraisals for ADUs:

So I have built both an ADU and a JADU on one of my single family homes. A similar house in my neighborhood with both an ADU and a JADU sold for $1.15 million, after only being listed for a few days. Properties around my neighborhood are worth around $550,000. I was able to get a copy of the appraisal report and the comps that were used were mulit-familys (tri-plex). As of today, that house was the first and remains the only property with both an ADU and a JADU in my area.

If I were to apply for a HELOC, would that $1.15 million dollar property be the only objective comp that can be used to determine my property's value?

My client had the property build from ground up. The existing property used septic tank. The new construction had in drawing to connect to public sewage. After everything completed and my client moved in. Two years later and he had problem with the sewage and then he found out that the contractor never connect the sewage to public sewage but city inspector signed off based on the plan. City didn't compensation anything to my client except refund the city fee back to him. I guess in your situation, you pretty much have no choice to correct. Very sorry to hear that. I am also starting ADU build from ground up. Thank you for sharing and I will make sure the type of pipe to be listed on the plan. If you have any more tips or recommendation, kindly share with me. Thank you

Weird. Everyone up here uses PVC, or at least sch 35(the cheap green stuff). I only see cast where its exposed, like parking garages and such.

I briefly looked over the Oakland sewer line requirements and it seems materials other then cast iron are allowed unless the line is less that 12" below soil. Is that why they are calling it out of is it a poor code interpretation by the inspector?

I am not surprised at the mistake, mistakes happen.

What I am surprised is that they only allow American Cast iron.  It lasts long, but I expect ABS (and possibly PVC) will last longer.  I question why cast iron.

There was a building in San Diego that had all approvals, construction began, the FAA had issues with the height.  The owner/developer had to shop entire stories off of this building (I believe it was 4 stories had to be removed).  To the best of my knowledge the city did not have to pay any compensation for approving plans that were not allowed even though the owner experienced large financial loss due to the mistake.

If that type of mistake results in no compensation your, by comparison, small item is not going to get you any compensation and as another post indicated may make your life more difficult going forward on your project.

Sorry it happened, but if you proceed make sure you understand the possible consequences.

Good luck