All Forum Posts by: Pat Saperstein

We have just converted our garage to a furnished legal ADU and I have someone who wants to rent it for 2-3 months. I already rent out a 2 bedroom duplex and have had very good longterm tenants for two or three years at a time. For medium term rentals, is there anything to include in the lease that could help protect me from people trying to stay longer than their term? Are there more protections on Airbnb that would make it worth it despite the cut they take? As I understand it, Furnished Finder is just a listings platform and does not assist with leases or anything else, correct? Thanks for all your help!

I would like to know -- since the ADU law is written to provide more housing an prohibit short-term rentals, how do longer-term temporary rentals fit in? I've heard there's a group for film business professionals, for example, looking for housing for a few months a time. A couple of other questions -- is it worth it to do an opened-up ceiling and how much does that increase the cost? What are some of the best ROI options such as skylights, light tubes, designer appliances, fitted closets, etc.?

I'm talking to them about doing an ADU now, but getting the financing separately. They would just be doing the design and construction. They're not cheap but they seem to be good quality and I don't want someone less experienced to screw up the permitting. Would love to hear from anyone who has worked with them though.

I am considering a garage conversion on a property that already has a duplex, which was not permissible until the new law went into effect on Jan. 1. Costs may be lower in Yucaipa but the first two estimates I got were upwards of $100k for a very small unit (300 sq ft.). However, in LA that could still rent for $1400-$1600, which would be a great return on investment. I hit pause on my plans during the pandemic because I'm worried about trying to finance that large an amount and prefer to hold on to cash. So how much would it cost to build, how much rent would you get, and how would you pay for it are the main questions to ask. In addition, if you're living on the same property, how much privacy will you or your tenants have and how can you maximize that with a private yard area, etc.

I'm just starting to look into a similar idea. Sounds like costs are a bit lower in Portland because in L.A. even the smallest ADU is $100k-plus. I'm trying not to dip into my emergency fund so I need to do a $100k HELOC or cash-out refinance for $70k and maybe tap into $30k of emergency fund. How large will it be and what do you intend to rent it for? Sounds like a good idea if you can make the numbers work. Mine would rent for about $1600 per mo.

@Carlos Alonso I also have a duplex and a garage (in Echo Park). I would love to talk to that designer also. I got an estimate to convert our 300 sq ft. garage from someone who recently built a very nice ADU in our neighborhood, and it was over $100,000. Others have told me this is the going rate, given how many permitting requirements there are to make it legal. The contractor said it's basically like building a small new house, since very little from the present garage will be retained. I could potentially rent it for around $1500 a month so although it could potentially be paid back in six years, it still seems like a lot.

I recently got an estimate for converting my garage to a legal studio apt. rental (ADU) unit. It's upwards of $100k, I know, it sounds insane to most of you but is pretty average for Los Angeles considering the amount of permitting. I could probably rent it for at least $1500 per month so that's a pretty decent return, but then we would have a stranger living in pretty close proximity (small lot). It's also more cash than I have available so I would have to supplement with a HELOC or refinance. Would I be better off buying an out of state property and not putting all my eggs into the property I live on? I'm interested in buying a duplex in Portland, Ore. so my son can get a break on rent and I can rent out the other side, but that market is pretty expensive too and there are few duplexes. Assuming I could raise $100k in cash, it would be pretty tough to find a fixer upper in the LA area that I could rehab and rent out for under $550k, which is another alternative. What would you do? Realistically I would prefer to just use the $60k I have in cash and not have to deal with extra loans. Thanks!

What about Arizona? If you listen to the podcast, you'll see the buyers aren't terribly concerned about being close to their properties, but I understand the desire to lay eyes on them. Bakersfield and the Inland Empire are also possibilities.

Yes, California has just approved having more than one ADU on a lot, or in my case, having an ADU even if you already have a duplex. It takes effect Jan. 1 for the whole state. Here is some more info. Does anyone in Los Angeles have an ADU contractor to recommend?

https://carlaef.org/2019/09/13/making-sense-of-this-years-adu-legislation/