All Forum Posts by: Seth Borman

There are a lot of things here.

First, my read on SB9 is that you can build a duplex (either attached or detached) without owner occupancy.

Because you can't tear down most SFRs, this is similar to adding an ADU, but it will have difference building code requirements (sprinklers) and be valued as a duplex.

If you split the lot there is an owner occupancy requirement. The lots that I've found will generally work best if the owner splits the lot in half, keeps the SFR at the front and adds a duplex to the rear. Younger investors, or older ones without kids and parents and dogs and other such things can certainly choose to live in a duplex unit.

I don't expect this to be a game changer, although I do expect that it will change the way ADUs are appraised.

 There were a lot of contemporary reports about it in the teens and 20s. Even the proponents of zoning that wanted it for non-speculative reasons realized quickly that it was a tool for speculation within 10 years.

 It's in there. 

I suspect that you'll see more SFR lot splits and duplexes behind SFRs than anything else. In scoping out lots I found a really nice one in Los Angeles where you can buy a house for $650,000, put a duplex in the back and it will be worth $1M, or a few hundred grand more than it cost to build. The SFR won't lose any value, so it's definitely a way to create real value if you are willing to house hack for a few years.

The other thing that is in there is a parking minimum reduction to 1 or 0, which is really powerful for narrow lots.

Zoning was largely created to assist speculators in profiting from zone changes.

The owner occupancy requirement in SB9 applies to the lot splits, not the duplexes.

If people want to be surrounded by SFRs they can move out of cities.

I don't expect a huge amount of construction from these laws, but there will be some. I already scoped out a few opportunities to add duplexes or to split existing detached duplexes into SFR lots of their own.

You need to understand how Prop 13 property taxes work.

 So give up the manufacturer's warranty? I'll pass. Also, state law gives us 24 hours to repair the heating system.

We replace heating and cooling systems when they start to need repairs. 

We've found that emergency replacements are far more expensive than planned replacements, often 60% more.

Modern high end units are actually designed to run 100% of the time. That's not a big deal.

They might have it set to 67° to try to get the (almost certainly oversized) unit to dehumidify the house.

Go to YouTube, look up Nate Adams BAD *** HVAC or the Home Comfort Book, do some homework, and ask some questions.

Right now the state insurance regulators are forcing insurance companies to write risky policies in high fire areas.

Eventually that will have to stop, and you'll see values crater in many paces because the properties can't be mortgaged.

I'm seeing wall mounted mini splits all over in properties that are quite nice, including new construction houses built for sale.

That said, central air is usually better than a multi split.