All Forum Posts by: Ryan Russel

I am in the process of building my first ADU and will have two rental properties next year. Taxes are absurdly complicated and I am looking for someone with specific knowledge in real estate tax for someone starting out. I figure paying someone a couple hundred (thousand?) bucks to save a few more thousand is worthwhile. I'd also like the funds from one of my properties to go towards my mother, so navigating something that I put money into and she gets money out of is a curveball I'd like an expert's help with. Any ideas?

Thank you in advance for your help!

I am lucky to own a property in the Bay Area with plenty of land to take advantage fo the new ADU laws to build a rental property in my backyard. Funding is secured, but I'm still at a loss for what to build for the best ROI. My city has steep permitting/impact fee increases after 750sq ft, so I'm not sure if I should go for a 1BR 749sq ft, 2BR 749sq ft, or pay the hefty fees and jump up to 1,000+sq ft with 2BR.

If you have experience building an ADU, I would love to understand your thought process on the design you chose and what you recommend to someone with a blank canvas and plenty of space for up to about 1,200sq ft.

The second sticking point is how to determine who to designs the ADU. On one had, there is a cheap design firm that can knock out a simple ADU blueprints for about $11k, whereas there is a phenomenal Architect who will hand-hold and manage the whole process for around $30k. I know going with the cheapest is never a good idea, but is an Architect really worth 3x for what seems to be a pretty straightforward project?

I'm a bit lost on what route to take and appreciate any wisdom you may have. Thank you in advance!

I am in the process of investigating the prospect constructing 1 or 2 ADU's. I am not sure on the size I should build and thus the rent I could charge. Anything above 500sq ft costs considerably more in permitting and utility hookup fees, so if the rent increase doesn't make up for it I'll stick to a Junior ADU. Location: Marin County Zip 94947

Option 1: Detached any sq ft (476sq studio ft or 756sq ft are my comparisons; about $40k more for the larger one)

Option 2: Garage conversion on 326sq ft (rickety garage that would probably need to be torn down and rebuilt)

What is an effective methodology for comping rents when I can't directly compare to other ADU's? 75% of a commensurate apartment? If a nearby dated 1BR apartment with 750sqft is going for $2,000, what can I charge for my new construction 476sqft studio ADU?

Thank you!

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Bonus Question: It looks like the project estimate will be close to $200k all said and done which seems like a lot (Prefab, permits, foundation, utility installs, etc). If I use a HELOC for financing, 1% payoff will be $2000 and thus break-even. No wiggle room. Am I doomed or is there something else I'm not considering? This is all in an effort to provide my aging mother who doesn't have much to fall back on with cash flow so I may preserve her quality of life as she gets older. What's the absolute most cost effective way to go?

Thank you for the kind thoughts, @Cassi Justiz.

Cheers @Zeke Liston

Hello Everyone!

A lot of the high-level details about me can be found in my profile, so in an effort to not be redundant please check there if my post description is of interest.

I started researching real estate investment fairly heavily last summer. My New Years resolution was to go from studying theory to connecting with experienced investors to better understand my options. If you have an idea to pitch, I'm open to hearing about it. 

I currently am considering investing where I live in the Sacramento area, preferably a SFH with a large yard to build an ADU (thanks, AB68) to get my feet wet. My overall goal is building equity and the idea of a new build-- despite lower reward-- interests me for it's safety (e.g. foundation warranty for 10yrs). I also recognize that it might be wise to invest out of state with the same idea and use a property manager, but picking a city to focus on is daunting. I do agree the BRRR idea is most appealing, but finding deals seems cumbersome and requires experience to get right.

I will own at least one door by the end of the year and if it goes well, will rinse and repeat as I increase my expertise in the method. Any wisdom you may have on where I should consider heading -- or who I should speak with that has more experience-- is greatly appreciated. 

Thank you in advance.

Hi Michael,

Glad to see you're coming to Sacramento. The info you provided above is quite high-level and I do not have an understanding as to what this event actually covers. Would you mind sharing more detail about the material, the takeaway, and what NREIG services you are looking to share with us?

Cheers!