All Forum Posts by: Max Fefer

I'm working on an SB-9 lot split project at my house in Richmond (East Bay). I just submitted a conceptual plan to the City and they agreed to do a feasibility analysis to see if SB-9 will work for my parcel. I may have to get a variance for the existing dwelling unit's parking requirement, but I believe I meet all the SB-9 requirements. They told me they have a few SB-9 applications in process and expect it to take 3-4 months (ADUs they're deciding within 30 days). If a variance is needed, they're estimating 3-6 months, up to a year potentially. I'll be happy to share my experience.

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Quote from @Mariana Lopez:

Hello Max,

I am also looking into renofi as an option to finance two ADUs. Did you end up trying them out?

thank you!

Hi Mariana,

I haven't tried them out yet since I'm still in the feasibility stage of my project planning. I had a good chat with their staff answering my questions, so they're certainly worth exploring. They've changed their loan products since I originally looked a few months ago. They now offer up to $500k 20-year home equity loan through US Alliance Financial. The qualifying information isn't on the website, but the calculator seems to include the basic qualifications in the backend.

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Quote from @Kevin Romines:

Renofi is not the actual lender, they are basically a broker, which is not a bad thing so long as they have a program that can work for you. You are correct that a typical HELOC or other loan, will not take into account the ARV or after repair value. They will only go on what value is today. So if they have a program that will consider ARV and you need the additional value to get the loan needed, then yes, that is good program to consider.

You also need to consider what your exit from that loan might look like. Meaning, do you want a higher interest rate 2nd hanging around for years to come, if so, no worries. If not, you will need to do a cash out refinance to consolidate your existing 1st and 2nd into a new lower first mortgage. Timing of doing that cash out refinance will be important to you to get the best rates at that time. So with current economic conditions (rates are elevated and going higher) you may need to wait for 1-3 years to catch rates at a better point. So something to be prepared for.

I hope this helps?

Thanks, Kevin! Yes these are all considerations I'm thinking about :).

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Thanks all!

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Oakland, California

Does anyone have insights on what is a reasonable range for building costs these days? I've gotten a wide range from the various designers and architects I've talked to. Some have quoted around $400/square foot while an ADU designer quoted $850/square foot. I'm looking at a range of building possibilities (670 square foot ADU to 1300 square foot single family home) and I need a reasonable source of building cost information. Thanks in advance!

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Oakland, California

Hi all,

New to the BiggerPockets community here! I am looking at potentially building an ADU on my property. While I was exploring HELOCs, cash-out refinance, private lending, hard money loans, etc., RenoFi came up as an option. It's an interesting option for HELOCs and cash-out refinancing for building an ADU where their lending partners consider the future loan-to-value (LTV) of the property after building the ADU. Does anyone have experience with RenoFi? Being able to use the future value after property improvements is appealing.

https://www.renofi.com/

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All Forum Posts by: Max Fefer

Max Fefer has started 2 posts and replied 6 times.

Post: SB9 for property in California

Post: Experience with RenoFI?

Post: Experience with RenoFI?

Post: Building Costs - Bay Area, CA

Post: Building Costs - Bay Area, CA

Post: Experience with RenoFI?