All Forum Posts by: Michael Ramos

Hello,

My friends and I are real estate investors. We have a group of about 10 of us and we meet once a month and go over different real estate topics. We are looking for an investor friendly CPA in LA County/ San Bernardino county area who is in need on new clients. We are looking to gain knowledge on how to optimize tax strategies for our portfolios and maybe even someone who has experience with cost segregation. Hope to hear from you soon thank you. 

I am a new investor who is working on my first property. I am currently converting my garage into a 400 sqft ADU, should be completed within a month. During the process I have been doing some reading and learning about taxes and depreciation. I stumbled across the topic of cost segregation. Sounds beneficial. After a couple google searches I am seeing that the survey costs about $10k which may not make it worth it in my case. Anyone have any experience with these cost segregations? Thanks.

I don't believe that is true. The method I am trying to execute would be to use HELOC based on current equity to pay for ADU. Once ADU is complete refi out of the HELOC into a new 30 year fixed based upon the new value of the home. This of course all relies on capturing enough of that added value once the ADU is complete and keeping cost of ADU build under budget.

Yea I may have some trouble getting the added value. My buddy is doing his ADU currently and his is costing 55K. I am hoping to do mine for about the same. If this is the case I think I will be able to capture that in added value. I have about 70% of that saved up in cash so now I might be thinking to use more cash to pay for the ADU to help keep my HELOC debt low. As far as refi with a HELOC you are able to do it. My creditor stated the only penalty for closing the account early was a $350 fee which was waived when opening the account. This is the method I got from Kol Petersons book called backdoor revolution.

Well put. I thank you for lending this vital knowledge. This will definitely help moving forward. Thank you.

Thanks I will look into that. Added value would be great but it's not going to be a make or break for me due to the cash flow it will create. Correct me if I am overlooking something being a beginner. The current plan is to house hack and save up for a bigger house for my family as a primary residence and then use cash flow and hopefully by that time greater equity to continue my portfolio. If I didn't do the adu I would only be able to move on by selling the little equity I have now and have no portfolio started. 

I am in the beginning stages of my first investment property. I am currently going through the planning of a garage conversion ADU. I live in the primary residence which is a 2 bedroom 1 bath 1000sqft. I have a HELOC in place for 45k along with some cash saved up to covert the garage into a 1 bedroom one bath ADU at just over 400sqft. Expecting 1200-1500/ month for the ADU and house hack. Current mortgage is 2,400.

My plan is to reappraise once ADU is complete and refi into a fixed rate to get out of HELOC. After doing some more reading I have seen people post about not getting much added value from ADU's due to lack of comps. I am looking for alternative exit strategies for HELOC. Thanks.

I am completely new to real estate investing. I currently own my single family residence which is a 2 and 1 with a detached garage which is approx. 400 sq ft. My intial intentions were to look for a multi family to start my portfolio. One day I came up with the idea, why not just convert my garage and make my currently property a duplex to avoid having to come up with a down for another property and seems to be more room for cash flow. "house hacking". It seems like everyone should be doing this. This is why I have speculations there maybe some drawbacks to this. If anyone has any information or experiences they would like to share it would be greatly appeciated. Thanks.