All Forum Posts by: Mikhail Petrenko

Hi everyone!

Please, recommend a reliable pest control company. I need treatment against ants, roaches, rats, termites, etc.

Unfortunately, I can`t proceed with SB9, because it is not owner-occupied property. There are some loopholes in Covina, Corona, and a few other Greater LA cities where you could build 2 ADUs - 1 attached up to 50% of the square footage of the main house and 1 detached.

I spoke to 1 appraiser and his opinion is:

- to do not overbuild and overspend for 600-700 sf ADU. The rent increase won`t justify the overspending.

- ADU will bring 10 times of annual rent to appraisal.

And ADUs tend to bring 50k or less than their cost to build.

I spoke with my realtor and he suggests building as many units as possible, but he is even older than me and:

- too conservative

- believes that all immigrants live in compounds, multi-generations families ratio will increase

- construction still costs a dime and nickel if you hire unlicensed guys and do owner-builders permits

- he rocks in East Bay Area and is not very familiar with LA.

Regarding conservative rents: the lot is almost 7000 sf, tons of street and off-street paved parking, but the property is located in not the best area of Covina.

Hi everyone! 

I have a few properties in the areas which allow 2 ADUs by right and without owner-occupancy requirements.

Have you had any experience building/selling a property with 2 ADUs on 1 lot?

How was the appraisal situation? How did you calculate your ARV/market value?

Thank you!

I just bought a VERY dilapidated hoarders' house in Covina for the low 300s. 

1114 sf 3/1 in basically tear-down condition. I spent over 10k on the clean-out itself. Due to extreme mold, fire, smoke, and water damage, we can`t save the roof and rafters, we needed to tear down all drywall/insulation/flooring. The city wants asbestos and LEAD tests too.

The pool equipment was stolen, it has some minor cracks.

I have the next scenarios:

1. Make a small addition to the main house (-> results in 1250 sf 3/2), do a full gut remodel and new roof framing/roof, and convert the existing 16x25 garage to a tiny 1-bedroom. My budget is 200k, ARV is 625k+, and the projected rent is 4000.

or

2. Restore the main house, convert the garage to ADU and build one more house (you can have 2 ADUs in Covina) 800 sf. My projected rent will be 6300, and it is hard to predict ARV due to the lack of comps (houses with 2 ADUs). And all neighborhood homes only 1 ADU maximum.

Also, should I keep the pool?

It will be dozens of thousands to restore it (by ballpark quotes of GCs) and only 10k to demolish it,  and it will be extra liability, but it can give (?) resale value to the house.

Thoughts? Thank you!

Hi everyone!

I bought a foreclosure property once. The assessed value was 200 000 and I bought it for 600k. A county assessor increased the value to 600k.

Here is my question.

Let`s say I am buying a property with an assessed value of 1 million for 600k.

Will a county assessor decrease/make reduction of the assessed value? Have you had such an expirience? 

Hi everyone!

My plumber wants to sell 1bd 1 ba 622 SF house in Monrovia CA (Mayflower/Foothill) as is.  The house is dilapidated but has a large 6500 SF lot (zoned as a duplex). His uncle still lives there (does not pay rent and does not want to move).
I may build 2 SFRs and remodel the existing house and use it as ADU.

It is almost impossible to find local comps (such a small house).

What would be a fair offer from an investor's standpoint for such a deal?

Good evening everyone!

We are trying to buy an old craftsman (2000 SF, 4b/2 ba, 2 stories) from an out-of-state heir. No inside access, but it was described as "a hoarding".

I spoke with one neighbor who has been inside, she told me there were

• intense odors, 
• overwhelming stockpiles of clutter, 
• animal feces, 
• bugs, 
• even rats. 

What are typical budgets to clean-out such a level of hoarding? Are there any solutions to kill odors/smell ASAP? What typical problems should we expect (rotten subfloors etc.)?

Thank you

I am discussing a deal with one semi-retired landlord. He is willing to sell over 20 rural houses.

I want to propose owner-financing.

PRO:

- almost all houses have long-term tenants in place (some stay 7-10 years)

- houses are in decent shape

- great NOI

CON:

- all houses are in different rural cities and areas, for example, two 3/1 in Ft Scott, KS, one 2/1 in Ontario, OR, 4/2 and 2/1 in Miles City, MT, two 3/2 in Bismarck, ND, etc.

- it will be a nightmare to manage all of them, find handymen etc

-----

I think I can buy them for $150k downpayment and $450k paid partially within 5 years

NOI is $71000 for 2019.

Is it worth it?

The current taxes are around 5k/year. Insurance is 750/year.

Predicted taxes for triplex are 10k/taxes and 1700/insurance.

$5,694.83 is a monthly debt service payment for 900k refi 30y mortgage. So, I would get back all my previously invested cash (500k) and return a 400k construction loan.

8k - 5.7 - 1k (ins + taxes) = 1.3k/month. 1.3k should cover Vacancy, Repairs, CapEx (as 2 units are brand new ones and 1 is just remodeled), Management

0 or almost 0 cash flow, 0 invested own money and appreciacion for triplex in East bay Area.

Good evening everyone!

I am remodeling 3 bd 1 ba in Hayward now (close to HomeDepot). Comps are around 600k ARV.

My potential profit is around 100k.

OR

I can refinance the first unit and I can build 2 more units (the property has R2 zoning - so, 1 more 3/1 and 2/1 ADU) for 400k and rent all three units out for 8k total.

I think such a triplex could cost around 1.2-1.5 Mio.

What way would you choose in the current conditions?