All Forum Posts by: Matthew Forrest

@Peter Mai

I took a lot photos, but I don't have access to everything right now. I never really thought about it, but I should do a write-up or something of what I did and post it! Thanks for the idea. Here are a few photos for now. 

@John A Murray 

Good idea on separating out the costs! I'll include that in my write up.

@Oleg Enik

Welcome! From the interactions I have had with the people at Buckingham I think that will be a great place to start out. It's awesome that you have come so far in just 20 years and I can't imagine how difficult it must have been to assimilate knowing zero English. Good luck!

@Cody Quirarte

In my opinion, if it's not written down explicitly it's open to interpretation. Some cities state "the applicant must provide verification of the walking distance (in feet) between the residence and public transit stop at the time of application," while others says "[on-site parking not required if] within 1/2 mile of transit or if sufficient curb space exists." In general I would recommend speaking with the planning department for whichever city you want to build the ADU in to get confirmation. For me, the stipulation was 1/2 mile radius, but I believe having a good relationship with people at the city allows things that are up to interpretation to fall in your favor.

@Eduardo Slesaransky

I don't have flipping experience, but I know that market intimately. I would love to take a look at the deal and just add my two cents!

 I really like everything you said and for the most part agree. I'm doing exactly what you mentioned about buying, adding ADUs and either waiting or "flipping" them to build comps. Why only the half thought? What's making you hesitate from going for it?

@Brandon Carlson

Thanks! Honestly it was a brutal process. It took way longer than it should have, but that was a combination of in-experience of my part, contractors overstating their experience level & some NIMBYism.

At this time I agree with @John A Murray and think we should probably looking to break even or cash flow while the valuation piece works itself out. However, I met someone at a meetup that did a new build ADU and basically got market price per square for the addition to the property. This property was in Culver City so think about how much he got for a 1200 sqft new build! The property was sold after construction so I guess it was more a "flip."

@Peter Mai

Unfortunate I don't know how to get access to off-market deal in OC other than you cold calling and sending letters (that's what I am doing in Torrance), but you might want to look around the forums for a wholesaler.

If you can't find a property to purchase under market valve, you might want to take a look at lowering your post acquisition costs. I look for properties that have existing space that is underutilized and not permitted to be habitable (in-law suite, granny flat, bonus room, hobby rooms, pool house). For my specific property I took a 700 sqft "hobby room" and converted it to an ADU for ~$50,000, which is significantly less than than a new build. This lowers the amount of capital required for the property and lowers your monthly PITI payment. Good luck searching!

@Eddie Medal

From what I've seen, general contractors with ADU experience for conversion of existing space are a rare breed! Personally, I had trouble getting a good bid from contractors for my conversion because the scope was relatively small so I assume it had a significant "fixed cost" built in. I ended up doing it as an owner builder and subbed out the work myself. If you're interested in contacts for specific trades, let me know and I can set you up with some of those!

@Brandon Carlson 

I completed my ADU and rented it out in November. I'm looking at doing a refi now, but have not been able to get any confidence around its value in terms of equity in the property. I have not done an appraisal yet, but I have heard anything from $0 (because there are no comps that I know of) to 100x monthly rent. I haven't seen anyone else on BP talk about a refi post ADU. I might just go for it and be the guinea pig. Please let me know if you come across any hard data on this topic.

@Jake Malott

Welcome to the community! I hear a lot these days about investing out of state and how unreasonable prices are in California, but I love LA and see so much opportunity. Currently I am focused locally on ADUs and small to medium sized multifamily. I believe that infill development can do a lot to address the housing crisis while still being a good return for investors. In the long run I see little choice other than to eliminate single family zoning so I am interested to see what happens with SB-50.

What areas of LA (including West LA and the South Bay) do you see as the best areas for investment over the next five years?