All Forum Posts by: Drew Leo

It's not part of the report but what is your risk anaylsis? Like what if those rent don't actualize ?  What is your staying power to weather the storm?  The bare bones minimum is being able to pay 6 months of mortgage + some w/ little or no rent.  This is multi-year investment and covering at least the 1st year is important.  You don't want to lose out on the investment if cash flow does arrive after XYZ months of 'bad luck'.  Towns where investment is hot like those in Ohio, the cities may delay real enforcement of penalties until a new owner/investor comes in because it's MUCH more likely the fines will be paid.  The old owner had been drained, sold at a bargain (that's why you buy) and then you get hit.  If you have sustaining power of 6 months, don't see why you wouldn't at sub $300 mortgage a month, the numbers look good.

Good to know. Will try again then. The adu company did say they are willing to help work another project if I had one for free. 
Have you worked an adu project yet?  What project would be a ideal for you?

I funded a ADU project on a property, the city found a loophole to restrict ADU to lots of 17K or more and huge set backs (property line to housing wall). Lost $3k in the initial cost. Another BP post had a guy struggling to get his house appraised to include the additional ADU sqft. Guy was attempting to sell his house. Our only what is to have an attached addition but we don't want to.

Have a triplex in Fresno California but live 4 hrs away, have 2 kids.

Looking to house hack with another triplex or fourplex by occupying 2

units. May have to cut a interior doorway to connect the 2/1 into 4/2 to

make work. Assuming the savings would be in the personal property lower

interest loan, lower maintenance costs since I can inspect &

diagnose problems, make some improvement along the way. But there are

struggles to be had (lack of space, lack of good local schools).

I quick search in my Los Angeles 85 mile region, there was nothing $800-1mil MFR, in a B+ neighborhood that came up. If it can be done in a better market, I would like to do it. Nothing around here.

Just researched my region of Los Angeles California for a house hacking scenario that my fit my family of 4 (2 kids):  $700k-$1mill multi-family, 5+ rooms, 4+ baths, about 80 mile radius  PRODUCED  = only C class neighborhoods, 3 units complex (2bd/1bath) where I would take up 2/3 of the units and it be smaller than my current house.  Lacks parking too and only 5 viable results in all of this area.    I say go for it if your market works and do it early.  

My team's interest and work is in SoCal we're 2 hrs from Bakersfield and 4 from Fresno.  The Pro Bakersfield folks are agents from Bakersfield (BF) and people who grew up in BF.  The same fans of Fresno can be invested in Fresno.  The city make ups are similar: highly dependent on public employer (govt, city works, etc) , major farm industry towns, medium salary $48K. Fresno has 80K more people and a State University which can produce more educated citizens.  BF airport 1400 acres , approx 700K passengers. Fresno 2000 acres, approx 1.1 mil. passengers and expansion 2023 aims to increase to 2mill pass.

There has been conversation of rich city dwellers leaving the metro area to go further out. The LA job market although robust falls way behind San Jose/Silicon Valley salaries.  Those in that NoCal market would push out far to the suburbs like Fresno...and that city also has rail and highways built and being built when we invested there in 2018.  There is a group of same aged friends that live in San Jose & Los Angeles , both groups have successful people but one thing was clear: LA friends bringing in $200K have 2K sqft houses, SJ friends with $450K jobs have 1500sqft houses.  In my conclusion, being in LA we would never push out to BF, not even 1/2 way to BF.  I deduce that the SJ folks would push out to Fresno because their huge income would provide excellent living opportunity and money left over to fund the commute.  

As investor, there is some interest about BF but after our research, we invested not in the closer BF but in Fresno.

My group is in Socal, we got a property with some yard with a pool and planned on removing pool to put a modular ADU on it . Hired a large, well-researched business that does about 2 large ADUs per month. Even with the state's new adu regulation, my city in Walnut enacted a loophole with minimum lot size of 18K sqft and set backs extremely long (property line to housing wall). Property was near a bus stop (5 residental blocks away), it's on a corner so we had ample parking on 2 sides. City didn't allow the ADU company to proceed. One angle that may work is constructing attached addition. Our city has some hills and retaining walls or walls in general are very very sensitive to our city inspectors so that's another hurdle you may be weary of. We're out $3K for the process, planning. (It was suppose to be credited to the project).

Have a triplex in Fresno California but live 4 hrs away, have 2 kids. Looking to house hack with another triplex or fourplex by occupying 2 units. May have to cut a interior doorway to connect the 2/1 into 4/2 to make work. Assuming the savings would be in the personal property lower interest loan, lower maintenance costs since I can inspect & diagnose problems, make some improvement along the way. But there are struggles to be had (lack of space, lack of good local schools).  

At this time I'd hold off in my recommendation because of mixed results.