All Forum Posts by: Nicola Rutherford

I'm licensed in California but I'm in the bay area. I do have a property in kern co though so I'm down that way fairly regularly. 

Hi Jacob, 

I'm a CA architect, I have a friend/colleague that primarily does ADU design (she's not licensed, but with over 8y experience), if you'd like, I could connect you. She's wonderful, but not on this forum - email would probably be the best place to start.

Hi Chris, costs for consultants are often a percentage of the total cost of the project, structural fees for a residential project are usually around 2-5% of the total cost of construction (unless it's a complicated build, sounds like yours isn't). Architects are usually more like 7-20% for residential work. So think about the total cost and if that falls within that range. You do have the option to hire the consultant yourself, but there's some coordination responsibility that can get mucky if the SEOR is not contracted through the architect. You can always ask to negotiate the price! Best of luck

Are you a licensed General contractor? Sounds like you've got some experience with the ADUs which is great. 

Disclaimer, I've been looking into this for myself (as an architect, design build is very compelling), but I haven't done it yet, just got the land this month, so others may have better info. 

I believe in California you will need to live in it for at least 12 months before you can sell, after you get your CO, and you can only do this twice in three years. There are certain things you will need to contract out, making you an employer, so make sure you are insured for that and handling the proper tax docs. 

Check your market on AirDNA and Pricelabs market dashboard to get a sense of what the competition is doing. Assume you are not the only one adding to the market saturation and run your numbers for a non-optimal year. If it still works, go for it! I recommend trying to give your market something novel, so research research research and use some creativity to stand out from the rest!
Check out the podcast "Thanks for Visiting" especially the first season, which is all about setting up. Those ladies are a wealth of information. 

Figure out what your minimum daily rate is based on the costs of running at 60% or your specific market's low season, including repairs, supplies, and periodic replacements, so you don't end up paying for folks' vacations!

As a coffee drinker, I provide options in my STR. Keurig with a selection of flavors for folks who want an easy cup, they are often consumed so folks like them. But I have a burr grinder, pourover and french press as well for folks who like actual coffee from actual beans. They store easily in the cabinets but we have had plenty of guests message to thank us for the options!

edit: our cabin sleeps a max of 4 but often it's couples on an adventure getaway. 

Hey there, 

It will depend on your local building department requirements, but you will likely need a sketch and a permit, although no need for an architect for something like that, your contractor should be able to handle it. 

Investment Info:

Single-family residence buy & hold investment in Oakland.

Purchase price: $440,000
Cash invested: $25,000

2bd 1ba needed some work, so live-in fix and hold to rent.

What made you interested in investing in this type of deal?

I could live in the space while I fixed it and I love a good project. Allows me to work at my pace while I also work full time W2

How did you find this deal and how did you negotiate it?

MLS, I had an agent who went above and beyond to help me secure this house in the brief dip at the beginning of the pandemic.

How did you finance this deal?

Conventional mortgage with great interest rate. Savings from W2.

How did you add value to the deal?

Having enough knowledge of buildings to identify and know how to navigate the issues, knowing how to do repairs myself, knowing when to recognize a good opportunity that had been on the market for a while.

What was the outcome?

I had my first offer accepted and over the last year it's gained a significant amount of equity.

Lessons learned? Challenges?

It's possible even in a challenging market like the bay area to get your foot in the door. I believe I will be able to rent with a small profit margin after all the contingencies based on area research but time will tell.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Chris Mason, mortgage broker, was instrumental in making this deal come true. Christine holt, agent, went the extra mile for me.

From an architecture and construction side, procore is a powerful tool for this, especially for larger scale developments. But seconding asana as a free option, it will just take more legwork to make it do what you need it to. If you just want a scheduling tool, looks like wrike might be your tool to develop Gantt charts etc. 

I haven't flipped so I can't speak to the selling aspect yet and if there are any additional taxes incurred as a resident alien, but I have purchased a home for buy and hold with a TN. I was not eligible for an FHA loan because of my visa status but conventional was no problem! I did go in with min 3 years of American tax returns and a healthy American credit score, they would not accept my Canadian credit score initially which slowed me down a bit. Hope that is helpful!

Good luck!