All Forum Posts by: Kit Elliott

Hello Eric,

Not yet, but I'm planning to do the next one in early August. I'll post in on here once I can find another venue.

Give me a call/text (phone number in bio) when you can and let's try and connect before then since we're both in Monterey.

Thanks for reaching out!

- Kit

Quote from @Theresa Harris:

So he bought three lots-the one with his home and the ones on either side.  Now he wants to half of his house-literally?  Nope, hard pass.  You'd be partners in the house and have to go on title for all three lots.  If he wanted to sell one of the other lots, that is a different story.  The city can prevent you from building a legal suite which is essentially what you'd be doing.  Buying one lot is easy to do as it will have a separate title.  See if he'd be willing to sell you one of the other lots.

The empty lots are behind his house so to build on them would challenging , but a lot better than what his current offer is of just buying the bottom half of the house. 

I'm definitely going to negotiate for buying one of the empty lots. Thanks for your advice, I'll let you know how it goes.

@Chris Seveney

 Is the house on a separate lot and you are buying a house on a different lot or is it literally attached and you are buying a fractionalized share of the property. If its the latter just walk away now and save yourself a lot of headache.

Yeah it's the same house just the bottom half is what's for sale. It does seem like a weird offer so if he doesn't agree to sell at least one of the empty lots, then I'm out.

Thanks for your input. 

Hello everyone,

I recently met a seller that has a proposition that has me a little confused. First, here are the details for the property he is trying to sell:

1) The house is a 2/2 with 1400 sqft.

2) The lot is 11,800 sqft. He bought the two parcels boarding his house many years ago because he wanted the privacy. There is a creek that runs through the back of his property.

3) He wants to sell the BOTTOM HALF of his house (1bed/1bath) for $500k and is willing to carry the loan.

4) Regarding the seller financing offer, he is open to negotiate price and interest rate.

5) The deal would be done as a joint tennancy

6) Whoever buys it from him will inherit his Prop. 13 taxes (about $300/month)

7) The buyer would share water credits with him

The attractive part of this potential deal is that he has that MASSIVE backyard. Since he is offering $500k for just a 1bed/1bath you would have to build a kitchen and living room. In addition, whoever buys it could build another house back there if they wanted to.

But what am I missing here? I know I'll have to factor in the costs of building new rooms, and there's also the fact it would be a joint tenancy, but what other factors should be considered on this?

The house is listed in a very nice neighborhood where others houses in the same neighborhood are selling for approximately $1.2million for the same bed/bath but less of a total lot size. The only problem is he does not want to sell his entire house (that would be the best outcome),

If I wanted to build it to become a nice 2/1 800 sqft home then I know it could sell in the $800k-950k range for that neighborhood.

I look forward to hearing your thoughts.

- Kit

@Hoa Nguyen How did this end up going? 

For our next meetup we will review our goals from the last meetup along with discussing the various RE investment strategies and which are the best for our area.

Hi Preeti,

Be sure to check the age of the leaching field and that it's not more than 30 years old, in which case a new one will have to be made.

If the property is near a water source, then building a new one will have some unique challenges since the city will likely have specific requirements on building new ones close to something like a river. This is based on what I've been learned in working with contractors down here in Santa Cruz County in researching potential STRs in mountain settings.

The problem I see with many of these properties is they are almost always 85+ years old and have big ticket repairs such as new roof, septic tank issues, siding replacement, and outdated floor plan.

Have you guys already determined the estimated cost of repairs for this property?