All Forum Posts by: Randall Demary

I have the smallest LG combo in both my JADU and now in my ADU as well. I love them! As always, it will depend on your prospective tenants. People who aren't open to trying things won't like it. We had an older couple who didn't love it, but they were also confused by the 3 button fan remote. Others will see the benefit of no longer forgetting to switch the laundry and ending up with nasty, smelly clothes. BTW, there's a weird little trick to these things; If you take an item out when the cycle ends and give it a little flick, it is instantly completely dry! And the space savings are a nice bonus too.

Would love to hear some feedback on the BP Lease Agreement Packages, especially the pack for California as it's the one I'd be using. To those who've tried them, any problems or concerns? Anything that's been especially helpful? Other thoughts? 

So I'm late to, but here are some thoughts that haven’t been covered yet– there’s potential for a couple of strategies if you are willing to owner occupy (at least for a while) and expect to stay put for a time. My wife and I are in the Sacramento area and buying a new construction home that has a JADU already as part of the plan. These are actually the new BIG thing in new construction. Check out this link to a floorplan by Lennar, one of the country's biggest builders.

https://www.lennar.com/new-hom...

People are drawn to the flexibility of JADU floor-plans as they can use the space for all sorts of things: home office suite; room for an older teen; adult child living at home; In-Law unit; Airbnb; home gym; rental... You get the idea.

So investing. For a rental, there are lots of advantages to ADUs, and doing both a Jr and a detached let you double up. Pay property taxes for one property instead of three, same with city services, and lots of other things too.

Yes, if you rent a JADU, you’ll have to owner occupy. At least for a time. But if you want to make the most out of your residence as an investment, building both units is a great way to do it. When you want to move, you have two choices:

1) Sell. As stated above, homes with JADU plans are very popular and increase the value, probably more than an ADU in that there are lots of threads with folks having trouble getting the assessment to properly value the ADU. A JADU can be treated as just another wing of the house and included in square footage, etc.

2) Keep renting! You can always rent the main residence and the JADU together and also rent the ADU. Sure, it won't bring in as much as if you could rent all three, but it leaves you options.

As for OO requirement, it does have some upsides and ways to off-set the down. OO means you can easily manage the property yourself. You can keep an eye on things just by doing your normal routines. Also, you're likely to get better tenants as they know that having you there means they won't be able to throw frat parties every other day. As for privacy, with the right property, you can easily put up fences, hedges, etc that make each unit more like any other neighbor than a roommate. I definitely wouldn't be trying my hand at this otherwise!

@Matt L. Hey Matt- sounds like a fun project. The only thing I'd add to the conversation is that as far as I can tell it's possible to have a JADU that's not a JADU. Meaning lots of homes have attached in-law suites that aren't classified as ADUs. If an owner wanted to live on site and rent the JADU it should be treated like renting out a room. You wouldn't have the legal protections, but it would make it easier to stop the owner occupancy. You could then rent the house & ADU together if you want to move out. Don't know your market but in many places houses with JADUs are very popular because of the flexibility and not for the purpose of renting. Just something to consider

@Ramon Wilson I would think that if you could add it as a Jr ADU it would work out better. It just has to be attached, but this doesn't have to mean internally attached - ie itcould just share a common wall without a door inside allowing access. You'd have to check all the local JADU regs, but if attached it could be rented out as a separate space, but when sold, etc presented as another wing of another unit. That's how SFHs that come with a JADU (like the one I'm in contract on) are presented.

Yes, I'd like that name too. Sounds that's the kind of thing that the company needs to be accountable for. If not to @Account Closed, then at least to prospective buyers who should know what to expect. 

Let's try this again. I posted this a day or two ago but needed to tweak some things to make it more clear. I'm selling my current residence and buying a new construction with a Jr ADU. VA loan & clergy housing tax benefits let me cut costs a LOT - I'm thinking about the BP "unfair advantage" concept here. JADU needs some tweaks that I've included in the purchase costs. I plan to create a very private courtyard with fencing and vegetation so we don't feel like roommates but neighbors. 

Market: Location is the new Springlake development in Woodland, just outside of Sacramento. Lots of influx of folks from the Bay and plenty of students so the market seems solid. Not too many rentals avaliable and mostly they don't seem to be sitting open. Similar listings have gone quickly. Plan is to live here long term.

Rent: Comps show nice 1 bedroom apartments with in-unit washer and dryer in areas that are a bit less desireable going for right about 1500. I'm also including utilities, largely due to the builder not making it feasible for submeters (may revisit this down the road). Having a (very nice) kitchenette instead of a full kitchen is admittedly a drawback, although I'll basically only be missing a range. If I left as a studio with the utilities I think I could charge ~1150. Changing the floor plan to make into a 1 bedroom seems a no-brainer. 

Expenses: I've calculated these based on the percentage of the property that the Jr ADU represents. For example, as sewer costs a flat 62/month, the 15% that the JADU represents is only $9. Also, I have owned solar that more than big enough for the house and JADU. Property is brand new so warranties, etc in place.

Ok, hopefully that 

Would love to hear any thoughts, feedback, etc.

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*This link comes directly from our calculators, based on information input by the member who posted.

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*This link comes directly from our calculators, based on information input by the member who posted.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Urgh. Okay I see that between the limitations of the calculator and my lack of familiarity with some of these metrics is causing much of this to not translate. I’m beat and headed to bed but wills see if I can’t clarify things tomorrow. Thanks for looking, all.

First RE investment! I'm selling my current residence and buying a new construction with a Jr ADU. VA loan & clergy housing tax benefits let me cut costs even more - thinking about the BP "unfair advantage" concept. JADU needs some tweaks but doable. Probably only about 10K worth but put it at 20 for good measure. Location is in Woodland, just outside of Sacramento. Lots of influx of folks from the Bay and plenty of students so the market seems solid.

Would love to hear any thoughts, feedback, etc. 

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*This link comes directly from our calculators, based on information input by the member who posted.

Ryan with How to ADU has some helpful tools, etc. He's based in Napa.

https://www.how-to-adu.com/