All Forum Posts by: Oscar Miguel

Thank you Dan, figured as much. I'm hoping things change as they are slowly progressing for ADU's, but for the next move it appears I won't be able to count on the ADU income for DSCR. In San Diego, that'll limit my purchase options quite a bit.

Hello everyone, I searched first but couldn't find any recent info. I recently completed a hybrid house hack-BRRRR-ADU build combo which I'm extremely stoked to say worked out almost completely to plan. I used a lot of information from BP, and even went as far as reading the new CA ADU bill, speaking with the congressman associated with it, educating both my architect AND the city on the new guidelines. It was super intense at times and definitely frustrating. But, overall everyone was open-minded and we worked it out. I think I submitted my design on 1/2/2020 as soon as I legally could. I've completed my primary home rehab, ADU build, and have a tenant in place. Now for the next move/challenge:

I want to start looking for my next house hack but heard from the broker I had originally used that they cannot use my ADU rental income for DSCR. I was wondering if anyone knows of loan products out there that are beginning to look at or accept this income for DSCR?

For any noobies: Research a ton and feel free to reach out to people nicely, you'd be surprised just how often people want to help. This was super complex for me and REI is definitely not my forte, but it all went relatively smoothly. Despite having a more than full-time job and other responsibilities. Just do it!

Thank you @Matt Clark, I appreciate the insight!

Hello everyone! I am finally moving forward on an ADU project I have been working to permit since the new ADU law went into effect in California back in January of 2020.

Originally, I wanted a tub in the bathroom since a full shower would give me more value in the property as well as higher monthly rent.  However, now that the walls are framed, I am finding it to be a very tight squeeze in the bathroom with the sink right next to it.  The sewer lines have already been placed, inspected and concrete poured so I cannot change the location of the toilet or tub.  BUT, I can opt to create more space by going with a shower stall instead of a full tub.

I was wondering your thoughts on this. My thought process is that this ADU is in a beach community and people are used to smaller spaces, so I'm leaning towards keeping the tub so I can claim a full bathroom vs. 3/4 bath.

Thank you all and have a safe holiday season!

Hello all, I have been doing research for a bit, but I think this issue might be a little new for options to really open up.  I thought I'd reach out through these forums to see if anyone has any insight.  

I am 2 payments out of forbearance and in an FHA loan. MIP is very high (I live in San Diego) and while I've only been in my home (duplex, owner-occupied) for a little over a year, I have made some upgrades and the local appreciation might have me at around 85% LTV. My question or request for help is as follows:

Lenders right now do not know how to treat my HUD Partial Claim second lien (the amount that was not paid during forbearance), and so far the lenders I have spoken to would only be able to treat it as a cash-out refinance, instead of Rate and Term. Doing so will negate the benefit of the rate drop, but at least I'll have PMI that will disappear eventually. I would like to someday build an ADU on the property, but as a duplex, I cannot build the ADU and then expect to refinance.

So it's kind of a now or not for 10 years kind of thing.  By then I'll be futher along on my amortization schedule and probably wouldn't want to do it.

I would welcome any advice or referrals to any lenders that have experience in this or have more flexible options.

Thank you all for your help, be safe and keep up the great work everyone!

Thank you Twana, I would be 100% in for a 85% with the lesser PMI and I think I'm probably very close if not already there for 85% LTV. I'd love to do that and be done with it. I worry about not getting this done in time for whenever more inventory returns to market and values level off. If possible I'd appreciate it if you could refer me to where you saw the 85% LTV refinance option.

Thanks!

Hello everyone, hope everyone is safe and happy and moving forward in your respective goals.

I bought a duplex house hack in San Diego County August of last year using FHA. I figured I would be in this loan for a few years while I build enough equity to go into a 90% or maybe even an 80% refinance loan to remove MIP or at least a PMI that would someday go away without having to full-on refinance.

HOWEVER, as in much of the country, pricing is skyrocketing in SD right now. I live in one of the last "affordable" beach communities in San Diego, and many properties around my neighborhood are being flipped or rebuilt and coming onto market. I am thinking I'd like to ride that wave and try my luck at refinancing out of the FHA earlier than originally planned. Where I could use some advice is on what I can do to get an idea on what my home may be worth. I have a different footprint than most sales in my area since I have a 2 unit detached parcel vs. single-family in the area. There are a couple of 4-plexes on the market with my footprint where they converted the garages to add the extra 2 units.

 The sq ft price is enough to give me a valuation of over 80%!!!  But, I understand that probably wouldn't be the metric used in calculating my valuation. I do want to try my luck at a refinance, but don't want to pull the trigger too soon.  I am already monitoring the properties for sale online and hope those similar footprint homes sell well and soon, but that likely won't give me any info till November.

Thank you for any help and have a wonderful day!!

Hello all, I hope everyone had a good weekend and is safe and healthy.  I'll jump right into it:

Long ago I purchased a corner property in a very small/low-income town in southeast California.  It's a very small town with little to no development and rarely is a comp available.  I have a duplex on the property now but over half of it is just an empty lot on the corner.  The property is zoned for up to 6 units and the City has been vocal about being eager in approving permits to develop.  The empty corner lot can draw debris or hang out sessions with local teens.

My biggest issue in the area is that rents are so low that stick build is not really worth the investment and construction loans aren't really an option since ARV is not going to be enough to justify the expense. This leaves me with looking for a used modular home and installing it. I'm looking at that option, but haven't had luck finding a decent looking mobile that is 1976 or newer.

I heard there can sometimes be programs that will subsidize costs of building in certain areas.  Any advice folks?  On where I can look for these programs or for used mobiles?

Thanks everyone!

LOL, great comment @Remington Lyman!

My $0.02:

I just had my favorite tenant move out because they bought a home.  They have a newborn and were worried about handymen/prospective tenants coming to the property.  I agreed, so I send them a link to a Craigslist ad that had all the pictures I would want in my ad.

I asked them to clean up the house and please mimic these photos in exchange for no one visiting while they were there.  They agreed and I had pretty good pictures within 48 hours.  I took those pictures and posted them on a Craigslist and Zillow rentals ads and it was a hit.  I even tried my luck with higher rents.  Long story short, I have qualified renters in place and the unit was only vacant for 2 weeks.  With the higher rent, I hardly felt a difference during the vacancy.